Re:Where Each U.S. State Gets Its Tax Revenue From
by aidenn0 on Friday November 06, 2026 @12:55PM
(#50395807)
If you are a good customer of the bank and the LTV of the collateral is very low, then you will get a very low interest rate. If the collateral pays dividends (which are also taxed at a lower rate than ordinary income), then the dividends can service the interest. Meanwhile capital gains keep accumulating tax-free.
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Re:Where Each U.S. State Gets Its Tax Revenue From
by HDThoreaun on Friday November 06, 2026 @02:24PM
(#50397108)
With post covid interest rates this strategy very rarely makes sense. Even people like zuck getting fully collateralized loans against their stock will still have to pay close to 5%. There are certainly circumstances where it makes sense to take a 5% loan, but they are few. It does not make sense to just roll loans over forever anymore. Thats why all the big tech stocks pay dividends now. Founders dont want to sell and they dont want to take loans.