take a look at this chart provided by morgan stanley this chart right here is explaining the borrowing boom which shows securities based and other non-mortgage loans to wealth management clients at morgan stanley since NUMBER_TOKEN compared to now the amount that people have borrowed against their stock portfolios has more than doubled let's also use the commercial real estate building from step one as an example let's pretend that the net operating income of a building causes it to be worth one million dollars in value uh if the owner of this building wants to take out an NUMBER_TOKEN percent loan to value cash out refi on this property they would be getting NUMBER_TOKEN NUMBER_TOKEN tax free this is the same concept as borrowing against your stock portfolio in mNUMBER_TOKEN finance or at morgan stanley for example these people are avoiding creating a taxable event by selling their stock in the example given earlier but they're still getting the cash that they need to live off of by doing so so not only are they foregoing a taxable event but these assets are also typically growing in value because of all the money printing we've seen over the years the rich are getting richer and the poor are staying there step three is the most important right now uh so stay tuned but a few words from uh policy genius before we get to that there's a lot to be thankful for this season and if someone in your life relies on your financial support whether it's a child aging parent or even a business partner you need life insurance you could save fifty percent or more on life insurance by comparing quotes with policy genius and you could save thirteen hundred dollars or more per year on life insurance by using policy genius to compare policies getting started is easy first head to URL_TOKEN whiteboard finance in minutes you can work out how much life insurance coverage you need and compare personalized quotes to find your best price when you're ready to apply the policy genius team will handle the paperwork and scheduling for free policy genius never sells your information to other companies and policy genius doesn't add on extra fees the licensed experts at policy genius work for you not the insurance companies so you can trust them to help you navigate every step of the shopping and buying process head to URL_TOKEN whiteboard finance to get started right now the third and final step literally final is when you pass away when you die your estate typically goes to your beneficiaries or heirs what typically happens now is that the loans can be paid off by selling the assets that you borrowed against in the first place and the heirs inherit these assets at a step up in basis at cost basis so say that one million dollar building that we bought let's call it NUMBER_TOKEN years ago we talked about it earlier it grew to a value of two and a half million dollars for example you can either borrow against that building again or sell it for two and a half million without realizing the capital gains tax because the heirs are getting it at a two and a half million dollar cost basis at the time of your death so there's a popular tax strategy for real estate called a NUMBER_TOKEN exchange where if you sell a property and find a like and similar property within a specific time frame you actually forego the capital gains tax on the original sale of that property so every real estate developer that i know did this over and over and over again with the intent of passing away without ever paying those capital gains taxes so if we wanted to use stocks as an example or etfs let's pretend i bought an
START_SPONSOR_TOKEN lot to be thankful for this season and if someone in your life relies on your financial support whether it's a child aging parent or even a business partner you need life insurance you could save fifty percent or more on life insurance by comparing quotes with policy genius and you could save thirteen hundred dollars or more per year on life insurance by using policy genius to compare policies getting started is easy first head to URL_TOKEN whiteboard finance in minutes you can work out how much life insurance coverage you need and compare personalized quotes to find your best price when you're ready to apply the policy genius team will handle the paperwork and scheduling for free policy genius never sells your information to other companies and policy genius doesn't add on extra fees the licensed experts at policy genius work for you not the insurance companies so you can trust them to help you navigate every step of the shopping and buying process head to URL_TOKEN whiteboard finance to get END_SPONSOR_TOKEN