@travis.woo.wealth: One thing wealthy investors can do is borrow against assets instead of selling them. That can create liquidity without immediately realizing a capital gain. But there’s a catch: "the loan is secured by your portfolio." If your investments fall far enough, the broker can require more collateral or liquidate positions. That can turn a tax strategy into a forced sale at the worst possible time. Interest also keeps accruing. Rates can change. And the expected return of your portfolio is never guaranteed. So I don’t think the lesson is: “Borrow forever and never pay taxes.” The better lesson is understanding the difference between selling an asset and borrowing against it. For someone with a large, diversified portfolio and plenty of liquidity, that can be a useful tool. For someone overleveraged, it can be dangerous. The wealthy don’t just use debt. They manage the risk around the debt. #wealth #investing #leverage #PersonalFinance #riskmanagement

Travis Woo

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Thursday 29 October 2026 23:00:00 GMT