How Warren Buffett Don’t Pay Tax (and what we can learn from it)
Warren Buffett’s true tax rate is only at 0.10%. He is really a good example of buy-borrow-die, as well as other billionaires. They own stock securities, and don’t sell, when stock price going up and up, their net wealth growth, and they don’t sell, so there is no income, no realized capital gain, and they don’t pay tax.
Jeff Bezos, Amazon.com founder, even claimed a $4,000 tax credit for his children in 2011, and was worth $18 billion.
Lord of the Roths: Peter Thiel, the tech mogul, turned his Roth IRA account to a $5 billion tax-free account, he will pay zero dollar from his Roth IRA account when 2027, he is 60.5 years old.
You may think they are billionaires, I am not, how this can apply to me. If we study the common part their stories, they own assets, and those asset grows lot of times. For Peter Thiel's case, his Roth IRA account is less than $2,000 in 1999. If you investing something can grow multiple times, and don't sell it, you can also take zero tax benefit.
The mindset, not the start money, common people don't have, is how to find asset able to growth multiple folders, and never sell it. In short, how to buy-and-hold?
I will continue write about what assets are worth buy-and-hold forever.