Buy, Borrow, and Die: A Smarter Way to Build, Use, and Pass on Wealth

For decades, most Americans have been taught the same financial formula: Work. Save. Pay taxes. Invest. Retire. Spend your assets.

While there’s nothing inherently wrong with that path, it may not be the most efficient way to build generational wealth.

Many of America’s wealthiest families follow a different philosophy, often referred to as “Buy, Borrow, and Die.”

At Nation’s First Financial, we don’t believe this is a magic strategy or a one-size-fits-all solution. But when it fits a family’s goals—and is implemented correctly with qualified tax and legal professionals—it can be an incredibly powerful way to preserve wealth, reduce taxes, and create financial flexibility.

“The way you access wealth can be just as important as how you build it.”— Daniel Rondberg, Founder & Financial Advisor

Step 1: Buy Assets

The first objective is simple: Own assets that have the potential to appreciate over time.

These might include:

• Businesses

• Real estate

• Investment portfolios

• Private investments

• Certain life insurance strategies

• Other income-producing assets

The goal isn’t simply accumulating cash. Cash can lose purchasing power to inflation. Assets, on the other hand, may provide opportunities for growth and income.

Instead of asking, “How much money do I have?” consider asking:

“How much of my wealth is working for me?”

Step 2: Borrow Instead of Selling

Imagine you own an investment worth $5 million. You need $300,000.

The traditional approach might be to sell part of the investment. Selling often creates potential tax consequences, including:

• Capital gains taxes

• Reduced future growth

• Lost compounding

• Lower future income potential

Instead, many wealthy families explore borrowing against appreciated assets.

Why? Because loan proceeds generally aren’t taxable income, while the underlying assets may continue growing or producing income.

This is sometimes referred to as “buy, borrow, die” because the strategy focuses on accumulating appreciating assets, accessing liquidity through borrowing rather than selling, and ultimately transferring wealth as efficiently as possible.

Of course, borrowing introduces its own risks. Interest rates, repayment obligations, market performance, and liquidity all need to be carefully considered.

Step 3: Die — and Transfer Wealth Efficiently

The final step isn’t morbid. It’s about estate planning.

Under current U.S. tax law, many appreciated assets may receive a step-up in basis at death, meaning heirs may inherit assets with a tax basis adjusted to the asset's fair market value at the time of death, potentially reducing capital gains taxes on appreciation that occurred during the original owner's lifetime.

This makes decades of unrealized capital appreciation potentially more transferable to the next generation.

However, tax and estate laws can change, and individual circumstances vary significantly. That's why strategies like these should always be coordinated with qualified financial, tax, and legal professionals.

Why This Philosophy Matters

Think about two investors.

Investor A builds a $4 million portfolio, sells investments every year to fund retirement, and pays taxes repeatedly along the way.

Investor B builds a $4 million portfolio, uses loans strategically when appropriate, keeps assets invested, and works toward a multigenerational wealth-transfer plan.

Both investors may have accumulated significant wealth.

The difference is how that wealth is accessed, managed, and ultimately transferred.

That distinction can have a meaningful impact on how much wealth remains available for a family and future generations.

Important Perspectives to Consider

This Isn’t About Avoiding Taxes

At Nation’s First Financial, we believe families should pay the taxes they legally owe. We simply believe you shouldn't pay more than the law requires.

Does This Work for Everyone?

No. Like every strategy, Buy, Borrow, and Die has limitations, risks, and trade-offs.

Interest rates, debt levels, investment performance, cash flow needs, estate planning, and tax circumstances all need to be evaluated carefully.

Our Philosophy

We help clients think differently about money.

Our goal is to coordinate tax, investments, income, insurance, estate planning, and cash flow into one integrated strategy that serves their life—not the other way around.

Building Wealth Is Only Part of the Equation

The wealthiest families often ask different questions.

Instead of simply asking, “How much can I accumulate?” they also ask:

“How can I access my wealth efficiently?”

“How can I preserve what I've built?”

“How can I transfer it to the people and causes I care about?”

That’s the heart of the Buy, Borrow, and Die philosophy.

At Nation’s First Financial, we help families explore strategies like these so they can make informed decisions with confidence.

This article is for educational purposes only and should not be considered individualized financial, tax, or legal advice. Tax laws and financial circumstances vary. Consult qualified financial, tax, and legal professionals before implementing any financial or estate-planning strategy.