Richard CanfieldPodcast Host and IBC Advisor, Ascendant Financial · Authorized Infinite Banking Practitioner | Author of 4 Books

Navigating the Pitfalls of Paper Asset Investments

2 Oct 2024 · 1 min

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A short conversational excerpt from a YouTube video by Richard Canfield discussing practical pitfalls of holding paper assets. The speakers describe selling assets at a loss during a weak market, creating taxable events on appreciated positions that they could not afford to pay tax on, and contrast the perceived liquidity of paper assets with the benefits of owning assets that give more control and tax efficiency. They note that paper assets can provide liquidity or collateral but question whether they are the smartest move compared with controlled, tax-efficient holdings.

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The market wasn't exactly doing that great during that time period. So I actually sold some of them at a loss. Right. Which wasn't great. And then conversely, the ones that were doing well, you know, now I created.
A tax situation.
For myself, which I also had no.
Ability to.
Handle at the time to pay for additional, you know, taxes come, you know, tax year in April. Right.
So that was, like.
Kind of looming on me. So I find that that's kind of interesting. Right. They always kind of.
Talk about that.
It'S great to have paper assets because.
Of liquidity.
But in reality, I don't think it's the smartest move. Right. So having something that's in your control. Right. Having something that's tax efficient and then having that.
Liquidity.
To use or a.
Collateral.
To use can be really powerful.