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When you think about such an elite group, its only natural to have questions.
Billionaires Dont Get Typical Paychecks
Generally speaking, billionaires dont receive traditional paychecks.
This doesnt mean they dont still get paid, however.
Another method is taking out bank loans.
Heres how billionaires liquidate their wealth so they can use it.
Dividends are a sum of money paid out every so often usually quarterly by a business to its shareholders.
This can come in the form of cash or be reinvested in stocks to further bolster a portfolio.
Some billionaires and multi-millionaires live off these dividends, at least partly.
As for capital gains, these are the profits made on an investment.
Low-Interest Loans
Next up is bank loans.
Since loans arent technically income, theyre not subject to income tax.
The money is generally still subject to interest, though rates vary.
Liquidating these assets gives them greater cash flow when they need it.
Notably, this method does generally result in taxable gains.
As far as business goes, some billionaires will receive a salary or bonuses through their company.
Businesses may include partnerships, sole proprietorships and S Corporations.
The actual salary depends on the individual and may be fairly nominal compared to their actual net worth.
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