I just met with an advisor pitching this and remembered this article which I just reviewed. We have a pledged asset line which you describe that seems to work fine and really no hassle, the AQR product appears to be just designed to transfer value from the client to the broker/AQR etc forever. And yet people continue to go for it.
People lose all rationality when it comes to “you can save on your taxes.” When even ultra sophisticated people like Renaissance do funky tax stuff, you know that avoiding taxes is something that causes irrationality!
This is excellent.
I just met with an advisor pitching this and remembered this article which I just reviewed. We have a pledged asset line which you describe that seems to work fine and really no hassle, the AQR product appears to be just designed to transfer value from the client to the broker/AQR etc forever. And yet people continue to go for it.
People lose all rationality when it comes to “you can save on your taxes.” When even ultra sophisticated people like Renaissance do funky tax stuff, you know that avoiding taxes is something that causes irrationality!