"10-8" Tax Saver Strategy


Mental Leveraging

What's your best investment? Yourself. You can't over invest in being the best. As you increase your skills, you increase your capabilities and capacity.

Financial Leveraging

Summary: Combine the unique tax advantages of life insurance with tax deductions from borrowing to invest to

  • enhance investment returns, or
  • reduce insurance costs

Your Profile

  • active investor
  • comfortable with leveraging (borrowing to invest)
  • prefer guaranteed spread between your loan rate and the return on your investment
  • high tax bracket now and in the future


This strategy lets you borrow from yourself. Your collateral can grow at 8% compound, tax=deferred. When your retire the loan, the collateral becomes available to you for other purposes,

Would you like an investment which credits 8% compound tax-deferred growth? This is possible using the tax advantages of universal life insurance. To credit you 8%, the insurer lends money at 10% and keeps the 2% spread. You are the borrower.

But insurance isn't free. However, borrowing to invest makes the loan interest tax deductible. The lender requires life insurance as collateral, which makes a portion of the premiums tax deductible (Net Cost of Pure Insurance (NCPI)). These tax savings offset - and often exceed - the insurance charges. This can be hard to believe. An example, may help.

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