If you’re a high-income professional, business owner, or investor, traditional retirement planning tools like 401(k)s, IRAs, and even Roth accounts likely won’t get you where you want to go.
The top 1% play by a different set of rules — not because they cheat, but because they understand how to use leverage, tax codes, and life insurance in ways the average person doesn’t.
Traditional plans are tax-deferred, not tax-free. That means you’re pushing taxes into the future — when rates may be higher and your account is worth more.
Grow your money tax-deferred
Access cash via tax-free policy loans
Enjoy no stock market losses (0% floor)
Pass on a tax-free death benefit
Power Move: Use bank financing (Premium Finance) to fund large IUL policies without tying up your capital.
Most people try to reduce taxes by putting money in accounts they can’t touch until 59½. The wealthy ask:
“How can I legally reposition my income now to avoid taxes later — and create cash flow while I’m still healthy and active?”
Eliminate Required Minimum Distributions (RMDs)
Pull money out with no tax reporting
Stay below Medicare & Social Security thresholds
Create multi-use liquidity (retirement, business, legacy)
This is tax optimization, not tax postponement.
Here’s the biggest differentiator:
Secure $5M–$15M+ tax-free life insurance
Keep their capital invested elsewhere (real estate, business, etc.)
Repay the loan with policy values — not personal assets
Tax-free retirement income
Asset protection
Estate tax elimination
Legacy wealth transfer
Example: A 45-year-old contributes $300K/year for 5 years. With leverage, they create $11M of tax-free death benefit and $650K/year tax-free retirement income — with zero out-of-pocket after year 5.
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Type:
Business Owner (name confidential)
Status:
High-income, high-net-worth
Objective:
Build a tax-free retirement plan without disrupting business cash flow
The client wanted:
A reliable income stream for retirement
Minimal tax exposure
To preserve working capital in the business
But traditional retirement plans (like 401(k)s or SEP IRAs) were too limited — and taxed.
Tomer implemented a leveraged life insurance strategy where a bank funds the premiums, not the client.
1
A 3rd-party lender provides capital to fund a large IUL policy.
2
The client’s policy is fully funded by the loan.
3
The IUL grows tax-deferred with zero market downside.
4
The growing policy eventually pays back the loan.
5
After the loan is repaid, the client takes tax-free income via policy loans.
It’s like using the bank’s money to fund your retirement and protect your family — without sacrificing a penny from your business.
Metric
Premium Funding
Client Out-of-Pocket
Retirement Income (Est.)
Death Benefit (Year 5)
Estate & Asset Protection
Leverage
The client uses the bank’s capital to fund long-term assets.
Tax Efficiency
Growth is tax-deferred, distributions are tax-free.
Capital Retention
No cash flow interruption to the business.
Legacy Protection
Policy provides tax-free death benefit.
Minimum interest payments (if structured as interest-only)
Conservative IUL design with 0% floor
Carrier and bank selection based on strength and flexibility
Exit strategies built in
Business owners earning $300K+ annuallylth
Net worth of $2M+
Looking for tax-free income, estate planning, and asset protection
Want to preserve capital but still maximize wea
This is how the top 1% build retirement income and legacy wealth without draining their own cash. Now you can too.
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