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How To Have A Bulletproof Financial Plan

Listen To My Latest Podcast Episode:How To Have A Bulletproof Financial Plan

Tax Free Matching Overview

Through partnerships with top banks and A+ plus rated insurance companies this strategy works like a no-limit ROTH on steroids.

  • Contributions are matched at a ratio 3 to 1. 
  • Income streams are tax free and typically 60%-100% larger vs. traditional savings plans.
  • This can save six figures or more in taxes over the course of retirement  
  • There is no upper limit on the matching. 
  • Available for ages 18-65. Requires household income of $200,000 or greater.

Tax Benefits

Combining taxable and tax-free income streams during retirement allows you to stay in lower tax brackets.  This is designed to fit with other areas of tax planning: 

  • Use taxable and tax deferred money to fill up the lower brackets. 
  • Use tax free money to avoid going into the higher brackets. 

Example: You are withdrawing at a 32% rate (Net after all deductions). You have a $100k tax free income stream. This saves you $32k per year in taxes. Over 20+ years, the tax savings could be over $640,000.

How It Helps

  • Tax Protection: Save six figures or more during retirement
  • Creates a tax free “pension” to secure your future income while protecting your current lifestyle
  • 14x-20x return on invested capital with distribution and legacy benefits
  • The matching helps you catch up or get ahead on savings – the only plan in the marketplace that brings money to your retirement.
  • Creates a massive backdoor “ROTH” which can double your tax free income down the road
  • Recapture Time: Using the bank matching is like you started saving 10 years earlier
  • The Dynasty Path: A foundational piece to help your wealth continue to grow  for generations vs. decline during retirement

Asset Structure

The product is a proprietary design of term insurance and indexed life insurance. The insurance umbrella allows the funds to be tax free. This proprietary design:

  • Achieves a cost structure of <1% long term
  • Has double digit growth potential based on popular market indexes
  • Guaranteed against market losses
  • Provides tax free income streams

Protection Elements

  • Provides permanent death benefit protection for your family
  • Includes critical illness benefits if you get chronically ill
  • Asset protection – funds are creditor protected

Funding Structure

  • Bank matches your contribution 100% years 1-5 (Example: $50k you, $50k bank)
  • You are done funding at year 5
  • Bank funds 100% years 6-10 (Example: 100k) 
  • The insurance company is providing guarantees to you and the bank
  • There are no personal guarantees or outside collateral required
  • You are not on the hook for the bank loan
  • Year 15, the bank is paid off from interest earned, like a renter would pay off real estate
  • You can then take a tax free income stream for retirement
  • You can also opt to pay off the bank with outside funds, which could double your tax free income stream. (Think of this like a provisional back door roth)

Safety Protocols

Plans are stress tested through the worst economic conditions such as the high interest rate 1980’s and the Great Depression. While it is theoretically possible to break the plan, you would need conditions worse than the Great Depression with twelve straight years of stock market declines.

Risks and Downsides

  • Long term strategy – you need to wait 15 years to take income
  • Can take income year 11 if paying of the bank with outside funds
  • Requires a five year contribution
  • If you cancel in the first 5 years you will lose money.

Overall, Insurance companies are extremely safe which is why the banks will provide the matching without personal guarantees from you.

Growth Strategies 

  • The insurance company uses call options on popular market indexes to grow the funds. 
  • Because the insurance company is using options, funds are never at risk in the market.
  • Interest is locked in each year and cannot be lost in future years due to market downturns.
  • If the market is down,  there is a “0%” floor.  No interest is earned. No market losses incurred.
  • When the market is down for the year, a new option is purchased at the lower market level to capture gains when the market goes back up.
  • This process of locking in gains and buying new options when the market is down has achieved steady returns in both bull and bear market cycles.

To estimate your tax free income schedule a demo here:


Program History:

This program has been in existence since 2013, and the expertise behind this unique strategy comes from our extensive experience gained serving ultra-high net worth families (average $40m net worth) since 1998. Currently over $2 Billion in the strategy.

Why would a bank do this?

Banks are lending into this structure because they essentially cannot lose money due to its unique design. The zero floor inside the insurance product means that unlike a stock, bond or property, the underlying asset cannot have an investment loss. For the banks, this is one of the safest loans available.

What are the qualification requirements of the plan?

Client Income: Greater than $100,000 per year if corporately sponsored, $200,000 if individually funded. Age: 18 to 65  Health: Normal to good health.

Do I need to make interest payments?

No. The interest is rolled up/capitalized into the loan and is projected to be repaid the 15th year.

How is the bank loan repaid? When does the bank get their money back?

In approximately the 15th year, the bank loan is projected to be paid off using the interest earned.

What happens after the bank is paid back?

Once the bank loan has been repaid, you can take distributions in the form of policy loans or withdrawals at any time (dependent on the cash value).

Do I have any risk if there isn’t enough money to pay back the bank?

No, the bank uses the policy as the only security for the loan. There are no loan guarantees. There is no liability outside of the policy itself.

What is the risk? Could I lose all my money?

Any financial plan has risks. To break the plan is theoretically possible, but it would need to be something worse than the stress-testing described below. Should that happen, you could lose the money you put into the plan, but no more. We looked at the following situations:

– Worse than the Great Depression. If the market was negative every single year, you would get a zero every single year, minus costs, and then eventually it would run out of money. In the extremely unlikely event, where the markets were negative every single year, the economy would collapse entirely, all bonds would default, and all life insurance companies would be out of business. The longest the stock market has had continuous negative years is five years (Great Depression). We stress-tested where nine out of the first 12 years were zero returns, and the plan survived.

– Severe interest-rate rise. As leverage is being used, we also tested the worst interest rates in US history; the early 1980’s. The simulation replicates those high interest-rate years. In the simulation we tested for a sudden rise in interest rates going over 18% on the loan. Again, the plan passed the test.

To break the plan, something worse than the above tests would need to occur.