Our Story of Inspiration

A creative journey that unexpectedly led to an extraordinary win‑win result!
#BestOfBothWorlds

Didn't Intend to Create a Tax Strategy

How our strategies and our company came to be is not at all what you might expect. I was not a tax lawyer looking for loopholes in our tax laws to help the wealthy. In fact, I did not set out to create a tax strategy at all. On the contrary, I had set out to devise a way to help community organizations in need of funds by providing them with free money.

The Idea

It all started in 2014 when interest rates were at historic lows. The basic concept was to take advantage of the historically low interest rate economic environment that existed at the time to generate profits from financial arbitrage transactions along with monetizing an overlooked asset – employees. Where this idea led me was completely unintended and unexpected, but is extraordinary!

The Innovative Journey

I devoted almost an entire year of my life trying to devise a way to take advantage of the historically low interest rate environment to provide ‘no cost’ life insurance benefits to unions and community groups of employees, such as teachers and nurses.

The original financial premise was an arbitrage concept. Money could be borrowed at historically low interest rates and invested in a manner which could reliably earn higher returns and produce enough excess profits to make loan payments to payoff the debt over time and pay premiums on life insurance for the community organization’s employees.

While the concept of funding the program with low-interest rate loan proceeds could work hypothetically, investment risk and collateralization issues posed real world roadblocks.

After months of long days and long nights staying up researching law and putting creative thought and energy into designing different ways to try to overcome these roadblocks, the breakthrough occurred. I finally figured out how to turn the idea into a reality.

The Lightbulb Moment

Being a tax lawyer, while I was developing this concept I recognized a unique and incredible opportunity for a tremendous tax strategy as a by-product of the concept. In fact, it is the tax strategy that is the key to making it work!

The key – if the program were instead funded with equity capital contributed by investors instead of with borrowed funds, the roadblocks disappeared.

That is when the tax strategy occurred to me. Why not have the program funded with equity capital from investors?

Equity investors would then have the unique opportunity to move their investment portfolio into a tax-free investment vehicle which would eliminate all income tax on their investment portfolio earnings. Their investment portfolio’s earnings would be returned to them over time in a series of predictable tax-free death benefit payments.

Therefore, the investor’s income taxes would not only be tax-deferred but would be completely eliminated. And they could access all of their cash and investment assets through tax-free policy loans.

This exact same strategy has been used for years to insure the lives of the investors themselves. However, never before have the lives of a group of unrelated people been able to be insured due to “insurable interest” laws.

It took a creative and innovative approach to design a unique, one-of-a-kind type of life insurance policy in order to comply with the “insurable interest” laws and make it work.

Our unique and innovative policy design not only permits this, but it delivers the desired tax elimination more cost effectively and removes many restrictive limitations of single life policies that are undesirable for investors.

AND, more importantly, it safely produces the result I was wanting to produce – it provides needed ‘no cost’ funds to community groups.

It is truly a win-win!

From Idea to Reality

The core concept was born!

We now work with select insurance companies to deliver highly-customized, investor-optimized life insurance products to investors that minimize costs, maximize investment ROI, offer robust investment choice flexibility and provide a host of other unprecedented benefits to deliver an incredibly powerful income tax elimination solution for investors.

Those investors’ policies provide needed ‘no cost’ life insurance benefits to unions and other groups of employees who are socially and politically desirable to support.

The benefits of this program produce an annuity-like stream of cash flows for the community group that is a free-and-clear asset on their balance sheet.

It truly is the best of both worlds for both the investor and the community groups that society so desperately needs to help.