of Wall Street. Need a second opinion to see how your retirement account is doing with management fees and market risk? I do not recommend that a person put all of their retirement money into this program. However, the PB should be considered a haven for a percentage of your retirement plan. If it were not for the PB, we would not have Disney World, McDonald’s, GE, and many other corporations. How does the PB work for a business? Scenario #3 The following illustration is a successful trucking firm: The owner of the trucking firm is 35 years old; at the time this was done, he was in a 22% tax bracket and has decided to put back $50,000 per year for ten years into the PB. His major concerns were trucking accidents and lawsuits. In his state, cash value life insurance is protected from outside creditors, plus he is looking for a tax-free pool of money for retirement at age 70. Now, in year eleven, he borrows money from the insurance company to buy equipment. He borrows $100,000 by using his cash value as collateral. He pays the insurance company back at $26,888, including interest over the next four years. He then repeats this same strategy three more times borrowing $100,000 from the insurance company and paying it back over a 4-year period of time. Using a commercial bank as a comparison, his total deposits are $528,010 with interest at age 45. And it looks like the bank may have the best plan until you consider his death benefit and the value at a later date. He is using a well-designed, high-grade, dividend-paying Whole life insurance policy to fund his business strategy and he considers this as his retirement plan. By following the guidelines of the 7702 IRS Code, he compares this strategy to his commercial bank is paying him 3% (net 2.34% after tax) charging him 5% for the loans. The following is a comparison of the two strategies: Total Deposits from Year 1 through Year 10 = $500,000
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