Using other people’s money in our popular culture is the basis of banking. The bank loans money to homeowners to support mortgages on homes of credit worthy applicants. The bank receives a return of interest it charges for the mortgage loan. Then the bank credits savings accounts and certificates of deposit an interest rate lower than the mortgage interest it charges and lives off the spread or difference between the two interest rates. This form of arbitrage is the foundation for banking. Affluent business owners can pledge their assets as collateral for loans or go directly to the bank to fund business expansion. Recently this simple strategy has been applied to business owners to fund their own retirement plans as a significant supplement to their retirement plans above and beyond their traditional defined benefit and contribution plans. The leverage of borrowing money to fund your retirement is relatively new in retirement circles. But combining that with an old idea like using non-modified endowment life insurance contracts really amplifies the leverage and the total rate of return.  The cash values of a life insurance policy have significant tax advantages as well as investment options to create an opportunity to plan for   Read more…