Recycling wasted wage components and repurposing sterile capital  market linked investment

401k Plans can have 2 or more Balanced Investment Components; with variations to moderate market risk

Term Life Cover can be purchased at a much cheaper rate than UIL and Endowment Plans

This strategy can by far exceed the benefits which a Split Dollar Insurance Plan could produce

There need be no Tax on the End Benefits. A zero tax market indexed Equity Investment can be balanced with a zero tax Capital Stable or Cash Investment.

Repackaging Executive Salaries can fund at zero cost annually investments totaling $40,000 each year

A Market Linked $20,000 a year investment can grow at an average of 15% a year – which compounded doubles every 5 years.

For example over a 20 year period each investment of $20,000 would amount to $160,000

Assuming the employee remains at work for 20 years the 20 contributions would be $400,000.

Aggregated investment results for a 20 year period could be $4.8million – Tax Sheltered

The invested period for each $20,000 investment will shorten as the 20 years evaporate. While you remain with your current employer until year 20 ultimately all investment capital can be rolled over intact free of tax **(using a ROBS Plan)

Alongside the Equities Indexed Investment is the conservative zero risk stable investment – which can be enhanced by recycling back to your employer as a loan at an attractive rate.

The recycled loan should be attractive to an employer – especially when employee numbers are large: for instance if there are 100 employees the employer obtaining $20,000 a year from each could obtain $2million annually with interest deferred 5 years. $10million could be available to the employer over the first 5 years of the program.

Capital Split Dollar