Leverage without an edge is gambling. We start with the edge.
Validate ECFS (cash flow) and EPIG 500 (protected growth) first. Then scale into the PPLI + premium financing chassis when ready. Proof-first path: see the edge work before adding complexity.
Default path: validate engines first. ← | → Advanced: BBD readiness + full underwriting.
💡 Founding Member terms locked until caps reached (25 members or $100M AUM). Terms may adjust for new entrants after capacity is filled.
Fund a policy wrapper (often premium-financed PPLI) targeting tax-free compounding.
Access liquidity against policy assets within strict LTV guardrails.
Death benefit retires debt; remaining value passes to heirs/legacy.
Most Founding Members validate the engines first. Some are ready for BBD readiness + full underwriting. Choose your path.
You want to see the edge before committing to premium financing and PPLI complexity.
You're near the $1M/year premium capability, comfortable with PPLI + premium financing, and ready for institutional underwriting.
We're limiting our soft launch to 25 Founding Members or until $100M AUM (whichever comes first). Founding Member terms lock until one cap is reached. Terms may adjust for new entrants after capacity is filled.
Full education, case studies, and implementation roadmaps for both proprietary engines.
If annual Scorecard objectives aren't met, credit/waive next year's program/advisory fee per Charter terms. (Not a performance guarantee.)
When ready, seamless path to PPLI + premium financing + diversification compliance + guardrails infrastructure.
AUM-based flat annual fee (rate card provided during onboarding). Your founding rate stays locked until capacity caps are reached.
Written agreement defining capacity, pricing, scorecard objectives, fee-credit/waiver policy, and disclosures.
Direct access to advisors, quarterly strategy reviews, and first-look at new features/infrastructure.
AUM-Based Flat Annual Fee
Rate card provided during onboarding call. No percentage of performance, no hidden fees. Transparent, institutional pricing locked for Founding Members until capacity caps are reached.
Fee Credit/Waiver Policy
If annual Scorecard objectives are not met (defined below), we credit or waive the next year's program/advisory fee per the terms in your Founding Member Charter.
This is NOT a performance guarantee. Investing involves risk including loss of principal. Fee credits do not guarantee investment results. Scorecard targets are objectives, not promises.
What's NOT Included
Read the full Charter document outlining terms, capacity, scorecard, fee protection, and disclosures.
Limited to 25 members or $100M AUM. Terms lock after capacity is reached.
Three wealth-killers that interrupt compounding momentum
Selling winners to fund lifestyle triggers capital gains, estate, and ordinary income taxes—permanently reducing your capital base.
Needing cash forces you to sell at the market's timing, not yours—often during downturns when recovery matters most.
Every dollar extracted is a dollar that can't compound. Over decades, the opportunity cost is massive.
Leverage without an edge is gambling. We start with the edge.
The Edge: Proprietary Strategies
High current cash flow with downside protection
Target: 15-25% yield with principal preservation mechanisms
Protected growth with asymmetric upside
Target: 12-18% net returns with floor/cap structures
💡 These strategies are the source of alpha. The chassis amplifies it.
The Scaling Vehicle: Buy, Borrow & Die
⚠️ The chassis requires $1M/year minimums, underwriting, and operational complexity.
When you're ready to scale, this is how the PPLI + premium financing chassis amplifies the edge from ECFS + EPIG 500.
Note: The chassis assumes $1M/year premium capability, collateral adequacy, and underwriting approval. Most clients validate engines first.
What happens: Fund a premium-financed Private Placement Life Insurance (PPLI) policy targeting tax-advantaged growth. Premium schedule default: $1,000,000 per year for 5 years (Years 1–5). Total premium example: $5,000,000 total over 5 years. With 80% premium financing, typical Year 1 shows ~$4M financed, ~$1M client cash.
Note: PPLI minimums vary by carrier/platform; this $1M/year example is illustrative and may not meet every platform's minimum. Actual qualification depends on net worth, carrier underwriting, and lender terms.
This strategy uses a Private Placement Life Insurance (PPLI) policy as the wrapper/chassis. The policy's separate account must remain adequately diversified to preserve intended tax treatment, under IRC §817(h) and Treas. Reg. §1.817-5, tested on a periodic (generally quarterly) basis.
Diversification Compliance: Diversification rules generally limit concentration and may apply via look-through to underlying funds/vehicles, depending on structure. To support diversification and risk control, we use a multi-sleeve allocation design (illustrative) implemented through compliant investment options.
Illustrative – Actual allocation varies by eligibility, carrier platform, and compliance constraints.
| Sleeve | Weight | Expected Return |
|---|---|---|
| 1. EPIG (Enduring Principal Protected Income & Growth) | 45% | 20.0%* |
| 2. ECFS (Ekantik Cash Flow Strategy) | 20% | 30.0%* |
| 3. Treasuries | 15% | 4.0%* |
| 4. Cash | 10% | 2.0%* |
| 5. Blue Chip Fund | 10% | 10.0%* |
| Blended Portfolio Return | 100% | 16.80%* |
*Expected returns are illustrative assumptions only. Not guaranteed. Actual results vary.
Sleeves are implemented using compliant investment options inside the PPLI separate account; underlying holdings must satisfy diversification requirements.
This is educational; not tax/legal/investment advice; not an offer. Diversification compliance must be validated by qualified tax/legal counsel.
Plain English: A lender may fund a portion of premiums via a loan. Client posts collateral and pays interest (usually current). This can reduce upfront out-of-pocket cash but adds leverage and introduces collateral-call and rate risks.
Default posture (no PIK); prevents compound debt growth
12–24 months of interest payments in liquid reserves
Tied to Spread Cushion + Total LTV + Reserve adequacy
Pause draws → rebuild reserve → partial de-lever/refinance options (terms vary)
What investments power the compounding inside your PPLI wrapper? We offer two proprietary strategies designed for different risk/return profiles.
Both strategies can work within guardrailed BBD. EPIG 500 optimizes for policy growth (higher "g" in spread cushion calculation). ECFS provides optional quarterly liquidity, reducing need for policy loans. Your advisor will help model which fits your goals and guardrail parameters.
The Guardrails: Borrow only when LTV stays 25–35%, spread cushion (growth minus loan rate) exceeds 200–300 bps buffer, and you maintain 12–24 months of interest reserves.
The Exit: Death benefit pays off the loan balance. Remaining value passes tax-efficiently to heirs or designated beneficiaries.
We define annual targets before you commit. If we don't hit the objectives, we credit or waive next year's program/advisory fee per your Charter. This is NOT a performance guarantee. These are objectives, not promises.
Important Compliance Disclosure
Scorecard targets are objectives and benchmarks, not guaranteed returns. Investing involves risk including loss of principal. Fee credits/waivers apply to future program fees only; they do NOT refund losses or guarantee results. Past performance is not indicative of future results. Markets can and will underperform. Tax law can change. Review the full Charter and consult your advisors.
Market Participation in Up Markets
Target: participate meaningfully when benchmark is positive (e.g., capture 70%+ of S&P 500 upside in up years, defined methodology in writing)
Capital Preservation / Smaller Drawdowns in Down Markets
Target: non-negative or materially smaller drawdown vs benchmark in down years (e.g., -5% vs -20% S&P, measurement bands defined in writing)
Benchmark bands, measurement methodology, and fee credit/waiver mechanics defined in your written Scorecard addendum.
Target 2% Annual Yield
Measured as cash flow distributed to you annually, net of fees and costs. Measurement method and qualification criteria defined in writing.
Capital Stability
NAV volatility target (e.g., < ±5% annually) and principal preservation priority. Definition and measurement bands in writing.
Yield measurement, NAV methodology, and fee credit/waiver mechanics defined in your written Scorecard addendum.
Scorecard Defined Before You Start
Your Founding Member Charter includes a written Scorecard addendum with targets, measurement methods, and time periods.
Annual Review Against Targets
At year-end, we measure actual performance against the defined Scorecard objectives using the agreed methodology.
If Objectives Not Met: Credit Next Year's Fee
Per Charter terms, we credit or waive the next year's program/advisory fee. (Does NOT refund losses; NOT a performance guarantee.)
Transparency + Accountability
Quarterly reporting shows progress toward targets. You always know where you stand.
What Fee Protection Does NOT Cover:
Four metrics that determine whether you can borrow, must pause, or need to de-risk
Keep borrowing low relative to policy value. If LTV exceeds target, stop new draws.
Maintain cash reserves to pay interest for 12–24 months without borrowing more.
Your investment return must exceed your loan cost by at least 2–3%. If not, stop borrowing.
If policy value drops significantly (e.g., -20%), freeze all new borrowing until recovery.
Automatic circuit breakers that protect you when assumptions break
Pay loan interest as it accrues—no payment-in-kind (PIK) in early years.
Maintain 12–24 months of interest payments in liquid reserves.
If LTV or covenant breach occurs, you may need to post additional collateral or de-lever within specified timeframe.
This is an underwriting tool, not a sales tool. Stress-test assumptions and see what breaks before you commit. The simulator shows when guardrails trigger—that's a feature, not a bug.
This simulator is designed to show you failure modes, not just success cases.
If the simulator suggests "Pause" or "Freeze," the guardrails are working.
That's the system protecting you from forced selling or collateral calls.
⚠️ Illustrative only. Actual performance will vary. Not a guarantee.
Example: 5,000,000 = $5 million
Recommended: 25-35% of policy value. Example: 1,750,000 = 35% of $5M
Formula: r_BLEND = Σ (wi × ri) where Σwi = 100%
Years 1-N: Active engine strategies (ECFS + EPIG 500).
Years N+: Transition to diversified index (SPY-like) for long-term sustainability.
How many years to use active engine returns before transitioning to index
Target blended return during active engine phase
Long-term index return assumption (historical SPY ~10%)
PPLI carriers have varying minimum premium requirements. Use this to verify your scenario meets common thresholds.
IMPORTANT: This is NOT a carrier illustration. Actual death benefit depends on underwriting, corridor rules, charges, and carrier pricing.
Option B: DB = Specified Amount + Cash Value
Optional: Additional death benefit beyond policy value. Often $0 for max accumulation.
IRC §7702 requires minimum death benefit (corridor factor) based on age
Shows side-by-side comparison: Two-phase engines vs SPY-only for all 30 years
Adjust assumptions and click Calculate to see your projections
Stop new borrowing until LTV or spread cushion improves
Severe drawdown detected; preserve reserves and avoid new leverage
Hard cap breach; mandatory de-lever or collateral call imminent
These are features. The guardrails exist to prevent catastrophic outcomes.
If the simulator shows frequent Pause/Freeze triggers, the strategy may not be suitable for your risk tolerance or return assumptions. That's valuable information before committing $1M/year.
Transparency first. Here's what can go wrong, how the guardrails respond, and when we pull the kill switch.
What happens: Investment returns fall short of projections. Spread cushion shrinks or goes negative.
What happens: Market crash causes policy value to drop sharply (e.g., -20% or worse). LTV spikes.
What happens: Reference rates (SOFR, etc.) jump higher. Your loan cost increases, spread cushion shrinks.
What happens: Policy carrier rating downgrade, lender changes terms, or availability disruption.
What happens: Tax laws change. IRC §7702 rules modified. Policy loses favorable tax treatment.
What happens: You can't pay current interest due to personal cashflow disruption.
We don't promise guarantees. We engineer risk controls. This strategy works best when growth exceeds borrowing cost with margin to spare—and when you have the discipline and resources to maintain the guardrails. If assumptions break, we stop, reassess, and protect capital. That's the difference.
This strategy demands discipline, resources, and active engagement—not just capital
You must pay loan interest current (especially in early years) without relying on further borrowing. Income disruptions require immediate mitigation plans.
Maintain 12–24 months of interest reserves at all times. If reserves fall below minimum, you must rebuild before any new borrowing. No exceptions.
Understand and accept that market downturns may trigger collateral calls or cure windows (30–90 days). You need liquidity options or additional collateral.
When guardrails trigger PAUSE or FREEZE, you must comply immediately. Ignoring triggers accelerates risk and defeats the system.
Compliance Requirement
Diversification compliance is tested periodically (generally quarterly) and structure must be validated by qualified tax/legal counsel. IRC §817(h) and Treas. Reg. §1.817-5 requirements are complex and non-negotiable for preserving tax treatment.
When guardrails breach hard caps or lender covenants trigger, we execute a systematic de-risk protocol. This is not optional—it's part of the underwriting.
Stop all new liquidity draws immediately. Preserve capital for interest coverage.
Restore 12-24 months of interest reserves from external sources or policy distributions.
Partial de-lever: repay PF loan or liquidity loan to bring Total LTV below hard cap (45%).
Recalibrate sleeve returns, loan rates, and guardrail settings. Stress-test new baseline.
Evaluate: refinance PF loan at lower rate, extend balloon term, or pivot to alternative structure. Terms vary by lender, carrier, and market conditions.
Kill switch execution may require additional capital, collateral top-ups, or liquidation of external assets. This is not advice—consult your legal, tax, and financial advisors.
Important: This strategy requires comprehensive underwriting including financial statements, tax returns, investment policy statement, estate plan review, and carrier/lender approval. Not everyone will qualify. The strategy must fit your specific situation—we won't force a square peg into a round hole.
Browse by category or expand sections to explore comprehensive answers
Founding Members get locked pricing, scorecard-based fee protection, and priority access until capacity caps are reached (25 members or $100M AUM). Once either cap is hit, new entrants may face different pricing/terms. It's a soft launch opportunity to lock in favorable terms early.
Your Scorecard defines annual performance objectives (not guarantees) for ECFS and EPIG 500. Example: EPIG 500 might target meaningful market participation in up years and smaller drawdowns in down years; ECFS targets 2% yield. If objectives aren't met, we credit/waive next year's program fee. Targets are objectives, not promises.
COVERS: If Scorecard objectives aren't met, we credit/waive next year's ECA program/advisory fee. DOES NOT COVER: Investment losses, custody/trading fees, premium financing interest, PPLI carrier charges, tax/legal fees. This is NOT a performance guarantee or refund policy. It's accountability for our part of the equation.
Yes. Most Founding Members start with ECFS/EPIG 500 validation in taxable accounts or trusts. Once you've validated returns, operational fit, and the edge is proven, you can transition to the BBD chassis (PPLI + premium financing + guardrails) when you're ready. No pressure to commit upfront.
Your locked Founding Member pricing and Charter terms continue indefinitely (until you terminate the relationship). Once either capacity cap is hit (25 members or $100M AUM), new entrants may face different pricing/terms, but YOUR terms stay locked. First-mover advantage.
Engine Validation is a lower-friction starting point where you validate ECFS + EPIG 500 strategies (the "engines") with smaller allocations before committing to $1M/year PPLI premiums. BBD Readiness assumes you're near the premium capability, comfortable with leverage, and ready for institutional underwriting. Most clients start with validation.
Yes. ECFS and EPIG 500 are standalone proprietary strategies. You can deploy them in taxable accounts, trusts, or other structures without PPLI. The BBD chassis (PPLI + premium financing) amplifies tax efficiency and scaling potential, but it's optional. Validate the engines first.
That's valuable information. It means the strategy may not suit your return assumptions, risk tolerance, or liquidity needs. Frequent guardrail triggers suggest you should either: (a) lower your borrowing assumptions, (b) increase your return expectations (if justified), or (c) skip BBD and deploy ECFS/EPIG 500 standalone. The simulator is designed to reveal failure modes—use it.
Traditional BBD often lacks explicit guardrails and can lead to over-leverage. Our approach adds hard LTV caps (25–35% target, 45% max), spread cushion requirements (2–3% buffer), mandatory interest reserves (12–24 months), and automatic stop-borrow triggers. If the math breaks, we pause—not accelerate.
Private Placement Life Insurance (PPLI) is a tax-advantaged insurance wrapper that lets you invest in diversified assets while growth compounds tax-deferred (and death benefit is potentially tax-free). It's designed for accredited investors seeking tax efficiency.
Not guaranteed. Potentially tax-advantaged, depending on structure and laws. Growth inside a properly-structured life insurance policy is tax-deferred. Death benefits under IRC §101(a) are generally income-tax-free, but tax laws can change. Not advice—consult your tax advisor.
Yes, it's legal when structured correctly. Life insurance tax benefits (IRC §7702, §101(a)) and borrowing against assets are well-established. We use conservative structures and qualified advisors to stay well within legal boundaries. This is efficient, not aggressive. But tax laws can change—annual reviews essential.
Your 12–24 month interest reserve is designed for this scenario. You tap reserves to cover payments temporarily. If reserves run low, you must rebuild them or consider partial loan repayment. Avoid capitalizing interest (PIK) if possible—it accelerates debt growth.
The drawdown trigger (e.g., -20%) would activate, freezing all new borrowing. You'd continue paying interest from reserves but stop increasing leverage. The goal: preserve liquidity and wait for recovery rather than forced selling at the bottom. If LTV approaches the hard cap, you may need to post additional collateral or de-lever.
PPLI policies are designed to age 100+. If you live longer than expected (great news!), the policy continues. You may need to adjust borrowing, make additional premium payments, or reduce loan balance to ensure policy stays in force. Annual reviews help manage this.
PPLI has insurance charges (mortality, administrative), investment management fees inside the policy (vary by underlying funds), potential premium financing costs, and loan interest. Total costs typically range 1.5–3%+ annually depending on structure. Costs reduce net growth rate (which is why we stress-test scenarios).
PPLI policies have surrender charges (especially early years) and loan repayment obligations. Exiting early can be expensive and may trigger taxes. This is a long-term (multi-decade) strategy. If you need short-term flexibility, this isn't the right approach.
Plan for 3–6+ months. Steps include: initial strategy session, financial underwriting, insurance underwriting (medical exams, etc.), legal review (estate structures), carrier approval, lender approval, policy issuance, and funding. Complex cases take longer.
Typically $5M+ liquid net worth and $2M+ policy face amount. PPLI economics and premium financing work better at scale. Smaller cases may not justify the complexity and costs. Each situation is unique—we'll assess feasibility during qualification.
Loans can come from the insurance carrier (policy loan) or an external lender (collateral assignment). Policy loans often have simpler terms but may affect death benefit. External lenders may offer better rates but require more underwriting. We'll help structure the optimal approach for your situation.
Founding Member or BBD Readiness. No pressure. No wrong answer. Start where you're comfortable.
Validate ECFS + EPIG 500 first. Locked Founding Member terms until capacity caps.
For those already near the $1M/year capability.
⚠️ Educational only. Not tax/legal/investment advice. Underwriting required. Premium financing uses leverage; collateral calls possible; rates can rise; lender/carrier terms can change; tax laws can change. Projections are hypothetical; results vary; past performance not indicative.
Schedule your 30-minute strategy call to discuss:
Founding Member status, engine validation, or BBD readiness.
No obligation. No pressure. Just a conversation.