Sentences with phrase «positive arbitrage»

This creates an opportunity for positive arbitrage on your policy loans.

If the indexed account performs well, there is an opportunity for positive arbitrage on the borrowed funds.

But large banks, corporations and wealthy individuals use properly structured life insurance contracts to obtain tax benefits, increase yields on cash, reduce borrowing costs and create positive arbitrage on equity loans.

If you plan to actively use your life insurance as your personal bank you may find that non-direct companies provide a better place to store your money, since you have a better chance of earning positive arbitrage in contrast to direct recognition companies.

If you plan to actively use your cash in your policy you may find that non-direct companies provide a better place to store your money, since you have a better chance of earning positive arbitrage in contrast to direct recognition companies.

You may even find that with the dividend you are getting positive arbitrage on the cash you borrow.

If you are paying a loan rate of 4.5 % or even 5 %, you are still earning positive arbitrage of nearly 2 % in the worst year.

Some participating whole life policies (i.e. the ones that pay dividends) and some indexed universal life insurance policies will have positive arbitrage between what your loan rate from the company is and what your policy is growing at.

If the asset has a decent yield, you may even find that you can create positive arbitrage with your permanent life insurance policy loan.

This is beneficial in times of high interest indexed earnings since positive arbitrage can be achieved between borrowed funds and cash value in the indexed account.

The property is cash flow positive and you are making positive arbitrage on your policy loan.

McKnight does mention variable rate loan provisions and the possibility of gaining positive arbitrage with policies that have this feature.

There are three interest rates on life insurance loans providing the opportunity for a net zero cost loan or even positive arbitrage.

Now, you may even be able to increase the benefit of taking out that positive arbitrage loan by investing the borrowed money from your cash value into an investment vehicle that yields a rate of return.

This can be a big deal when your growth is high because you can borrow against your cash value and earn positive arbitrage due to your borrowed balance still earning interest crediting.

You may even find that with the dividend you are getting positive arbitrage on the cash you borrow.

Another option is to borrow from a local bank using your cash value as collateral that might provide more favorable terms on your loan, increasing your potential for positive arbitrage.

You can also use your policy's cash value as collateral to borrow money from a bank if you find a superior loan option, creating positive arbitrage.

This is beneficial in times of high interest indexed earnings since positive arbitrage can be achieved between borrowed funds and cash value in the indexed account.

This creates an opportunity for positive arbitrage on your policy loans.

The alternate loan option provides the benefit of indexed crediting on the portion of the cash value used as collateral for the loan, giving you the opportunity to earn positive arbitrage.

If the dividend is 1.5 - 2.5 %, then you have positive arbitrage of 1 - 3 %.

Only when you've done enough testing to figure out how to create a positive arbitrage between how much you pay to acquire the customer and how much revenue the customer is likely to generate should you throw big money at a roll - out.

If your rental property goes up in value during the year by 5 %, you can add an additional 2 % on top of that because of the positive arbitrage.

However, as mentioned above, your money is still at work in the policy and also in any asset you choose to invest in, creating the potential for positive arbitrage.

Another option is to borrow from a local bank that might provide more favorable terms on your loan, increasing your potential for positive arbitrage.

It gets better because you also can get a positive arbitrage on your borrowed funds.

Plus, it is very possible that the interest rate you are charged is lower than the rate your earn in your policy, plus dividends, resulting in positive arbitrage.

In the real world, it is easily attainable to get a positive arbitrage on borrowed funds using whole life insurance as an investment.

So if the the company charges 5 % for a policy loan, you stand to make 1 - 1.5 % positive arbitrage on the cash value policy loan.

So you take the original 1 - 1.5 % positive arbitrage and invest it in an income producing property yielding a return of say 6 % or more, not including deductions and depreciation.

So we mentioned a potential big pro above with positive arbitrage.

It gets better because you also can get a positive arbitrage on your borrowed funds.

However, as mentioned above, your money is still at work in the policy and also in any asset you choose to invest in, creating the potential for positive arbitrage.

Typically, this correlation will produce a positive arbitrage in the financing structure.

Plus, it is very possible that the interest rate you are charged is lower than the rate your earn in your policy, plus dividends, resulting in positive arbitrage.

Another option is to borrow from a local bank that might provide more favorable terms on your loan, increasing your potential for positive arbitrage.

A positive arbitrage will create a hedge against interest rate volatility.

You can also use your policy's cash value as collateral to borrow money from a bank if you find a superior loan option, creating positive arbitrage.

If the indexed account performs well, there is an opportunity for positive arbitrage on the borrowed funds.

I think that as long as you keep a positive arbitrage, the math will always work out in favor of higher leverage.