FlexVault Design Principles
The four integrated components that transform standard IUL into a 12%+ target return wealth-building system.
FlexVault's four-component design integrates: (1) a well-built max-funded IUL foundation for 6-8% tax-free growth, (2) strategic active management adding 1-3%, (3) advanced tax planning optimization adding 0-3%, and (4) portfolio integration leverage adding 1-4%. These components work synergistically to target 12%+ combined returns—significantly higher than traditional 'set it and forget it' IUL approaches.
At a Glance
| Component 1 | IUL Foundation: 6-8% |
| Component 2 | Active Management: +1-3% |
| Component 3 | Tax Planning: +0-3% |
| Component 4 | Portfolio Integration: +1-4% |
| Combined Target | 12%+ average returns |
How each component contributes to the FlexVault target
Component Return Breakdown
| Component | Return Range | Source |
|---|---|---|
| 1. Well-Built IUL Foundation | 6-8% | Index-linked crediting with floor |
| 2. Strategic Cash Value Guidance | +1-3% | Active optimization & management |
| 3. Advanced Tax Planning | +0-3% | Tax efficiency & coordination |
| 4. Portfolio Integration | +1-4% | Leverage & dual growth |
| Combined Target | 12%+ | Four-component synergy |
The base layer that makes everything else possible
Component 1: Well-Built IUL Foundation
What Makes an IUL "Well-Built"?
- Max-Funded to MEC Limits: Contributes the maximum allowed without becoming a Modified Endowment Contract
- Guideline Premium Test (GPT): Uses the GPT design for optimal cash value accumulation
- Optimal Index Selection: Diversified index strategies with appropriate caps and floors
- Premier Carrier: Placed with carriers proven over decades of performance
Expected Performance Range
Gross index crediting: 7-10%
Less policy costs: -1-2%
Net cash value growth: 6-8%
This is the foundation. Components 2-4 build on top of this base.
Active management that separates FlexVault from 'set it and forget it'
Component 2: Strategic Cash Value Guidance
Loan-to-Value Optimization
Monitor and optimize the ratio of loans to cash value to maximize growth while maintaining safety margins.
Carrier Negotiation
Leverage relationships to secure better crediting rates, reduced charges, and enhanced policy features.
Annual Strategy Reviews
In-depth annual reviews to adapt strategy based on performance, life changes, and market conditions.
Premium Optimization
Timing and sizing of premium payments to maximize cash value growth and minimize drag.
Component 2 adds +1-3% through active optimization
Most IUL agents sell a policy and never touch it again. FlexVault includes ongoing management as a core feature.
Strategic tax optimization that reduces costs and maximizes efficiency
Component 3: Advanced Tax Planning
Equity Access Cost Reduction
30-40% reduction in the effective cost of accessing your wealth through strategic distribution timing.
Income Timing Coordination
Coordinate FlexVault distributions with other income sources to minimize overall tax burden.
Medicare Premium Management
Strategic income management to avoid IRMAA surcharges and reduce Medicare premiums.
Roth Conversion Coordination
Optimize the interplay between FlexVault distributions and Roth conversions for maximum tax efficiency.
Estate Tax Planning
Structure death benefits and trusts to maximize wealth transfer and minimize estate tax exposure.
Component 3 adds +0-3% through tax efficiency
The range depends on your tax bracket and other income sources. High earners see the largest benefit.
The dual growth mechanism that accelerates wealth building
Component 4: Portfolio Integration Leverage
How Dual Growth Works
Inside the Policy
Your cash value continues growing at 6-8% even when you borrow against it.
$500,000 cash value @ 7% = $35,000/year growth
Outside the Policy
Borrowed funds invested in external assets (real estate, business, diversified portfolio).
$200,000 invested @ 8% = $16,000/year growth
Same $500K generating $51,000/year in dual growth
Net of 5% loan interest on $200K = $10,000 cost
Component 4 adds +1-4% through leverage
Why the whole is greater than the sum of its parts
The Synergy Effect
The four components don't just add up—they multiply each other's effectiveness. Tax planning makes leverage more efficient. Active management optimizes all components. The foundation enables everything else.
6-8%
IUL Foundation
+1-3%
Active Management
+0-3%
Tax Planning
+1-4%
Leverage
= 12%+ Combined Target
Frequently Asked Questions
See the Four Components Applied to Your Situation
Every component contributes differently based on your income, tax bracket, and goals. Let's model your specific scenario.