How the Wealthy Minimize Taxation with “Buy, Borrow, Die”

Imagine a wealth strategy that lets you grow without interruption, access liquidity without penalties, and transfer everything to your family without taxes.

It sounds almost too efficient to be real. But it is exactly how billionaires, banks, and even presidents have quietly managed their fortunes for decades.

It’s called the “Buy, Borrow, Die” strategy.

This three-step framework is embedded in the U.S. tax code and has been refined across generations of the wealthy:

1. Buy: You purchase assets designed for uninterrupted compounding.

2. Borrow: You borrow against them instead of selling.

3. Die: Then transferring wealth with a step-up in basis, the affluent create a cycle of tax-free growth, tax-free living, and tax-free legacy.

Here’s the surprising truth: while this method has often been reserved for the ultra-wealthy, it can also be adapted for high-income professionals who feel constrained by traditional planning.

Are you tired of overpaying the IRS, watching gains disappear to volatility, or being told to “wait until retirement” to enjoy your own money? Then this may be the single most important financial shift you ever consider.

Why Traditional Planning Shortchanges High Earners

For most high-income earners, traditional planning is not just inefficient, it is actively working against them.

1. Taxes eat first. Every paycheck, bonus, and stock option is taxed at the highest rates. Even “tax-advantaged” accounts like 401(k)s only delay the problem. Withdrawals later are fully taxable, often at higher future rates.

2. Accounts are rigid. Withdraw before 59½ and you are penalized. Wait too long and the government forces withdrawals through Required Minimum Distributions. You have little say in how or when you access your own money.

3. Compounding stalls. Market volatility wipes out years of gains. Every reset forces you to waste time just clawing back to even. You lose years of progress you cannot recover.

4. Estate taxes loom. With the estate exemption set to shrink by half in 2026, high earners face the real prospect of watching millions vanish unnecessarily.

The result: despite discipline and high income, many professionals end up keeping far less than they should.

How the Wealthy Do It: Buy, Borrow, Die

The Buy, Borrow, Die strategy flips the script by focusing on uninterrupted compounding, tax-free access, and tax-free transfer.

1. Buy Assets for Uninterrupted Compounding

The wealthy place money into structures that guarantee steady growth without taxation.

One of the most powerful is the 7702 account—a maximum funded indexed universal life insurance policy structured for living benefits.

This means its purpose is to provide much more than just a death benefit. It also provides many benefits you can access and leverage while you’re alive to grow wealth.

Inside these accounts:

• Gains are locked in annually with a 0% floor.

• Principal is never lost in downturns.

• Growth compounds without interruption.

Instead of paying taxes along the way, wealth builds consistently year after year.

2. Borrow Against Assets for Liquidity

Rather than selling assets and triggering taxable events, the wealthy borrow against their accounts.

• Loans are income-tax-free.

• Borrowed funds come from the insurer’s reserves, not the policy balance, so compounding continues untouched.

• Repayment is flexible, and in many cases, loans are simply settled from the death benefit.

This creates tax-free liquidity to fund lifestyles, seize opportunities, or invest further, all without interrupting compounding.

3. Die to Transfer Wealth Tax-Free

The final step locks in the tax advantage permanently.

• At death, assets receive a step-up in basis, eliminating accrued capital gains for heirs.

• A 7702 insurance plan passes to beneficiaries 100% income tax-free.

• With proper trust structures, assets can also avoid estate taxation and creditor claims.

In one seamless system, the three biggest financial risks for high earners are neutralized: taxation, lack of liquidity, and estate erosion.

Why 7702 Accounts Are the Engine Behind the Buy, Borrow, Die Strategy

Section 7702 of the IRS Code outlines how life insurance contracts are taxed. When designed for maximum funding and minimum death benefit, a 7702 plan becomes a highly efficient wealth-building tool.

Key advantages include:

• Tax-free growth and access.

• No contribution caps like a 401(k) or IRA.

• Liquidity and control at any age, without penalties.

• 0% floor to protect principal and preserve compounding.

• Safe Positive Leverage™ (SPL). Borrow at capped or fixed rates while your account compounds at higher rates, creating multiple returns on the same dollar.

• Tax-free wealth transfer. The remaining value passes intact to heirs.

This is why banks quietly place billions of dollars into similar accounts. It is why presidents and billionaires rely on them.

And it is why Eastman Wealth Strategies has built a framework to help high earners use the same engine for their own advantage.

Who Actually Uses the Buy, Borrow, Die Strategy

This isn’t just theory, it’s a playbook already in use at the highest levels of wealth and power.

Prominent families have relied on insurance-based strategies for generations to preserve and transfer wealth efficiently.

Influential business leaders use borrowing against assets instead of selling to keep compounding intact while accessing liquidity tax-free.

Even major banks quietly allocate billions into life insurance structures, treating them as a cornerstone of their Tier 1 capital reserves.

When billionaires, Fortune 100 institutions, and family dynasties all turn to the same system, it’s worth asking: why wouldn’t today’s high-earning professionals explore the very same advantages?

Addressing Misconceptions of the Buy, Borrow, Die Strategy

“Isn’t this just expensive insurance?”
Not when designed properly. Costs are minimized by lowering death benefit and maximizing cash value. Over time, expenses shrink as a percentage of growth.

“Don’t stocks outperform?”
On paper, yes. In practice, volatility drag, taxation, and fees erode returns. A 7702 account delivers consistent compounding and preserves all gains, making net results more powerful.

“What about the loans?”
Loans are predictable, often capped or fixed, and can be repaid flexibly. Because the account continues to grow while borrowed funds are deployed, the spread creates Safe Positive Leverage™ rather than risk.

Why Now Matters

The timing could not be more important.

• In 2026, estate exemptions will be cut in half, potentially costing high earners millions.

• With record national debt, income tax hikes are all but inevitable.

• Market volatility continues to wipe out years of compounding for those tied exclusively to Wall Street.

For someone earning $500,000 annually, waiting could mean hundreds of thousands in avoidable taxes, or worse, a diminished legacy.

The Eastman Difference

At Eastman Wealth Strategies, we do not simply replicate what billionaires do. We refine it for high-income professionals who deserve more clarity and control.

• We design 7702 accounts for maximum efficiency.

• We apply our proprietary SPL-Match™ system to amplify compounding safely.

• We coordinate with CPAs and attorneys to ensure tax, retirement, and estate strategies work together.

• We build frameworks that deliver not only tax savings, but long-term confidence and legacy protection.

This is not a theory. It is the system we have used with families and professionals for decades, and it is the same approach institutions trust to safeguard billions.

Take the Next Step

You do not have to accept the inefficiencies of traditional planning. You do not have to keep overpaying the IRS while waiting for permission to use your own money. And you do not have to leave your family exposed to taxes and volatility.

The 7702 Financial Control Blueprint was created to show high-income professionals exactly how to apply the Buy, Borrow, Die strategy with clarity and confidence. Inside, you will discover:

• How 7702 accounts compare directly to 401(k)s and IRAs.

• How Safe Positive Leverage™ multiplies compounding without multiplying risk.

• How billionaires and banks are using the same principles you can adopt today.

Download the 7702 Financial Control Blueprint now.