How High Earners Build Wealth with Safe Positive Leverage

As a high-income earner, you’ve probably noticed something troubling as your career has advanced:

The higher your paycheck climbs, the less freedom you seem to have.

• A bonus arrives, and nearly half disappears into taxes.

• Your 401(k) grows, but you can’t touch it without penalties.

• Your portfolio rises and falls with the market, leaving you rebuilding after every downturn.

You’ve done what conventional wisdom says is right, yet you feel boxed in by taxes, restrictions, and volatility.

What you really want is to:

1. Keep more of what you earn instead of watching it vanish to the IRS.

2. Grow wealth without setbacks from market corrections.

3. Have flexible access to your money when opportunities arise.

Safe Positive Leverage™ (SPL) is a strategy built to solve exactly these challenges. The strategy lets your money keep compounding in a protected account—even as you borrow against it to fund opportunities or income. In effect, each dollar does two jobs at once: growing uninterrupted while also providing flexible, tax-advantaged access.

To get Safe Positive Leverage™, we use a 7702 Account (a properly designed Indexed Universal Life policy). This combines protection, tax efficiency, and growth in a way that traditional accounts simply cannot.

Why Traditional Plans Hold You Back

Most high-income professionals default to maxing out their 401(k) or stock plans. On the surface, it feels disciplined. But the reality of these plans is that they are:

• Tax-deferred, not tax-free. Every withdrawal is taxed at ordinary income rates, which could be higher in the future.

• Rigid and illiquid. Need cash before 59½? You’ll pay penalties. Wait too long, and required minimum distributions force you to pull money whether you want to or not.

• Volatile. One market downturn can erase years of progress.

Have you ever looked at your 401(k) statement and thought, This doesn’t really feel like my money?

That’s the frustration of relying on tools designed for the broad middle, not top earners.

How Safe Positive Leverage™ Changes the Game

Safe Positive Leverage™ is the strategy of allowing your money to keep compounding in a protected account—even as you borrow against it to fund opportunities or income. In other words, each dollar does two jobs at once: it continues earning safely inside your account while also giving you flexible, tax-advantaged access to capital outside of it.

You get Safe Positive Leverage™ with a maximum funded Indexed Universal Life insurance policy. We call this a “7702 plan” because the guidelines for its creation are found in Section 7702 of the IRS code.

Here’s what it provides:

• Uninterrupted Compounding. With a contractual 0% floor, your money never loses value in a downturn. Gains lock in each year, so you never rebuild lost ground.

• Tax-Free Growth and Access. Your cash value grows tax-deferred, and distributions through policy loans are income-tax free.

• Liquidity on Demand. Access capital at any age without penalties, applications, or government restrictions.

• Dual Compounding. Borrow against your account while it continues compounding, effectively earning in two places at once.

To see this in practice, imagine a high-earning professional who wants to invest in a real estate property.

Instead of pulling money out of their savings or 401(k), they borrow against the cash value in their 7702 Account. Their cash value keeps compounding at its credited rate with dividends inside the account—completely untouched. Meanwhile, the borrowed funds are deployed into the real estate investment.

The rental income or appreciation from that property then helps repay the policy loan. The client ends up with both a growing cash value inside their account and an appreciating asset outside of it.

This is the essence of Safe Positive Leverage™: building wealth that doesn’t stall, diversifying into opportunities without interrupting growth, and gaining the kind of flexibility most high earners never experience in traditional plans.

This is not about chasing higher returns. It’s about structuring wealth for efficiency, protection, and control.

The Mechanics in Three Steps

Despite its sophistication, SPL is straightforward:

1. Fund a 7702 Account. Contribute after-tax dollars, designed for maximum cash value and minimum insurance cost.

2. Grow with Protection. Your account compounds tax-deferred with a 0% floor. Gains lock in annually, and losses never reduce principal.

3. Leverage for Dual Compounding. Borrow against your cash value while it continues compounding, giving each dollar two jobs.

It’s a design that provides growth, access, and security at the same time.

Get Even More Leverage with the Safe Positive Leverage Match™

Some professionals take this strategy further through what’s called a Safe Positive Leverage Match™, or SPL Match™.

After you have contributed to your account for two to three years, the insurance company may begin adding its own money alongside yours.

They lend additional funds into your account, secured by the cash value you have already built. Those borrowed funds go right back into the same account and compound just like your own contributions.

The advantage comes from the spread. If your account averages seven percent growth and the cost of the loan is four percent, you capture the three percent difference on money that is not even yours.

Over time, this can raise your effective rate of return from the typical seven percent range into double digits.

The result is faster compounding, larger future cash value, and a much higher potential stream of tax-free retirement income compared to relying on your contributions alone.

Safety is built into the design. Your base account has a guaranteed zero percent floor, which means no market downturn can reduce your principal.

The leverage is applied only to an asset that never goes backward. Even if a year posts no gains, the interest on the company’s loan is simply added to the balance and settled later from the policy’s death benefit.

You are never required to make out-of-pocket payments to keep the system in place.

In effect, SPL Match™ allows you to clone your dollars. Your own money continues compounding uninterrupted, while the insurance company’s dollars do the same work right alongside it.

This acceleration has the potential to transform a good plan into a great one. It can turn a million-dollar nest egg into retirement income that can be several times greater than traditional strategies provide.

Why High Earners Are Turning to Safe Positive Leverage™

For high-income professionals, business owners, and investors, the appeal of Safe Positive Leverage™ is clear:

• Lower taxes. Create a pool of tax-free income to reduce reliance on taxable 401(k) withdrawals.

• Greater control. Stop letting government timelines dictate when you can access your own money.

• Diversification beyond employer plans. SPL balances concentrated stock or retirement accounts with a protected growth vehicle.

• More spendable retirement income. With SPL, $1M can generate $90K–$120K of annual tax-free income compared to $40K taxable under the “4% rule.”

If you’ve ever wondered why your income rises but your flexibility shrinks, SPL offers a path back to control.

Two Executives, Two Retirements

Consider two executives, each earning $400K annually and saving diligently.

• Executive A: Keeps maxing 401(k) contributions. At 72, required distributions kick in, creating a large taxable income stream. Market swings continue to chip away, and access is limited.

• Executive B: Allocates part of savings into a 7702 Account with SPL. Their wealth compounds without interruption. Income is drawn tax-free. Capital remains accessible throughout life for business, family, or investment opportunities.

Both worked hard. Both saved. Only one built a system that created control and confidence instead of restrictions.

Proof: Why Institutions Quietly Use It

This strategy may be new to you, but it’s not new. In fact, it’s the same structure used by banks and corporations:

• Banks: U.S. banks collectively hold more than $205 billion in 7702-based policies, often called Bank-Owned Life Insurance (BOLI). They rely on it for tax-advantaged growth and liquidity.

• Corporations: Many Fortune 500 companies fund executive pensions and benefits through these accounts.

The takeaway? Safe Positive Leverage™ isn’t theory. It’s a proven structure used by the institutions that manage wealth on the largest scale.

Misconceptions That Hold Professionals Back

“Isn’t this just expensive life insurance?”
Not when designed for SPL. The insurance component is minimized, costs are contained, and the bulk of your money goes to compounding growth. Over time, costs are often far less than advisory fees or the tax drag on investments.

“Won’t the stock market outperform?”
Market averages look attractive, but averages ignore losses. A single 30% drop can cost years of progress. SPL eliminates losses altogether with its 0% floor, creating a smoother and often stronger compounding curve.

“If it’s so powerful, why hasn’t my advisor shown me?”
Most advisors earn fees on assets under management. SPL moves money into a structure they don’t manage, so it’s rarely presented even though it may be in your best interest.

Take Back Control of Your Earnings

If you’re frustrated by paying more in taxes as your income grows, the 7702 Financial Control Blueprint is your next step. This guide shows how high W-2 professionals are using Safe Positive Leverage™ to reduce lifetime taxes, escape the limits of employer plans, and turn savings into flexible, tax-free income.

Download the 7702 Financial Control Blueprint now.