Various Financial Alternatives VS. Premium Finance Strategy Municipal Bond Fund Yield
Equity Account Growth
Equity Account Dividend
Annuity Account Yield
Life Policy Interest Rate
Initial Death Benefit
Income Tax Rate
6.50%
5.00%
1.50%
6.50%
6.50%
$10,498,016
35.00%
Invest VS. Interest Payment
After Tax Values of Various Financial Alternatives Same Return
Year
Bank Financed Premium
Interest Payment
After Tax Cash Flow MBF
Year End Value MB Fund
After Tax Year End Cash Flow Value Equity Equity Acc Acc
1
$430,000
$16,684
$0
$17,591
$0
2
$430,000
$27,090
$0
$47,109
$0
3
$430,000
$40,635
$0
$92,513
4
$430,000
$54,180
$0
$154,666
5
$430,000
$68,370
$0
6
$430,000
$83,850
7
$430,000
8
$0
9
$0
10
Life Policy Performance
After Tax Cash Flow Annuity
Year End Value Annuity
After Tax Policy Loans
Year End Cash Sur Value
Death Benefit
$17,518
$0
$17,273
$0
$88,983
$10,498,016
$46,823
$0
$45,941
$0
$507,010
$10,911,896
$0
$91,777
$0
$89,676
$0
$958,579
$11,359,116
$0
$153,125
$0
$149,038
$0
$1,446,376
$11,842,361
$235,158
$0
$232,319
$0
$225,288
$0
$1,973,201
$12,364,534
$0
$336,346
$0
$331,545
$0
$320,407
$0
$2,542,191
$12,928,770
$99,330
$0
$459,355
$0
$451,738
$0
$435,129
$0
$3,156,734
$13,538,458
$102,039
$0
$591,906
$0
$580,452
$0
$557,001
$0
$3,432,574
$13,769,791
$103,845
$0
$733,565
$0
$717,084
$0
$685,425
$0
$3,726,947
$14,019,760
$0
$105,350
$0
$884,510
$0
$861,633
$0
$820,411
$0
$4,041,558
$14,289,864
11
$0
$105,350
$0
$1,043,659
$0
$1,012,836
$0
$960,731
$0
$4,377,825
$14,581,727
12
$0
$106,855
$0
$1,213,044
$0
$1,172,527
$0
$1,108,230
$0
$4,737,705
$14,897,101
13
$0
$0
$0
$1,278,973
$0
$1,227,273
$0
$1,151,084
$0
$1,940,174
$11,736,601
14
$0
$0
$0
$1,348,485
$0
$1,284,049
$0
$1,196,267
$0
$2,125,973
$11,578,576
15
$0
$0
$0
$1,421,775
$0
$1,342,976
$0
$1,243,905
$0
$2,329,704
$11,412,650
16
$0
$0
$0
$1,499,049
$0
$1,404,176
$0
$1,294,133
$0
$2,573,902
$11,238,427
17
$0
$0
$0
$1,580,522
$0
$1,467,775
$0
$1,347,090
$0
$2,840,293
$11,055,493
18
$0
$0
$0
$1,666,423
$0
$1,533,902
$0
$1,402,926
$0
$3,130,718
$10,863,413
19
$0
$0
$0
$1,756,994
$0
$1,602,690
$0
$1,461,796
$0
$3,446,972
$10,661,729
20
$0
$0
$496,359
$1,329,150
$496,359
$1,127,596
$496,359
$1,000,531
$496,359
$3,266,785
$9,928,783
21
$0
$0
$496,359
$878,053
$496,359
$629,197
$496,359
$521,983
$496,359
$3,087,588
$9,159,190
22
$0
$0
$496,359
$402,439
$496,359
$106,769
$496,359
$26,350
$496,359
$2,910,884
$8,351,118
23
$0
$0
$402,439
$0
$100,358
$0
$26,350
$0
$496,359
$2,738,423
$7,502,642