Government rules define how much excess premium can be placed into the policy.You'll know that your policy is properly designed when the end of year cash value on your illustration is about 85-90% of the premium that you paid in Year 1.

@Peter Nikic, excellent illustration. 

(Not that I am getting a lot of holes, just illustrating a concept!)

If you want I am going through this now and happy to talk.Disclosure:This above is for information and illustrative purposes only and is not, and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.

This illustrated the state of the market last summer.

My illustration was not meant to be all encompassing, but simply to describe a series of transactions and the cashflow produced from it.

I am using it to illustrate not so much the difference in 401Ks vs.

Account Closed Ya, I wanted to illustrate the point that although I did my due diligence and ran my numbers for the most part correctly, this deal still fell well short of what it was supposed to be.

So many episodes illustrate the creative ways people starting with no capital can utilize the value they bring to the table to get plugged into a deal.  

Buyer perception illustrated with prices paid.