Capital Deployment Strategies for Advisors

When clients deploy capital from their banking system into external assets or projects, tracking the deployment alongside the policy loan that funded it gives both of you a clear picture of how the system is performing.

Viewing Client Deployments

From a client's profile, the Overview tab shows active deployments with:

| Field | Description | |-------|-------------| | Deployment name | What the capital was deployed into | | Amount deployed | Total capital deployed from the banking system | | Policy loan funding it | Which policy loan funded this deployment | | Recorded return rate | The return rate the client has entered for this deployment | | Loan rate | The carrier's rate on the policy loan | | Spread | Recorded return rate minus loan rate | | Status | Active, Completed, or Paused |

Actual is implicit for recorded-only values, while Projected estimates remain explicitly badged. Mixed-source comparisons label Actual when needed.

Understanding Spread in Context

Spread — the difference between the deployment's recorded return rate and the policy loan rate — is one metric among several. It shows the rate differential on a single deployment but does not capture the full picture of how the banking system is performing.

Equally important metrics include:

• Capital velocity — how many times capital has cycled through the system
• Restoration pace — how quickly the client is restoring capital after deployment
• Cash value growth — the underlying asset continues to compound regardless of loan activity

Using Scenarios to Model Deployments

The scenario tools let you model deployments before the client commits capital:

Capital Velocity Calculator

Model how a proposed deployment affects the client's overall capital cycling rate. Input the deployment amount, expected return, loan rate, and repayment timeline to see how the numbers flow through the system.

Income Stacker

Layer projected deployment income against policy loan costs over time. This shows the Net CV trajectory month by month — useful for deployments that generate recurring income.

Financing Modeler

Compare accessing capital through a policy loan versus external financing. The comparison makes the interest flow mechanics visible without framing either approach as the "correct" choice.

Discussion Framework for Client Meetings

When discussing deployments with clients, focus on these questions:

• What does the current data show? Pull up the client's recorded deployment data and review the numbers together.
• What does the model suggest? Run a scenario with the client's actual figures to illustrate how a proposed deployment might affect their system.
• What is the repayment plan? Every deployment conversation pairs naturally with a repayment conversation — how and when will capital be repaid to the banking system?