Alright, let’s talk about private placement life insurance (PPLI)—it’s like the VIP lounge of tax strategies. If you haven’t heard of it, don’t worry, because it’s a club most of us middle-class folks aren’t invited to.

Here’s the deal: PPLI is a fancy life insurance policy that doubles as a tax shelter for the ultra-wealthy. Rich individuals can funnel investments into it—think hedge funds or private equity—and their gains grow tax-free. The cherry on top? The death benefits also pass to heirs tax-free. Oh, and if they need cash, they can borrow against the policy without triggering big tax bills. Sounds dreamy, right?

But wait—it gets better (for them). This setup is tailored to fit their exact financial situation, with high-powered advisors ensuring everything stays IRS-compliant. The catch? It’s expensive to set up and maintain, so unless you’ve got a few million lying around, you’re not getting in on this.

Meanwhile, for the middle class, this kind of tax-free investment growth is out of reach. We rely on things like 401(k)s and IRAs, which come with strict contribution limits and aren’t nearly as customizable. It’s a reminder that the tax code often favors those at the top, leaving the rest of us to play by a very different set of rules.