Arbitrage is a core aspect of the global economy, whether you’re a small businessperson selling vintage clothes on Etsy or a major investor trading billions of dollars across currency markets. Ultimately, it comes down to the oldest rule of investment: buy low, sell high.
This fancy word “Arbitrage” is not really complicated. When you remove money from your account you are not actually touching your principal, which is earning high interest. Instead, you are “borrowing” money from your bank, your LiquidIUL.com account, at a much lower rate.
The loan rate is 5%, but the average EARNINGS are much higher, often twice that amount.
So you get to EARN money on the money in your account at the high rate of interest, while you only pay 5% for the loan you took against that money. That is Arbitrage.
In other words…arbitrage is earning money on the spread between the two. Later, you can pay the money back if you want. OR you can just leave the loan the books and later it is paid from death benefit when you die.