Business owners handling a projected tax bill cluster into five patterns -- pay immediately, bet it on a high-risk illiquid asset, leave it in the business and eat the penalty, park it safely as a single decision, or tier it like an insurer's general account -- and only the last matches risk and duration to the liability's actual timing and certainty.
The diagnostic opening of the Invest Like an Insurance Company framework page: business owners handling a projected tax bill cluster into five response patterns, and only one of them — tiering the reserve like an insurer's general account — actually matches the money's risk, duration, and liquidity to the certainty of the bill.
"Business owners handling a projected tax bill cluster into five patterns -- pay immediately, bet it on a high-risk illiquid asset, leave it in the business and eat the penalty, park it safely as a single decision, or tier it like an insurer's general account -- and only the last matches risk and duration to the liability's actual timing and certainty."