But with the example numbers in the post, your fund increases by $300,000 a year even after your "withdrawals". So, you're still netting $260,000 after the int

But with the example numbers in the post, your fund increases by $300,000 a year even after your "withdrawals". So, you're still netting $260,000 after the interest on your loans. And that growth compounds, too. (I'm not a multimillionaire, but I'm guessing you can get a bit better than 8% rate for a fully collateralized loan in exchange for your business) This strategy only works when your account grows by significant more than you need to spend, but that can happen with a relatively small fortune of a few million dollars.