Business Owner needs to accelerate retirement funding

Business Owner needs to accelerate retirement funding

Client Business Owner age 55
Situation
  • Business earns $2.2 M in taxable income annually
  • Top income tax rate of 50%+
Pain High tax rates make retirement accumulation and business reinvestment problematic
Solution
  • Tax return analysis determined that depreciation can be accelerated on intellectual property
  • Increased write-offs and reduced tax liability
  • Tax savings funneled into executive private retirement plan using investment grade life insurance
Results
  • Enhanced net cash flow to maintain lifestyle and reinvest in business
  • Client participates and owns an additional executive retirement account funded $200,000 annually with the tax savings from accelerated depreciation

Business Executive Close to Retirement Age

Client Corporate Executive age 64
Situation
  • Most retirement money is in 401k and IRAs
  • Portfolio allocations are weighted towards growth in the stock market
  • Bonds no longer provide reasonable or safe return of principal
  • Close to retirement with potentially volatile investments
Pain
  • Fear of possibility of losing retirement reserves
  • Considering postponement of retirement plans
Solution Convert 401k and IRA investments into alternative asset classes and indexed annuities
Results
  • Peace of mind and security
  • Indexed annuities generated guaranteed minimum returns
  • Confidence in retirement plan and date
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