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Building benefits for future income take advantage of every opportunity available each form of employment has many tools to aid your accumulation objectives. See if you are using all. |
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| Employer Learning Center |
The following are items that you might consider taking advantage of to enhance your Retirement accumulation and planning.
Become Proactive
- Have specialists review your existing plans and programs. Often advisors that you have been working with over the years may have set you up with an IRA, Roth IRA, 401K and you are satisfied that you are doing the maximum from a tax leveraged accumulation strategy. The rules are continually changing and require a high degree of specialization to understand and implement. (Your business can deduct the cost for advanced tax planning.) ADVISOR SOURCE
As one specialist has put it “My experience with CPAs in general is that they are reactive, not proactive. They are trained to compute data and keep you compliant; they are not typically trained to be proactive and seek out ways for you to maximize everything that you are doing. This is not a knock on them, but you have to understand that the typical CPA only has a small handful of client like yourself. They spend the vast majority of their time working with 1040’s which is how they make their living. For them to really specialize in the unique planning that we do just isn’t feasible because in their client base there just aren’t enough people like you that really need this highly specialized type of planning for it to make good business sense for them to do so. You see we work with CPAs and client all across the country and many CPAs outsource this niche planning to us, because this is 90% of what we do. Having such a broad group of advisors that outsource this work to us has allowed us to become highly specialized and has given us the opportunity to spend the time it takes to become very good at this intricate type of planning. We still want the involvement of your current advisors to keep you compliant, but waiting for them to bring you the ideas that we work with daily will likely never happen. The planning I am talking about can save you Millions of dollars in taxes and help you use that money to build real wealth, something that your current advisor just cannot do because he/she doesn’t have the time to take on this highly specialized level of planning… Sample cases that all had existing advisors SAMPLE CASES
- Review the tremendous advantages of current tax savings with the use of charitable interests. If you could reduce income tax payments today and simply save the money or invested it over time there could be additional money waiting for you that would not be there in your current strategies. In many cases income tax can be eliminated through the use of application of IRS approved plans. Do you own your own buildings? If so, you have interesting opportunities to explore. The same caution regarding advisors as outlined above is recommended. SAMPLES
- Explore any alternatives to improving your overall situation by using your business or corporate check book. For example; one of the major concerns for those approaching the retirement years and beyond is the potential catastrophic cost of serious illness and care. Most of us are horrified at this prospect because we have seen it happen to someone we have known. They worked hard all their life, saved and lived within their means and built a nice nest egg only to see it wiped out through serious illness of self or spouse. Disability Income and Long Term Care insurance programs can be arranged easily through your business to remove this threat.
- Get Life insurance paid for with pre-tax dollars. SAMPLE
- Consider Self Directed IRA, 401K investing. Many sources for this have much larger returns than traditional institutional savings and investment accounts. SELF DIRECTED
- Add a couple more years’ contributions by working a little longer. With some of the special provisions in the makeup IRS code, you could make a significant change to your retirement income potential.
Defensive Considerations
Sale of business is always an interesting possibility. The question is to whom especially if it is supporting other family members. Each situation is different but if you are going to use the sale proceeds as a basis for your retirement income be aware of the pitfalls. Funding for retirement with business sale proceeds from company profits is risky. Buy outs with owner financing have a high default rate especially after the 4th year. Consider staying active in business until pay off is complete.
Reduce expense, trim payroll, and defer purchases and maintenance, and other techniques to pump up net profit for more cash out. Possible additional income taxes will need to be paid unless you have a good offsetting deduction strategy like pension contributions, charitable deductions or carry forwards.
Eliminating debt will mean less cash flow demands
Sale of properties assets or equipment to fund possible deferred compensation plan.
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