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***EXCLUSIVE RETIREMENT STRATEGY FOR BUSINESS OWNERS AND KEY EMPLOYEES***

 

Layered on top of or in lieu of a Qualified Retirement Plan (401(k), etc…), a Financed Retirement Plan is an innovative tax-efficient strategy that allows a business owner, executive, or key employee the ability to leverage large sums of capital into an arbitrage-advantaged, compounding asset for their benefit.

How Does a Financed Retirement Plan Work?

Three Phases

Phase I: Company Takes Out Commercial Loan

  • Interest-Only Loan (simple interest)
  • Interest Payments May Be Tax-Deductible*
  • No Personal Guarantee Required

Phase II: Money Immediately Transferred to Account for the Business Owner / Key Employee via a “loan”

  • Money Put into select Life Insurance or Annuity Policy
  • Deposited Money Grows Tax-Deferred via Compounded Returns
  • Business Owner is Policy Owner and Beneficiary*

Phase III: Growth and Payout

  • Corporate Loan Repaid via Corporate, Investment, or Personal Funds
  • Invested money continues to grow until withdrawn
  • Loan to Business Owner/Key Employee Forgiven or Repaid
  • Life Insurance Cash Value Withdrawals can be Taken as “Loan” without Tax Consequences by Business Owner / Key Employee


What are the Main Advantages of a Financed Retirement Plan?

  • Provides Vehicle to Enhance or Jump Start Retirement Savings (even if you’re late in starting)
  • Simple Interest Loan vs Compound Returns
  • Selective Benefit
  • No Cap on Plan Contributions
  • No Conflict with Current Retirement Plans
  • Life Insurance Protection
  • Large Initial Capital Contributions Compound Tax Deferred
  • No Personal Guarantees on Loan
  • Possible Use in a Buy-Sell Agreement
  • Monies May be Protected from Creditors*

 

 

Contact Us to Get More Information and See How a Financed Retirement Plan could Benefit You.

 

*Please note, all concepts, strategies, and products mentioned may not be suitable for you or your company. Information provided is not intended to be legal or tax advice. Please consult with your tax and legal advisor for specific tax questions.  For Financed Retirement Plans, the policy remains in collateral assignment with the lender until the loan is fully paid.