STRATEGY FOR BUSINESS OWNERS AND KEY EMPLOYEES***
What is a Financed Retirement Plan?
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?
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Invested money continues to grow until withdrawn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 Insurace Cash Value Withdrawls can be Taken as "Loan" without Tax Consequences by Business Owner / Key
What are the Main Advantages of a Financed Retirement Plan?
Provides Vehicle to Enhance or Jump Start Retirement Savings
Simple Interest Loan vs Compound Returns
No Cap on Plan Contributions
No Conflict with Current Retirement Plans
Life Insurance Protection
Large Initial Capital Contributions Compound Tax Deferred
Contact Us to Get
More Information and See How a Financed Retirement Plan could be of Benefit to 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.