How many times have you said if there was something I could do about my taxes I would? Part II

Posted on May 15, 2010 by Bill Faiferlick

Now you can. A few years ago Congress changed the benefits business owners and professional can expect with hybrid pensions. Today new annual deductions as high as $250,000 are available for those with high tax obligations which will drastically cut those taxes.  

You simply go to work, run your business or practice as you’ve done or years and make an annual contribution. By the time you retire you will have received a 100% return on your investment and you decide how you want to spend the money

Question: If real estate as an investment is changing, how are we supposed to create enough wealth to eventually retire?

It costs millions to live twenty to thirty years even with an income of $200,000 a year.

Ask yourself this: What’s the most sinister financial and non- revenue producing financial obligation you spend about one half of your earned income on?

Answer: TAXES

Question: What benefit is there other than federal compliance?

Answer: None.

Taxes earn nothing. It’s a pure expense that strips away wealth.

Question: So how in a rising tax environment can taxes work for you?

So let’s pick the low hanging fruit and slash you taxes by as much as 50 percent and put that new money to work for you.

Even if you have employees a hybrid pension lets the owner or professional keep 75 to 90 percent of all contributions.

If you have no employees, this is even simpler yet.

Question: By how much are you talking about reducing taxes and redirecting wealth?

With meaningful contributions as high as $250,000 annually per owner in five years, you could have $500,000 to $1.25 million or more off the table and HALF of that would have been funded from tax obligations that were redirected to your personal wealth rather than enhancing the coffers of the IRS.

Question: How would this affect your personal wealth having another $500,000 to $1.25 million or more in cash?

Question: How easy would it be when half of the money is funded with immediate tax savings?

Question: How easy would it be when your contributions are 100% guaranteed every year?

Question: How easy would it be if your plan assets are guaranteed to be there when needed?

Question: How easy would it be in years when taxes are less you have the ability to suspend or freeze your plan? The fact is no one can with any certainty see down the road more than an few years and that’s where flexibility plays a role.

Question: How easy would it be to take the money off the table when you have high taxes and quit when things are leaner? Flexibility is designed into the opportunity from day one.

Question: How easy would it be if it were an ERISA compliant plan designed to meet your needs and future objectives? You can’t be any more conservative and certainty that the plan is compliant allows you to avoid unnecessary risks.

Question: What investment today gives investors 100 percent return on their investment with no risk and guarantees?

Considering all other investment options, you simply go to work, run your business or practice as you’ve done or years and make an annual contribution. By the time you retire you will have received a 100% return on your investment and you decide how you want to spend the money.

Question: Is the money protected from creditors?

It provides the best protection available in the US since ERISA plans are federally protected from creditors and judgments. Since a new lawsuit is filed every 30 seconds in the US this is a major benefit.

Question: If growing your net worth is a priority does real estate or any other investment begin to compare?

From a dollar to dollar accumulation perspective, they can’t compete.

You are able to exchange your tax payments for pension contributions.

Question: What is the cost of paying $100,000 to $250,000 or more in taxes every year to the IRS every year for 10 years?

Question: How hard do you have to work to pay the government $100,000 or more per year?

Question: What would you do if you have an option to reduce your tax paid to the IRS every year?

You’ve asked for tax relief now it’s available. Instead of mailing tens of thousands of dollars over the coming years to the IRS, you’re allowed to invest those dollars for your benefit into a hybrid pension – an ERISA pension plan. For every dollar you invest you receive what amounts to 100% matching or 100% guaranteed return on your investment.

Question: What is your goal?

If your goal is to accumulate as much money or assets as possible using the most efficient tax tools available (smart investing instead of laboring harder or longer) then you might want consider making an inquiry.

Question: What do truly wealthy people do?

Truly wealthy individuals have understood leveraging since the dawn of time – using someone else’s money whenever possible has always been a priority.

This opportunity needs serious consideration. Facts and circumstances will determine its suitability but the implications should be clear.

Question: What is the benefit of leveraging taxes paid to the IRS?

Leverage your business taxes and you will create wealth you wouldn’t otherwise have.

Question: What about the future?

No one can predict what the next five year will look like which is why I encourage each client to take the money off the table and protect it in the years you can. In other years stop or suspend, the plan must be flexible enough to accommodate changing needs.

Question: You have a new tool, how many times have you said if there was something I could do about my taxes I would?

In this era of high and increasing taxes isn’t it time you take full advantage of the opportunities available to you?

Question: What’s the worst that could happen? You might discover that in the next five years you have too much money?

Some of this information is covered in more detail in my book It’s Your Money: Your CPA May Be Costing You Millions which focuses on opportunities for business owner or professional to increase profitability and their personal wealth and financial independence.