Providing Income and Confidence in Times of Uncertainty:
1) We paid a claim of $6M. The client had paid a total of $1.4M in the 6 years they held the policy. The added liquidity this has provided to the family enterprise has allowed the successors to satisfy creditors and the business to thrive.
2) We assisted in the settling of 8 estates. We coordinated amongst insurance and investment companies, accountants, lawyers, executors, and family members to deliver sensitive, tax efficient, and quick resolutions.
3) We helped a woman protect herself against the loss of income during an unforeseen illness by offering her Critical Illness Insurance. She certainly didn’t anticipate making a claim so soon, but at the age of 37 we paid out the Illness policy and provided her with a lump sum of TAX-FREE cash. She was able to use this money to focus on getting healthy, without worrying about how she would afford to pay her bills.
Turning Corporate Dollars into Tax-Preferred Personal Dollars:
4) We established an Individual Pension Plan for a business owner and spouse in their late 40s. This has allowed them to avoid “bonusing-out” and paying tax at 39% above the $500,000 small business rate. In 2014, this figure was $169,300, saving them $66,027 in tax. At age 55, the total amount of funding from the Operating Company to their Pension Plan is $1.154M, creating personal tax savings of $450,060.
5) We helped establish a Family Trust and suggested a strategy that changed the ownership of a $1M policy from being owned personally to being owned by a Holding Co. By doing so, the family was able to save 39% of future tax or $390,000 of future tax liability. We presented, coordinated, and executed the plan amongst an actuarial consultant, lawyer, accountant, and family members.
6) We counseled a business owner to change the ownership of a $5M personally owned policy to be owned corporately. With an actuarial assessment of the policy indicating its value to be $800,000, the client was thus able to personally pay themselves $800,000 of trapped corporate surplus at zero tax.
7) We helped business owners retain and attract quality employees by offering Employer Flexible Health Spending Accounts. The Health Spending Account allows an employee to spend their cash on gym memberships, fitness classes, sports registrations, or household medical expenses not covered 100% by one’s traditional Health Plan. This gives the employee control over more of their benefits’ features. Many employers are using these benefit programs as a way to differentiate themselves from their competitors while offering the same flexibility as large employers.
Planning to Provide Certainty:
8) We assisted in the sale of a few businesses. By modeling a number of Retirement Income scenarios, we were able to provide confidence that the enterprise value was sufficient to comfortably provide the desired amount of inflation adjusted income for life, while preserving estate conservation and charitable giving goals.
9) We assisted clients with the sale of land, and were able to create a Financial Plan which catered to their income needs and included the goal of buying a recreation property. After a few years of solid gains in the marketplace and divided growth that increased their income, we were able to illustrate buying their recreation property without affecting their retirement income.
10) We established and updated 57 Financial Plans. This provides confidence and peace of mind that the manner in which your investment portfolios are being managed is consistent with the results required for you to accomplish your financial goals.