This is your one stop shop for Pensions. Here you will find a Pension Plan comparison chart, detailed plan outlines and a Million Dollar Sales Idea.
I would like to outline a sample plan below for a Dentist Office an agent just wrote.
Mr. Dentist’s office makes $600,000 per year. He currently is paying $180,000 in taxes and putting away about $24,000 into his current 401k plan. He is 56 years old and would like to retire in 6 years. He has spent his whole life building his practice, so his retirement accounts do not have the values he wishes they did. We decided to write a Defined Benefit Pension plan for him. Below are the plan details.
2015 contribution into a Defined Benefit Plan. $325,000
He plans on contributing $325,000 per year for the next 6 years
The portion of the $325,000 that goes into his own pocket is $305,000. He has a staff of 3 other people. An office manager and two dental hygienists. His office manager gets a contribution made for her of $8,000 and the two hygienists get $6,000 each.
His taxes dropped from $180,000 to $50,750. So out of the $325,000, $129,200 is money that used to go to the IRS. He now gets to keep that money.
Over 6 years he will save $775,500 in taxes and have a Pension value of around $2,560,120.00.
Do you have a high compensated business owner that would benefit from a plan like this? If so here is a Pension Census form you can submit to email@example.com with details about the business and I will work up a quote for you.
Did you also know that you can hold qualified money within a Defined Benefit Plan? Clients can put up to 66 2/3% into a whole life policy, and the rest into an annuity. The life insurance can be used for a buy sale so the client can eliminate that company expense.
Lastly, the agent that wrote this case made a commission north of 100k.
If you have questions please contact me at firstname.lastname@example.org or call me direct at 612-730-2963.
Agent Sales Materials
PDF: Fact Finding Census
PDF: Million Dollar Sales Idea