Tax-Reduction Planning

Many people or even advisors are NOT familiar with other tax-free tools

Smart Legal Tax Reduction

For most, your #1 creditor (someone you pay money to) every year is the IRS. There are a number of taxes we are subject to including income, capital gains (short- and long-term), and potentially estate taxes.

Many people or even advisors are NOT familiar with other tax-free tools

Tax-Reduction Planning

Many people do everything they can to minimize taxes by taking deductions to IRAs, 401(k) plans, etc. The question is does that always makes sense?

For many people it may be better to pay taxes now IF there are tools that let money grow tax-free and come out tax-free.  Most people are familiar with Roth RIAs or even Roth 401(k) plans (these are funded with after-tax dollars but allow money to grow tax-free and come out tax-free).

Many people or even advisors are NOT familiar with other tax-free tools that can be used that do NOT have the same funding limits. The role of a good advisor is to know all the available tools and be able help clients use them to accomplish their wealth-building/retirement planning goals in the most tax-efficient manner possible.

If you would like help designing a tax-favorable retirement plan, simply email info@provenmarketingstrategies.net and we’ll set up a call or an in-person meeting to discuss what options will work best for your personal situation.

Business owners

Business owners have more options when it comes to implementing pension plans for themselves and their employees. The key is choosing one that is best for all interested parties. The following are options a business can choose to use (some you’ll be familiar with and some you most likely will not).

A combo plan (a mix of two or more of the following) will typically be the best way for business owners to put away the maximum for themselves and the minimum for employees. That is not always the goal of employers, but many times in a small business setting that is the case.

If you would like to have your current pension plan design reviewed and/or would like to discuss how we can help you design a more efficient and cost effective plan for your business, email info@provenmarketingstrategies.net to schedule a call or an in-person meeting.

  • 401(k) Plans—these are employee-sponsored plans where employees can make voluntary payroll deductions in a tax-deferred manner.
  • Roth IRAs and 401(k) Plans—these are after-tax versions of the deductible kind where the money is allowed to grow tax-free and come out tax-free.
  • Profit-Sharing Plans (PSPs)—these are plans employers can choose to put in place where the employer makes the contribution. There are three different kinds of PSPs employers will use depending on their goals.
  • Defined Benefit (DB) Plans— these are not only funded by employers for their employees, but the employer is guaranteeing a certain retirement income for vested employees at retirement. DB plans allow for much larger deductions typically than 401(k) or profit-sharing plans.
  • 412(e)3 Defined Benefit Plans—these plans are fully insured plans using annuities and/or life insurance. The deductions are typically larger than traditional DB Plans, but even less flexible tools.
  • Cash Balance Plans—these are a type of defined benefit plan with more flexibility than defined benefits.
  • 401(h) Plans—this is the only “tax-free” qualified retirement plan. Money goes in tax-deductible and money can come out tax-free.  401(h) plans are a type of defined benefit plan.

FOUNDATION

Prepare wills and trust
Evaluate insurance needs
Review cash flow budge

SHORT TERM

Emergency fund
Liquid investments
Start building portfolio

MID TERM

Wealth accumulation
Pay college expenses
Start a business

LONG TERM

Retirement
Sell a business
Leave an estate

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Your Questions

To learn more about our management philosophy and whether it may fit in with what you are trying to accomplish with your investible dollars.
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Let's Answer
Your Questions

To learn more about our management philosophy and whether it may fit in with what you are trying to accomplish with your investible dollars.





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