OBJECTIVE: To generate current income tax deductions while funding vehicles where investments can grow tax-efficiently and generate tax-efficient payments throughout retirement while transferring additional wealth tax-free to heirs and/or favorite charities.
Thomas and Virginia Smith achieved great success in their business. Instead of spending all of their income on their lifestyle, they wanted to maintain a comfortable salary and accumulate the excess taxable income tax efficiently. The team of advisers recommended that they move beyond Level 1 on the planning pyramid to consider qualified plans at Level 2, non-qualified plans at Level 3, charitable solutions at Level 4, advanced executive compensation plans at Level 5, and hybrid charitable and non-charitable strategies at Level 6. These solutions are summarized at http://tinyurl.com/BizTaxSolutions and below:
*Please ask how taxes on Excess Taxable Income can be deferred using vehicles that grow wealth tax-efficiently and distribute wealth tax-free. See http://tinyurl.com/ExcessTaxSolution
The Smiths' advisers illustrated the Smiths' high income taxes on 1) their business income used for their lifestyle and 2) their excess income not used for their lifestyle. The advisers customized a graphic like the one displayed to the right.
The Smiths' advisers then helped the
Smiths calculate how much extra wealth
they could accumulate if they:
1) invest excess income without taxes;
2) grow assets without taxes;
3) distribute assets without taxes (during their retirement or at death).
695 Town Center Drive 7th Floor
Costa Mesa, CA 92626