|
|
* Names and photo have been changed to protect privacy of clients
|
Ted, age 61 is a management consultant in California and his wife Bev, age 61 works with him in the business. Ted had his eye on a big overseas contract in late 2008 and if it came through, he needed a way to minimize his taxes and save as much as possible. When the multi-year contract was finalized, Milton Bulbuena, the Chief Investment Strategist at Contango Capital Advisors, set up a 5-year
OnePersonPlus® Defined Benefit Plan and a 401(k) by the December 31st deadline. Dedicated Defined Benefit Services worked with Milton to design a plan to meet Ted's objectives based on a combined income of over $500,000:
 |
Total 2008 Defined Benefit Contribution: $215,500
(85% for Ted, 15% for Bev) |
|
|
Total 2008 401(k) Contribution: $58,745 |
|
2008 Federal and state tax savings over $100,000
|
Which of your clients could save $100,000+ in 2009 taxes?
Milton sees the DB plan as a way to deliver a higher level service to his wealth management clients.
"It was simple for us to set up the plan and it allowed us to complement our core services. By investing the dollars saved in taxes, we were able to re-engineer their portfolio and lower the overall risk of the portfolio. We performed cash flow analysis that included the income and the tax savings. With the defined benefit plan they'll be adding at least $215,000 a year to their retirement accounts, another $50,000 if they fund the 401(k), and about $100,000 is from what they are currently saving in taxes. The new structure will help Ted and Bev have a higher chance of meeting their long term goals."
Working with Couples
Dedicated DB works with couples who are equal earners and other couples with one spouse in a supporting role. Frequently, their objective is to maximize the total benefit to the couple. They may be able to adjust how compensation is allocated in order to get the results they want. We can work with you, trying alternative scenarios to maximize contributions, tax deductibility and total income in retirement.
Learn more about considerations of working with couples, click here.
Working with Dedicated Defined Benefit Services
Dedicated Defined Benefit Services, as our name implies, specializes in defined benefit plans. Trusted by leading financial services companies like OppenheimerFunds, Pioneer Investments, Regions Bank, TD Ameritrade and hundreds of wealth managers and investment advisors, we administer over 1000 IRS-approved plans for independent professionals, consultants, small business owners and the self-employed.
We can help you too — with your existing clients and with new prospects.
Be the first to offer a Defined Benefit Plan for your clients.
Ideal clients will be:
|
45 to 70 years of age |
|
Able to contribute a significant amount of earned income for 3 years or longer |
|
Business owners with 0-5 employees |
Client Marketing Tools
We've created marketing tools that you can use when reaching out to your existing and prospective clients.
-
Seminar: You've identified one or more prospects who have the potential to benefit from the tax advantages of a defined benefit plan, now use our "Defined Benefit Plans for Small Business Owners" presentation. We've highlighted the different financial profiles that your prospects might fit and explained the benefits in layman terms.
-
Order brochures: Click here to receive 25 brochures to hand out or mail to prospects
-
Client Highlights: Email program highlights to select clients today.
-
More Tools: Visit our Sales and Marketing page for more prospecting tools.
Closing the Sale
Once you've identified qualified candidates for defined benefit plans, follow these steps to close the sale.
-
Contribution Calculator — run a DB estimate and proposal online in 2 minutes to present to your client/prospect or complete a Proposal Request Form and we can produce a customized proposal for clients who are younger or have more complicated situations. Our DB specialists are available everyday to answer your questions.
-
Overcoming objections — read our Q & A to help you answer questions or call 1-866-269-2706 and we can join you via phone with your client, prospect or their tax advisor.
-
Complete the Set up Questionnaire with your client once your prospect has said yes, and we'll work with you to make sure your client's objectives are met.
|
