4 Secrets Successful Business Owners & Professionals Use to

Reduce Taxes and Create Wealth

Presented By:

Ken Shapero, LUTCFVice President

CJA and Associates

A Few Questions Before We Start…

What type of business entities do they own?

How many full time employees?

Are any of their businesses a target for lawsuits?

How much is too much tax? $100,000+ $250,000+ $1,000,000+

Are they using allall the planning available under current tax laws to legally reduce their tax liability, protect their assets and create significant additional wealth???

If not, let’s explore the 4 Secrets4 Secrets!

A Few Questions Before We Start…

Secret #1

What type of qualified retirement plan do they offer? Is it an employee benefit plan or Is it an EMPLOYEREMPLOYER benefit plan?

Secret #1

Employer

25%

75%

Employees

Most companies tend to have employeeemployee benefit plans!!!

Secret #1

5%

95%Employer

Employees

Smart Employers offer Employer Benefit Plans in which the owner/owners receive 80% to 95%80% to 95% of the total contributions.

Free Feasibility Study

Please allow us to offer you and your clients a

FREE feasibility studyFREE feasibility study to assist you in discovering

what type of plan would work best for their business.

What type of employer sponsored benefit plan would allow your clients and a number of their certain key employees to purchase personal life insurance with a 35% discount35% discount and have

the policy paid up in 5 yearspaid up in 5 years?

Secret #2

Business Pays a tax deductible premium for life insurance for employees of corporation including key employees/owners.

Premiums are partially tax deductible to employees based on benefit provided

Upon transfer of the policy to the employee, the employee owns policy and all rights associated with policy including future tax-free loans.

Tax-free death benefit may be paid to employee’s beneficiary in event of death.

Section 79 Plans

Advantages of Section 79 Plans

Contributions to the plans may be tax-deductible.

Income tax-free portable death benefit. Tax-deferred accumulation. Tax-free income in later years. Only 60-65%60-65% of the contribution is included in

taxable income to employees. Benefits of future planning are substantial

Supplemental Retirement Income Wealth Transfer Estate and Liquidity Planning

1. How comfortable are you today with our current or proposed health care system?

2. What impact will it have on you, your clients and your families after retirement?

Secret #3

Secret #3

If you could set up a private plan that guaranteesguarantees you will have a pool of money

to draw upon in post-retirement and it would be tax-deductibletax-deductible, tax-deferredtax-deferred,

creditor protectedcreditor protected and more importantly provide tax free reimbursementsprovide tax free reimbursements for almost any medical expense,

would you be interested?would you be interested?

Example

Name First Year Contribution

% Of First Year Contribution

Plan Account Value @ NRA

Owner #1 $246,357 47.05% $646,500

Owner #2 $277,223 52.95% $727,500

Total Contribution: $523,580

Husband and Wife, age 62

NRA 65

1 other employee ineligibile due to service

Secret #3

Employers today are using this

““Post Retirement Medical Reimbursement Plan”Post Retirement Medical Reimbursement Plan”

for themselves and their employees with

confidence that no matter what happens with

health care reform they will have resources to

provide for their needs.

Sample Numbers

Census Owner, age 62 retiring at age 65, salary

$235,000

Account at Retirement: $1,374,000

Annual Withdrawal: $97,489

Total Sum of Withdrawals: $2,437,217

Create

Your OwnYour Own

Insurance Company

Secret #4

Secret #4

The purpose of creating your own insurance company is

primarily to insureinsure or reinsurereinsure the risks of the owner.

Secret #4: A Little History

Around since the 1950’s

Currently over 5,000 privately owned small insurance companies

Used by nearly 80% of S & P

Substantial Case Law & IRS Guidance

Why Consider Your Own Insurance Company?

Contribute significant Pre-Tax dollars (under IRC 831b) up to $1,200,000 per insurance company

Grow the money over flexible periods of time (no 59 ½, no 70 ½, no eventual IRD Tax) on a tax favored basis

Asset Protection Structure; protected from the claims of creditors personally & professionally

Why Consider Your Own Insurance Company?

No contribution for employees

Ability to access the money on a favorable tax basis while living and passing assets to loved ones without gift and estate taxes

Tax Favored access to assets based on clients & advisors Dividend rates @ 15% Capital Gains rate @ 15% Tax Free

Typical Captive Structure

Shareholders Shareholders

Parent Company Parent Company

Premiums

Claims

Possible Risks

Insured Workers Comp Auto Insurance General Liability Property Coverage

Deductibles Exclusions

Possible Risks

Uninsured Administrative Actions Legal Defense Construction Defect Employment Practices Product Liability Product Warranty Terrorism Risk Computer Operations

Captive Benefits

Insurance is typically a good investment Provides coverage for uninsured risks Lower insurance cost-overhead and profit are

a large portion of premium Establishes best risk management practices Provides tax benefits Creates wealth Facilitates wealth transfer Asset Protection

To Review

Secret #1: Have an Employer Benefit Employer Benefit Qualified Retirement PlanQualified Retirement Plan

Secret #2: Buy your personal life insurance with Big DiscountsBig Discounts paid for by your company

Secret #3: Set up your own “Post “Post Retirement Medical Reimbursement Plan”Retirement Medical Reimbursement Plan”

Secret #4: Set up your own Insurance CompanyInsurance Company

Sign Up For A Private Consultation To Sign Up For A Private Consultation To Discuss Any Of These Plans!Discuss Any Of These Plans!

Thank You!

For Additional Information Contact:

Kenneth Akiva Shapero Kenneth Akiva Shapero

LUTCFLUTCF

954-775-5514

kshapero@cjamarketing.com