defined benefit plans for small business owners give your self-employed & small business clients...
TRANSCRIPT
Defined Benefit Plans for Small Business
Owners
Give Your Self-Employed & Small Business Clients a
Presenting…
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Agenda
Consider DB Plans in a Recession Economy:
– Help self-employed & small business owners rebuild wealth
Describe Dedicated DB’s OnePersonPlus® Program
Compare DB to other plans
Identify Ideal Clients – Who Qualifies?
Prospect for $1MM Accounts
– Building your business – What we deliver
– Cultivating CPAs and Attorneys as Centers of Influence
Close the Sale
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Dedicated Defined Benefit Services
Dedicated to providing the best small business DB plan – It’s all we do!
Helps you offer an outstanding tax strategy for FAs to present to self-employed and small business clients
Creates a high-quality experience for financial professionals and their clients -- from pre-sale through administration
Minimizes demand for technical expertise from financial professionals by providing expert plan consulting
Delivers Financial Professionals’ support – Expertise by phone – 1-866-269-2706 – Expertise online - www.onepersonplus.com
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2009 Retirement Recovery Plan
LARGE contributions for the next 5-10 years $1MM to $2MM in New Retirement Wealth
LARGE deductions tax-deduction, saves client $40,000-$60,000 or more in ‘09
You seek stable, low risk investments – Not promising high returns
Clients now ready to rebuild– Who shied away from commitment
Defined Benefit Plans for Today
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Retirement Plans for High-Income Clients
SIMPLE
SEP
401(k)
DB
DB + 401(k)
Defined Benefit (DB) plans may allow your clients to contribute significantly more earned income than other retirement plans
$49,000
$171,300
$54,500
$21,350
$134,600
2009 Plan Maximum Contribution Limits for a 52-year-old, Earning $245,000 Annually, Retiring in 10 Years
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Great Tax Strategy for Baby Boomers!
Identify Prospects Easily – Owner age 45+– Owner + 0 - 4 employees – Contribute at least 3 successive years
About New Plans– Avg. annual contributions: $120,000– Avg. term: 9+ yrs– Prototype plan documents– Integrates with a solo 401(k)
2009 Retirement Recovery Plan
1. Identify clients you can help most
2. Start the conversation – before they contribute to a SEP or 401(k) for ’09
3. Talk about redeployment of assets to execute a low risk tax strategy
4. Present a Proposal
5. Let Dedicated DB Help You Close the Sale
6. Collect up to 50% of Assets Before Year-End7
A Recovery Plan to Implement Now!
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Dr. Charles, Owner-onlySole Proprietor, Age 52
Annual earnings: $400,000
Maximum DB+ 401(k) contribution for 2009: $171,300– Contribution to DB Plan: $134,600
– Contribution to 401(k): $36,700
Annual tax savings: $65,100 – Combined marginal tax rate of 38%
DB Accumulation at age 62: $2.36 Million– 10 years, 5 - 7% rate of return
Annual DB Benefit: $195,000
Objective: Wants Maximum Tax Deduction
John, Age 55 +2 EmployeesSmall Business Owner, C-Corp Owner’s W-2 income: $400,000
– Employee 1 age 28 earning $35,000– Employee 2 age 35 earning $45,000
2009 Maximum DB contribution for owner: $162,400– DB Contribution for Employee 1: $4,000– DB Contribution for Employee 2: $8,100– 93% of contribution for John
Annual income tax savings for John: $61,700* Retirement accumulation for John at 62: $1,655,000 Annual Benefit for John in retirement: $136,500
*Assumes 38% combined State/Federal marginal rate
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Married Couple in Business TogetherC-Corp, Paul, Age 60, Mary, Age 58
5 Years from Retirement W-2 Income: $490,000 ($245,000 each)
Total annual DB contribution: $351,800– $171,800 towards Paul’s Retirement– $180,000 towards Mary’s Retirement
Annual income tax savings: $133,700
Accumulation at retirement:– Paul: $1,103,000– Mary: $1,156,000
Objective: Maximize Retirement Savings
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Side Income, Sole ProprietorSusan, Age 56, Professor
Susan has self-employment income from consulting and serving on 2 corporate boards in addition to university salary
Self-employment earnings after paying SE tax: $150,000* Maximum DB contribution for 2009: $120,000 Annual tax savings: $45,600
– combined marginal tax rate of 38%
DB Accumulation at age 62: $984,100– 6 years, 5 - 7% rate of return
Annual DB Benefit: $81,200* High 3-year average, after payment of self-employment tax
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Building Your Business in Today’s Economy
What We DeliverSales Support &
Plan DesignAdvisor Website,
Calculator & Proposal System
www.OnePersonPlus.com Ideal Clients Proposal Generator Advisor and Client Brochures Sales Kit
Ongoing Support Training for Advisors Sales Presentations Quarterly e-newsletters Client & Advisors Communications
Sales Support & Client Marketing Materials
Building Your Business in Today’s Economy Cultivating the Right Centers of Influence
Deliver Training and Continuing Ed to CPAs, Attorneys
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Prospecting for $1Million Accounts
Independent Consultants Board of Directors
– Board fees qualify as self-employment income– Income is not necessary to maintain life style
Self-Employed Spouses with “Second Incomes”– CPA and Advisor often forget that self-employed spouse’s
second income can be sheltered Software programmer Therapist Sales rep Paralegal Technical writer
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University Professors with Consulting Contracts– Business, Engineering, Medical Schools, Economics Dept– Their bios on the university website
Physicians – Anesthesiologists– Dentists– Emergency Room doctors – Radiologists– Vets
Prospecting for $1Million Accounts
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CPAs, a Great Referral Source – Create awareness, uncover qualified small business clients– Help CPA identify high net worth clients who have a problem to
solve – consultants, doctors, dentists, etc– Present to groups of CPAs
Attorneys, another Great Referral Source– Estate planning attorneys – Patent attorneys– Attorneys who assist business owners to sell a business
Prospecting for $1Million Accounts
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Closing Your Sale
1. Run a proposal online at www.OnePersonPlus.com
2. Present to client
3. Request a customized proposal: 1-866-269-2706
4. Discuss with client’s CPA
– Dedicated DB on a conference call
5. Complete Set-Up Questionnaire/Send to Dedicated DB
– With Set-Up Fee ($1,250 for 1-person plan)
6. Receive Adoption Agreement for signature
7. Open investment account
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Thank You!
Contact our DB Experts– 866-269-2706– [email protected]
– www.onepersonplus.com
Art Leaffer Co-Founder of Dedicated DB Designing retirement products for 30 years Contact me anytime:
– 415-492-1777