Strategic Retirement Program

The program is simply a tool through which a business owner may have the ability to dramatically advance their wealth accumulation relative to their retirement planning efforts in a highly tax advantaged manner. 

Service Overview

Our methodology when applied gives business owners the   opportunity to take a tax deduction relative to their participation, grow   their wealth tax deferred and take distributions out of the retirement   planning medium tax free.  Additionally, it jump starts their retirement   by advancing massive amounts of capital in their program for them, with the   goal of realizing superior gains as a result of having more money working for   them.  This lends itself to having the ability to generate a much larger   nest egg that may then be distributed on a tax-free basis.

There exist two additional iterations of this platform to accomplish additional goals:

• Wealth  Transfer:  Transfer massive amounts of wealth to heirs, charity, school or foundation utilizing the most powerful and cost-effective manner while guaranteeing the results.

• Estate Plan:  Engage in estate planning utilizing the benefits of a business to accomplish the most cost effective ILIT in existence.

• Qualified Plan Rescue:  By redirecting participating funds, the opportunity exists to generate a structure that results in tax free distributions that may be applied against taxes due on distributions out of a qualified plan.

• Business Exit Planning:  With the ability of the front loading to be assumed, it may provide massive benefit to the business seller and buyer at sale.

• Key-man & Buy/Sell:  With the insurance contained within the structure, it can be used as a wealth accumulation medium and address insurance needs simultaneously.

SRP - Strategic Retirement Program FAQs Print

What is the optimum age a prospect should be to take advantage of SRP?

When SRP is used specifically for retirement purposes, there should be approximately 10 years allowed for the policy to grow. Therefore, the 'oldest' age that a policy would be feasible to fund with the intention of retirement income is around age 60.  (This enables the policy to grow for 10 years and loans can begin as tax free income from the policy at age 70.)

If the policy is being used to fund Estate Planning or general death benefit needs then the maximum age is approximately between 80 - 85. This approximation must take into consideration the health of the client, the network and which carrier we will use.

What is the minimum and maximum amount for clients relative to SRP?

The minimum annual payment is only $50K.  For example, if were were to do a 5 pay scenario into a life insurance policy, the total loan would be $250,000 at $50,000 annual premium payments for 5 years.  

There is no overall maximum.  Our lender allows for up to two times the client's net worth to be loaned assuming the client can afford the interest payment.  

Maximums for each individual client typically comes into play when working with the life insurance carrier to justify a death benefit amount.Is SRP limited to Business Owners?  

Could other key personnel set one up personally?SRP is driven by the owner(s) of the business, meaning the owners/board members of the corporation must sign off on the transaction as we are making a corporate loan.  

Often, owners will use this program to place key man or 'golden handcuff' insurance on one of their employees.  However, key personnel cannot utilize SRP individually.

Can SRP be utilized if the owner and other possible participants are already participating in a company retirement or pension plan, 401K or other form of company sponsored retirement planning?

Certainly, SRP can be setup for supplemental retirement income above and beyond the current qualified plan they are participating in and/or an added death benefit for estate planning or wealth transference coverage.

Describe the transition from the Business Owners Qualified Plan to SRP?

There does not have to be a transition as SRP is not a qualified plan and is not restricted to maximum contribution limits as a qualified plan is.  The client can continue to contribute to the qualified plan or split the payment between SRP and the existing plan, or stop investing in the qualified plan. It is simply what the client is most comfortable doing.