Today, most people associate the
term “pension” with a defined
contribution plan of some sort: Profit Sharing plans, IRAs, SEP-IRAs. The Benefit Focused Plan is comprehensive: it links income tax savings now with future retirement security and anticipates the problems of estate planning. With the single exception of income tax on monthly retirement benefits, all taxes including income tax, estate tax, generation-skipping tax, probate tax, state inheritance tax — are bypassed. And each element of the Plan is based upon conservative earnings and tax compliant assumptions and practice. Traditional pension plans are attractive for two reasons: they offer a first step to financial security in retirement, and they allow tax-deductible contributions. But there are two disadvantages: Defined contribution plans discriminate against the business owner who tends to be older than most of his or her employees. When compared to the business owner’s income, the defined contribution plan permits only small before-tax contributions. All this week we’re addressing this strategy in the succeeding releases. The younger you are, the less it matters that your pension contributions are subject to severe restriction. Income for the young is usually relatively low, so they usually contribute as much as they can afford. And, with their contributions   Read more…

Actuarial science is a tax deduction’s best friend when it comes to defined benefit plans under ERISA. Conventional lump sum plans may be an option for small to medium business owners. But larger profitable companies are seeking serious six-figure deductions under the code to redirect those monies away from taxes towards their retirement plans. What distinguishes a retirement plan, which is Benefit Focused from one that is Lump Sum Focused?  (such as the traditional split funded insured defined benefit plan?)  A Benefit Focused Plan provides no distribution or cash out of the lump sum value of the participant’s monthly retirement benefit.  This restriction of no cash out permits the plan:             (1) -to fund to a more valuable benefit, i.e. a 100% joint and              survivor monthly retirement benefit;             (2) -to provide a death benefit of 100 times the monthly pension until the death of the participant while the surviving spouse continues to receive the participant’s monthly benefit (vs. the traditional split funded plan where the insurance death benefit must end at normal retirement age), and;             (3) -to protect the value of this benefit from estate tax since there ‘is no distribution of this value (vs. the traditional   Read more…

Using other people’s money in our popular culture is the basis of banking. The bank loans money to homeowners to support mortgages on homes of credit worthy applicants. The bank receives a return of interest it charges for the mortgage loan. Then the bank credits savings accounts and certificates of deposit an interest rate lower than the mortgage interest it charges and lives off the spread or difference between the two interest rates. This form of arbitrage is the foundation for banking. Affluent business owners can pledge their assets as collateral for loans or go directly to the bank to fund business expansion. Recently this simple strategy has been applied to business owners to fund their own retirement plans as a significant supplement to their retirement plans above and beyond their traditional defined benefit and contribution plans. The leverage of borrowing money to fund your retirement is relatively new in retirement circles. But combining that with an old idea like using non-modified endowment life insurance contracts really amplifies the leverage and the total rate of return.  The cash values of a life insurance policy have significant tax advantages as well as investment options to create an opportunity to plan for   Read more…

There are two financial concerns for a non-profit organization: ongoing annual income and legacy lump sum gifts. Most charities receive one or the other, but not both. But there is a way for business owners to keep their assets and generate ongoing income and a legacy lump sum for their favorite charity. The strategy has two tactics: one is the use of your net worth; the other is the collateral value of your liquid assets. Many business owners have net worth that they’re not using, i.e. liquid assets to collateralize bank loans. The proper use of collateralized assets has an economic leverage in and of itself to secure bank loans. The bank needs those assets and particularly liquid assets to protect their loan positions to business owners. Business owners generally have liquid assets but they don’t want to sell them off, thus the bank loan. But in this scenario the bank loans are used to fund cash value life insurance, which has its own cash liquidity in the policy.  The first five years may have a short fall against the principle loan, so other liquid assets are collateralized during those years to make up the deficit. When the policy cash   Read more…

Findit, Inc. (OTC PINK:FDIT) reported a revenue increase in the third quarter over the same period one year ago of 178 %. With revenues of $162,591.00 versus $58,468.00, Findit, Inc. posted earnings for the 3rd quarter ending September 30, 2019 of $24,995.00 an increase of the same period last year of 532%. While the 3rd quarter has been a combination of revenue streams from their full-service social networking content management platform Findit.com it also added revenue from its first quarter of entering into the B2B CBD Topical space. With Findit’s focus on B2B sales to major retailers and distributors Findit has kept its cost down by not having traditional advertising and marketing expenses along with other fixed costs many other CBD related business models have. By eliminating these expenses, Findit has been able to operate with lower price points with margins that can still be profitable. https://www.youtube.com/watch?v=Ret4HCX7Tmw Findit recently announced it has retained the law firm of Thomas Cook to draft and file its S1 Registration form. Findit has identified the Auditors as well and is awaiting their engagement letter. Findit, Inc. is focused on building credibility with investors with its upcoming filing of its S1 Registration statement and focusing   Read more…

Instinctively clients recognize there are risks to be addressed and managed in order for their assets to support them throughout their retirement years. Most are fearful they might run out of assets before they personally run out of time. You know what I mean, don’t you? Peter Hibbard created The TCS Process© to address their concerns and manage the many risks. Timing – When do I retire? What asset do I use first when I start living off what I’ve accumulated? What asset do I use at every phase of retirement? The timing of using assets is crucial to maximizing net worth. Combining – What assets do I use in concert with other assets? Do my assets support one another in maximizing net worth and income? Perhaps unknowingly my assets are detrimental to one another and if used together, my net worth is diminished too quickly. Sequencing – We’ve found that if you consume assets in the right sequence at the right time and in combination with other assets, net worth is maximized throughout your retirement years. Using The TCS Process© provides our clients the clarity and confidence to make the decisions that secure their financial future no matter how   Read more…

Findit, Inc. (OTC PINK:FDIT), a Nevada Corporation that owns Findit.com, has submitted its 3rd quarter balance sheet, cash flow statement, income statements and OTC Markets Alternative Reporting Standard: Pink Basic Disclosure Guidelines. View Findit, Inc. 3rd quarter ending September 30, 2019 here. https://www.otcmarkets.com/stock/FDIT/disclosure About Findit, Inc. Findit, Inc., owns Findit.com which is a Social Media Content Management Platform that provides an interactive search engine for all content posted in Findit to appear in Findit search. The site is an open platform that provides access to Google, Yahoo, Bing and other search engines access to its content posted to Findit so it can be indexed in these search engines as well. Findit provides Members the ability to post, share and manage their content. Once they have posted in Findit, we ensure the content gets indexed in Findit Search results. Findit provides an option for anyone to submit URLs that they want indexed in Findit search result, along with posting status updates through Findit Right Now. Status Updates posted in Findit can be crawled by outside search engines which can result in additional organic indexing. All posts on Findit can be shared to other social and bookmarking sites by members and non-members. Findit provides Real Estate Agents   Read more…