Tax planning is an integral part of any investment management decision. When you prepare for the future, you should think ahead to retirement where your financial security is at risk. At Advanced Pension Programs Inc., there is no such thing as “too late” when protecting your financial future and guaranteeing your funds will be available when you need them.
Example # 1
John Smith, age 45, has a diversified portfolio of stocks and bonds. He has accumulated a total life savings of $350,000. His goal is to systematically save every year to achieve his target goal of $1,000,000 at age 65. However, at age 55, a 2008 type of recession occurs, reducing his life savings down to $100,000 – because John’s stocks and bonds offered no guarantees.
What does John do? What would you do?
If John had taken full advantage of our services, and implemented a plan that offered a written guarantee of his funds, he would still have his full $350,000 with a strong potential to still reach his goal of $1,000,000 at age 65.
Example #2
Joe Jones, earns an annual salary of $125,000 and participates in his employer sponsored pension plan – which promises him a benefit at retirement age 65 of $100,000/year for the rest of his life. However, at age 44, Joe is in an accident and becomes disabled. Because he has a disability income policy in place, he will receive up to 60% of his income, but will still lose 40%. Additionally, while he is on disability, his employer stops making contributions to his pension plan. As a result of his employer no longer making contributions to his retirement plan, at age 65, Joe’s pension has only accumulated enough to pay him $60,000/year for the rest of his life.
What does Joe do? What would you do?
If Joe had taken full advantage of our services, and implemented a plan that offered a written guarantee, when he reached his retirement age of 65, his retirement plan would have still accumulated enough to pay him the $100,000 / year for life that he was initially promised.
Example #3
Richard Smith and Henry Smith are co-owners of a 35 employee company. Richard serves as the company’s CEO, and Henry serves as the company’s COO. The business has been experiencing year over year growth since its’ founding 12 years ago. Richard suddenly contracts COVID-19 and is hospitalized, ultimately passing away several weeks later. Henry is now faced with the daunting task of finding a replacement for Richard, an enormous challenge given Richard’s expertise, accumulated relationships, and unparalleled experience with all of the company’s dealings since it’s inception. To further complicate matters, Richard named his wife as his beneficiary, which means she inherits Richard’s assets – including his stake in the company. She now has equal say in how the company operates and begins demanding changes that Henry strongly disagrees with and feels will severely hurt the business.
What does Henry do? What would you do?
If Richard and Henry had taken full advantage of our services, and implemented a plan that offered a written guarantee, when Richard passed away, the company’s retirement plan could have purchased his stake in the company – using pre-tax dollars. This would give the company the funds needed to sustain itself while searching for Richard’s replacement and would make Henry the company’s sole decision maker.
Wealth Distribution
Once your target goals are achieved, we can show you options to receive your funds in one lump or receive installments paid over a certain number of years (or even over your lifetime). We implement another tax efficient program that again guarantees that you will not run out of money by planning for any unforeseen contingencies.
