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– DBPlans@dedicated-db.com

– www.onepersonplus.com

Art Leaffer Co-Founder of Dedicated DB Designing retirement products for 30 years Contact me anytime:

– 415-492-1777

– Art.Leaffer@Dedicated-DB.com