Advanced Qualified PlanDesign Model

ALEKSANDER R. DYOCo-Founder / Managing Partner

• Licensed since 2003

• Business Planning, Qualified Plans, Captive Insurance

• 2015 Top Advisor of the year by Advisory HQ

• Serial entrepreneur and investor in several other ventures

Keynote Speaker

ad·vanced plan·ning

Advanced Planning

• a package of products and services that

creates a solution for specific, complex

problems encountered by the client

• in this case, the advanced qualified

plan targets tax savings for

business owner clients

Summary of this Model

Advanced

Planning

Tools Options

Insurance

Products

Referrals

Rewards

Case Study #1 Case Study #2

Who is ideal business owner

client for these strategies?

What to Expect

Our customized qualified plans

design vs. conventional option

Q & A

Allowable Investment Options;

Recommendations and projected

commissions earning for Case #1

Recommendations and

projected commissions earning

for Case #2

Case Study #1 – Mr. & Mrs. Smith

Source: CPA Referral

Industry: Marketing/Sales of Auto Parts

Entity Type: S-Corporation/Ownership 50/50 (spouses)

Gross Revenue: $7 million

Net Income: $1 million (average)

Total # of Employees: 12

Pays $450K in taxes (avg)

Former SEP IRA users

Offers Employee Benefits

Cannot Participate in 401k

Went Through Lawsuit

Both Owners Work Full Time

Goals and Objectives

SAVE PROTECT BUILD PROVIDE

ABC Company

S-Corporation

Net Profit: $1 Million

Total Income

Mr. Smith (W-2)

Mrs. Smith (W-2)

TOTAL W-2

+K1

Taxable Income

Federal & State Tax

After-Tax Net Income

Tax Exposure: 43% / ($565,950)

Pre-Plan Situation

ABC Company

S-Corporation

Net Profit: $1 Million

Total Income

Mr. Smith (W-2)

Mr. Smith: 401(k) Deduction

Mrs. Smith (W-2)

Mrs. Smith: 401(k) Deduction

TOTAL

+ Prior K1

- CB/Aggregated Benefits, P/S

Taxable Income

Federal & State Tax

After-Tax Net Income

Tax Before Planning:

($565,950)

Retirement Benefits

Profit Sharing

(Employees)

$32K $1.02 Mil Tax After Planning:

($52,713)

Potential Tax Saving:

$513,237

160,000.00$

(24,000.00)$

130,000.00$

(24,000.00)$

242,000.00$

1,000,000.00$

(1,055,886.00)$

186,114.00$

(52,713.00)$

133,401.00$

Proposed Solution - Financials

Profit Sharing, Cash

Balance,

Aggregated Benefits

(Owners)

Impact of Financial Strategies

Plan Type

Contribution Amount

Mode

# of Years

# of Participants

TOTAL

Grand Total

401(k)

Owner 1 + Owner 2

Cash Balance,

Aggregated

Benefits & PSP

Tax

Savings

24,000.00$ 1,023,886.00$ 513,237.00$

Annual Annual Annual

5 Years 5 Years 5 Years

Two

240,000.00$ 5,119,430.00$ 2,566,185.00$

5,359,430.00$

Allowable Investment Options

• Mutual Funds and ETFs

• Put or Call Options

• Insured Savings Accounts or CDs in Banks, Credit Unions or S&L associations

• Cash, Treasury Bills and other forms of US Government Obligations

• Annuities, Group Annuities, Life Insurance

• Gold, as per IRC §408(m)(3);

• Real Estate

• Real Estate Notes

Recommendations andProjected Commissions Earning

Life Insurance (7 year pay)

- Carrier = Minnesota Life

- Premium = $150K

- Commissions = $75K

Annuity

- Carrier = Allianz

- Premium = $500K

- Commissions = $30K

Life Settlement

- Carrier = Multiple

- Premium = $150K

- Commissions = $15K

Real Estate Note

- Carrier = Multiple

- Premium = $200K

- Commissions = $4K

$1 Million$124,000.00

Commissions

$500K

$150K

$200K $150K

Our Customized Qualified Plans Designvs. Conventional Option

Customized Conventional

vs.

Case Study #2 – Mrs. Johnson

Source: Seminar

Industry: Clinical Consulting

Entity Type: S-Corporation/Ownership 100%

Gross Revenue: $10 million

Net Income: $700K (average)

Total # of Employees: 140 (4 key employees)

Pays $320K in taxes (avg)

Owner Works Full Time

Offers 401(k) plan with matching

Cannot Participate in 401k

Strong management team

Went through buyout of partner

Goals and Objectives

SAVE PROTECT BUILD PROVIDE SELL

XYZ Company

S-Corporation

Net Profit: $700K

Total Income

Mrs. Johnson (W-2)

TOTAL W-2

+K1

Taxable Income

Federal & State Tax

After-Tax Net Income

Tax Exposure: 41% / ($352,213)

Current Situation

XYZ Company

S-Corporation

Net Profit: $700K

Total Income

Mrs. Johnson (W-2)

Mrs. Johnson: 401(k) Deduction

TOTAL

+ Prior K1

- CB/Aggregated Benefits, PSP

Taxable Income

Federal & State Tax

After-Tax Net Income

Tax Before Planning:

($ 352,213)

Retirement Benefits

Profit

Sharing

(Employees)

Cash Balance, PSP,

Aggregated Benefits

(Owners)

$74K $365K

Tax After Planning:

($138,481)

Potential Tax Saving:

$213,732

150,000.00$

(24,000.00)$

126,000.00$

700,000.00$

(439,556.00)$

386,444.00$

(138,481.00)$

247,963.00$

Proposed Solution - Financials

Impact of Financial Strategies

Plan Type

Contribution Amount

Mode

# of Years

# of Participants

TOTAL

Grand Total

401(k)

Owner 1

Cash Balance,

Aggregated

Benefits & PSP

Tax

Savings

24,000.00$ 365,500.00$ 213,732.00$

Annual Annual Annual

5 Years 5 Years 5 Years

Two

120,000.00$ 1,827,500.00$ 1,068,660.00$

1,947,500.00$

Recommendations andProjected Commissions Earning

Life Insurance (10 year pay)

- Carrier = Lincoln Financial

- Premium = $65K

- Commissions = $38K

Annuity

- Carrier = Allianz

- Premium = $200K

- Commissions = $12K

Life Settlement

- Carrier = Multiple

- Premium = $100K

- Commissions = $10K

$60,000.00

Commissions$365K

$65K

$200K

$100K

P R O F I T A B L E Net Income = $500,000.00 + / Positive Cash Flow

M O T I V A T E DTo minimize/save on Taxes, minimize various Risks and

maximize Returns

O P E N - M I N D E D Values professional advice and open to new ideas

R E W A R D I N G Cares about family, community and employees

Ideal Business Owner Profile

Ideal Business Owner Profile

1. Owners/professionals seeking a higher contribution/tax deduction than the traditional 401k profit sharing maximum of $53,000 to $59,000

2. CPA and law firms, medical groups, all professional services firms.

3. Highly profitable companies of all types and sizes.

4. Successful family businesses and closely-held businesses.

5. Older owners needing to squeeze 20 yrs. of retirement saving into 5 to 10 yrs.

6. Owners/partners looking for a way to fund stock redemption or buy-sell agreements on a tax deductible basis.

7. Wealthy owners and professionals with Charitable Giving Intentions stymied by the limitations on tax deductibility. QPs = No AGI Limitations

Contact Information

1055 W. 7th Street Suite 3260

Los Angeles, CA 90017

Office: (800) 811 - 6611

http://www.ProfectusFinancial.com

For a copy of this presentation and more information,

text “PF” to 72000