Leveraged retirement plans

How to Leverage Your Way to Long-Term Success: Leveraged Retirement Plans

10,000 baby boomers are turning 65 every single day. According to a report from Vanguard, the median 401(k) balance of someone between the ages of 55-64 is just $177,805. More than half of Americans have no retirement accounts at all.

At Tax Reduction Concierge, we can help you with your leveraged retirement plans. Check out our brief guide on how leveraged retirement plans can help you. For a more in depth explanation, give us a call at (800) 575-8496.

Contribution Limits

As of 2018, the contribution limit for 401(k) is $18,500. Considering how long retirements last, which is about 18 years, that is not much. When you factor in certain costs like living expenses or medical care costs, that paltry amount is not going to last as long as you need it to.

With a leveraged retirement plan, there is no cap on how much you can contribute. This means that you can put away as much money as you want to, so that it can last as long as you need it to. You will eventually reach an age where you don’t want to do it anymore. Using a leveraged retirement plan may be the only way to get an adequate retirement nest-egg.

Post-Tax Contributions

We have written an entire blog post about how to avoid a tax bomb, but reiterating a few points may be useful. With a typical retirement plan, you get a tax deduction on the front end. This may seem nice, for a little while. However, when it comes time to enjoy the fruits of your labor, every dollar that you saved is taxable as ordinary income. This creates an untenable situation, where the tax bill you receive comes as a huge surprise.

With a leveraged retirement plans, both the accumulation and withdrawal steps can be tax-free if you know what you are doing. It may be a good idea to use a scalable interest-only corporate loan.

Wealth Transfer

Estate planning can be pretty tricky. The IRS is going to hit your heirs with an estate tax. If you try to transfer your wealth another way, the government might slap the gift tax on those assets.

One of the biggest benefits of leveraged retirement plans is the fact that you have a lot more flexibility when it comes to passing on the assets and property you have earned. Using a leveraged retirement plan grants you more flexibility while still maintaining cost efficiency.

Business Exit Planning

When you use a leveraged retirement plan, you are ‘front-loading’, so to speak. This means that you are taking care of your retirement nice and early. Even if you run a successful business, you are going to want to take it easy eventually.

If you have any plans to sell your business for a massive windfall, a leveraged retirement plan will have you covered. When it comes time to pony up to the negotiating table, both the buyer and the seller have more room to work with.

If you have any questions about leveraged retirement plans, contact us today. Our team of tax experts wants to make sure that you are not paying more than you have to. No one likes paying taxes, and we can cut up to 45% off of your bill. Book a live demo to learn more today.