Many attorneys earn enough income that they fall into the highest tax brackets. Looking for ways to optimize your taxes could have a significant impact on your bottom line. While we are not tax advisors, we can help you assemble a team of experienced accountants, actuaries, and third-party administrators to help you achieve success and potentially lower your tax bill.
A defined benefit plan is a sophisticated strategy that could potentially help lower your taxes and accelerate your wealth accumulation. Whether you can take advantage of a defined benefit plan depends on many factors. In general, though, these plans work best for
Business owners
With high income
Where the income is stable year-to-year
And when there are no employees or only a few employees.
A defined benefit plan could allow you to defer income tax on $100k, $200k, or more annually. If you’re able to contribute these sums to a retirement plan on an annual basis, the potential tax savings could be significant.
Here are three example scenarios where a defined benefit plan could make sense:
A personal injury attorney
Age 45
1 owner
Earning $1,000,000 annually
6 non-owner employees
Taxes are prepared as married filing jointly
$250,000 is contributed annually into a defined benefit plan
$92,500 in annual tax savings could be realized.
An estate planning attorney
Age 55
2 partners
Earning $750,000 anually
4 non-owner employees
Taxes are prepared as married filing jointly
$150,000 is contributed annually into a defined benefit plan
$54,543 in annual tax savings could be realized.
A family lawyer
Age 60
1 owner
Earning $500,000 annually
2 non-owner employees
Single tax filer
$100,000 is contributed annually into a defined benefit plan
$35,000 in annual tax savings could be realized.
For illustrative purposes only.
We don’t have a fixed minimum investment level. That being said, our team puts a lot of work into creating customized wealth strategies for each of our clients. If asset levels are too low, our costs might not make sense for you. We typically work with clients with investable assets in excess of $1 million, but we also work with many younger investors with high incomes and aggressive savings goals.
Our cost is structured as a percentage of assets under management, charged in arrears on a quarterly basis. The cost schedule is variable based on the level of assets and the scope of our work. We believe in full transparency. As a result, you clearly see what we are being paid for the value we provide. We do not receive any hidden fees or other forms of compensation. Finally, there are no lock-ups or penalties if you decide to go in a different direction.
The account opening process is handled by our skilled client service team who does all the heavy lifting. Onboarding occurs after we’ve gone through the financial planning process, mutually determined that we are a fit, and have agreed on your wealth strategy.
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