Tax-Free Income Strategies for Valuable Employees

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As fiduciary-focused specialists in retirement plan design, Thoughtful Advisors provides tax-free income plans for employers who are looking to recruit, retain and reward the very best people in their industry or profession. Our program combines the best of three highly valued employee retirement plans; the pension plan, the deferred compensation plan and tax-free withdrawals from specialized life insurance plan. Our design strategies create tax-free income for life for valuable employees.

Key Plan Benefits

  • No cost to employees
  • Very little to no cost to the employer
  • Provides tax-free income for life for employees
  • Vesting schedule chosen by the employer
  • Multi-million dollar death benefit for the employees

Thoughtful Advisors partners with a leader in the Structured Financing Industry with over 18 years in this specialty and 1,500+ client policies, totaling $8 billion+ in first year insurance premium payments, without a single client writing a premium check!

Special bank relationships with Goldman Sachs, JP Morgan, BNY Mellon and others, combined with top-tier insurance carriers Global Atlantic, Pacific Life, Zürich and others, allows Thoughtful Advisors to provide one-of-a-kind recruiting and retention strategies for executives, sales professionals, managers as well as valuable front-line employees.

Plan Details

Company Sponsored Plans – available for 1 – 49 employees

  • Each employee is medically underwritten
  • Face amount of coverage based on annual income and age of employee
  • Company elects employees vesting period
  • Company retains a portion of the death benefit before and after vesting period (if desired)

Company Owned Life Insurance (COLI) – available for 50 employees or more

  • Guaranteed issue (no medical underwriting)
  • Face amount of coverage based on number of participating employees
  • Company elects employees vesting period
  • Company retains a portion of the death benefit before and after vesting period (if desired)

Value to Business and Employees

If this all sounds too good to be true, it’s not. Understand that approximately 75% of Fortune 1000 companies and 43 of the 50 largest US banks utilize variations of this concept to recruit, retain and reward valuable employees as well as bolster their corporate balance sheets.

Many business owners and executives are familiar with these types of plans and strategies but have never been able to directly apply how a non-qualified plan could help their business. The most common reasons for this make sense; plans were too complex, had high potential costs, appeared to have high potential risks and, most importantly, the owner or executive didn’t have a fiduciary-focused resource for an objective plan proposal to review.

Our thoughtful version of non-qualified plan addresses these same concerns on behalf of owners, executives and employers. We’ve simplified the design, management and administration of plans, preserve business cash flow using specialized premium financing, add an extra level of risk mitigation with our no-cost 7-year High Cash Value Rider (HCVR) and, most importantly, allow qualified businesses to create their plan without personal guarantee(s). Our plan provides exceptional tax-efficiency for the employer and employees by thoughtfully integrating insurance premium financing with tax-favored life insurance as the funding mechanism.

Other Benefits For Premium Financed Life Insurance Plans

  • Clients Seeking Estate Tax Relief
  • Donors for Tax Smart Annual Charitable Donations
  • Businesses for Buy/Sell Agreements
  • Businesses for Key Person Policies
  • Businesses for Debt Protection
  • Business Owner(s) for Income Replacement
  • Businesses for Employee Retention Strategies
  • Businesses to Offset Employee Benefits Costs

Understand What IS Possible

Thoughtful Advisors is different than other firms you’ve worked with. Our difference is rooted in our thoughtful retirement plan design philosophy which is based on iconic observations from two world-renowned pioneers:

Sir John Templeton – “if you want to have better performance than the crowd, you must do things differently from the crowd”

Steve Jobs – “people don’t know what they want until they know what they can have”

Our commitment to each employer is to provide straight-forward and understandable advice, high quality executive and employee education along with an uncommon level of “do the right thing” professionalism.

Take the first step and understand what is possible for your business. Contact Thoughtful Advisors to find out what retirement plan designs are right for your business.

About Us

After 25+ years in financial, investment and other tax related services, I realized most business owners and successful employees weren’t getting specific actionable advice that was improving the bottom line results for themselves, their business or profession and their family. We think differently because we know that’s where value is created that benefits our clients.

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