Tax Planning

Protecting cashflow and value.

The lifeblood of every business, and therefore its best indicator of value, is cash flow. Our discussion incudes how to protect cash flow and value from unnecessary income taxation – legally, of course.

Most people and business owners tend to think that a tax plan is one that will help them reduce their income taxes. I believe a tax plan is one that puts a client in a better position financially than if they didn’t implement a tax plan. In that case, it may mean that some plans that help you reduce your taxes may actually grow less wealth than if you paid taxes on your money and did something else with it.


IRAs, 401(k) Plans, Profit Sharing Plans, Defined Benefit Plans (traditional, 412(e)3, cash balance)

There is nothing overly exotic about the above plans.

401(h) PLANS:

Virtually no one in the financial services community knows what a 401(h) plan is. It’s a sad commentary on the business, but it is what it is. A 401(h) plan is an employee benefit plan where the money goes in as a business deduction but where it is allowed to grow tax free and come out tax free. It’s tough to beat that.

The tax code as written and established by congress allows businesses to take advantage of certain opportunities to avoid paying taxes on certain income. They publish a complicated lengthy document that covers all the rules. They leave it up to you and your advisors to discover the opportunities and take advantage of them.

Are you sure you are not paying unnecessary taxes?


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