James is 64, and a few years ago started up a Consulting Company (Consulting Corp) with his business partner Dave. They have acquired some lucrative contracts over the last couple of years, and after spending frugally his entire life, James is starting to enjoy his newly created wealth. James is divorced and makes alimony payments in the amount of $100,000/yr. on top of his $500,000/yr. in living expenses. Because the wealth and income generated by the company is recent, James has not accumulated much in the way of liquid assets yet, but the company value is significant and future profits look very promising.
The primary planning goals are to:
Make sure that he has sufficient funds to live on for the rest of his life (approx. $600,000/yr., including alimony, after taxes and gifts).
Reduce income taxes.
Maximize the inheritance that he leaves to his children and grandchildren. Consider passing his business interests to his children involved in the industry while providing an equal inheritance of non-business interests to those that are uninterested.
Assure that he has sufficient liquid assets available at his death to eliminate the forced liquidation of his business assets.
Eliminate or reduce estate taxes.
InKnowVision November 2012 Case Study - Basic Family Wealth Goal AchieverInKnowVision
Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M.
The primary planning goals are to:
Make sure that they have sufficient funds to live on for the rest of their lives
Maximize what they leave to their children and grandchildren
Increase the amount of charitable giving that they are currently doing
Equalize the financial positions of their son and daughter
Make a substantial provision for charity in place of estate tax if possible
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
The primary planning goals are to:
Provide for the financial security of the surviving spouse.
Maintain Carter Manufacturing as a viable company in their hometown after they exit the business.Maintain their customary lifestyle and gifting. This should take approx. $650,000 annually after taxes.
Eliminate or reduce estate taxes.
Maintain adequate gifting to their children and grandchildren. Their main priority is providing funds for their grandchildren’s educations.
Maximize the inheritance they leave to their children and grandchildren.
Establish a family foundation for lifetime and future family charitable giving.
Learn more at www.inknowvision.com
Taylor Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth. As part of Chris’s retirement package, he has an annual pension payment of approx. $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000. As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The main planning objective is to take advantage of the lifetime gifting exemption ($5M each) while it is still available. This is due in part to the large concentration of conservatively invested assets that are growing inside Chris and Beth’s estate. In addition, they are looking to preserve enough assets in order to provide sufficient cash flow that will ensure a comfortable lifestyle with flexibility during retirement.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Anderson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio that generates more than $1.7M/yr. in income and various oil/gas ventures that generate over $100k/yr. in income. With annual income totaling over $5M/yr. for the family, they have the luxury of accumulating a very significant cash flow surplus each year.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Advanced Planning For the Ultra High Net Worth.The recordings for this program can be found at http://tinyurl.com/6yojnrt.
Learn more at www.inknowvision.com
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
InKnowVision November 2012 Case Study - Basic Family Wealth Goal AchieverInKnowVision
Tom is 83 and Jane is 76. They have two children who are both well employed and live productive and happy lives. Tom was an attorney who headed a large patent firm in Washington DC. Jane served as an expert in international trade for much of her professional life. During the latter part of his career, Tom agreed to do work for a start up company that became very successful. Today, Tom’s share of the company is valued at $3.2M but generates $1.4M-$1.5M per year in taxable distributions. Several years ago, the company spun out one of its divisions and took the new company public. It has seen massive growth; almost no dividends have been distributed, and the company has a value to Tom today of approximately $6.4M. Tom and Jane also have approximately $5.2M in cash, $3.2M in retirement funds, and real estate of $4M for a total net worth of about $22M.
The primary planning goals are to:
Make sure that they have sufficient funds to live on for the rest of their lives
Maximize what they leave to their children and grandchildren
Increase the amount of charitable giving that they are currently doing
Equalize the financial positions of their son and daughter
Make a substantial provision for charity in place of estate tax if possible
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
The primary planning goals are to:
Provide for the financial security of the surviving spouse.
Maintain Carter Manufacturing as a viable company in their hometown after they exit the business.Maintain their customary lifestyle and gifting. This should take approx. $650,000 annually after taxes.
Eliminate or reduce estate taxes.
Maintain adequate gifting to their children and grandchildren. Their main priority is providing funds for their grandchildren’s educations.
Maximize the inheritance they leave to their children and grandchildren.
Establish a family foundation for lifetime and future family charitable giving.
Learn more at www.inknowvision.com
Taylor Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth. As part of Chris’s retirement package, he has an annual pension payment of approx. $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000. As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The main planning objective is to take advantage of the lifetime gifting exemption ($5M each) while it is still available. This is due in part to the large concentration of conservatively invested assets that are growing inside Chris and Beth’s estate. In addition, they are looking to preserve enough assets in order to provide sufficient cash flow that will ensure a comfortable lifestyle with flexibility during retirement.
Learn more at www.inknowvision.com
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Chris is 68 and Beth is 59. Chris has recently just retired from an executive position in a public company. They have always led a relatively simple and conservative lifestyle and as a result have built up a very significant, and liquid, net worth.
As part of Chris’ retirement package, he has an annual pension payment of approximately $360,000 (inflating). The pension alone is enough to cover their annual living expenses of $230,000.
As a result, they have a large annual cash flow surplus created by the $400k in annual dividends from their equity portfolios and their tax-exempt income from municipal bond portfolios totaling $1.1M.
The primary planning goals were to:
Make sure that they have sufficient funds to live on for the rest of their lives (approximately $230,000 after taxes and gifts).
Provide for the financial security of the surviving spouse.
Create an inheritance for their children which protects them from any potential future creditors and/or predators.
Provide a charitable gift at death as long as it doesn’t greatly diminish the amount they pass to their heirs.
Eliminate or reduce estate taxes.
Anderson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio that generates more than $1.7M/yr. in income and various oil/gas ventures that generate over $100k/yr. in income. With annual income totaling over $5M/yr. for the family, they have the luxury of accumulating a very significant cash flow surplus each year.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever- InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Bueller Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Advanced Planning For the Ultra High Net Worth.The recordings for this program can be found at http://tinyurl.com/6yojnrt.
Learn more at www.inknowvision.com
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Griffin Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
John is 48 and recently divorced with two young children. He currently spends about $200,000 a year after taxes. John owns and operates a trucking company which creates significant taxable income each year in excess of $2M. This income is somewhat deceiving because it’s not really free cash to John. Instead, he uses the profits to plow back into his business so that he can purchase and transport more product. In this planning scenario, it is essential that John have the ability to push all of his company profits each month back into the business to build and grow value for future sale.
Learn more at www.inknowvision.com
Thomason Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
TORONTO – The Investment Funds Institute of Canada (IFIC) released a seminal report
– The Value of Advice: Report - which provides a clear, unbiased view of what advice means to
the financial well-being of Canadians and how it builds their confidence in their financial future.
Morgan Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
This redacted advanced estate planning and tax planning design plan covers the facts and circumstances, the Family Wealth Goal Achiever Process, and the solutions used in the case.
Learn more at www.inknowvision.com
Session on Impact Models, Business Models for Impact and Impact Measurement / Metrics design. Jakarta 2012. Features some sophisticated tools for social innovation.
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision December 2013 Case Study - Watson FWGAInKnowVision
Ben and Sara Watson are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business that has allowed them to acquire and accumulate oil and gas rights totaling $30M over the last 5 years. These oil and gas rights are generating in excess of $1.5M a year on top of the $925k of income from their separate drilling and maintenance business. Ben and Sara have 3 daughters. Their youngest daughter, Katie, and her husband have played key roles in growing Watson Drilling. Ben would like to begin transitioning the business to them and ultimately leave them with the benefit of the business. With the business going to just one of the daughters, Ben and Sara want to equalize the inheritance to their other two daughters. For this, they have already purchased four whole life insurance policies. Two of these policies have significant loans against them and very little cash surrender value. With premiums totaling $400k for the four policies, all owned inside their estate, and insufficient death benefit to cover potential estate taxes and equalize the daughters’ inheritances, these policies may not meet the family’s needs.
The primary planning goals are to:
-Maintain their customary base lifestyle need of $250,000, with approximately another $750,000 for discretionary and other expenses.
-Provide for the financial security of the surviving spouse.
Provide a succession plan that will allow for a smooth transition of Watson Drilling to their daughter, Katie.
-Assure they have sufficient liquid assets available at their deaths to eliminate the forced liquidation of business or real estate assets.
-Maximize the inheritance that they leave for their children and grandchildren.
InKnowVision November 2013 HNW Technical PPT - Liquidity PlanningInKnowVision
In this presentation we looked at the problem seen in many large estates - the lack of liquidity to deal with estate equalization, estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
View this recording to see various designs for creating liquidity.
InKnowVision March 2013 HNW Technical PPT - Liquidity Needs in Estate PlanningInKnowVision
In this presentation we’ll be looking at the problem seen in many large estates - The lack of liquidity to deal with estate equalization and liquidity for areas such as estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
In this session we will look at various designs for creating liquidity.
InKnowVision August 2012 HNW Marketing WebinarInKnowVision
• How to help HNW clients identify new non-traditional threats
• What to do to prevent or eliminate them
• Where to find the resources
• Why doing this now can help your business grow
Learn more at www.inknowvision.com
Griffin Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
John is 48 and recently divorced with two young children. He currently spends about $200,000 a year after taxes. John owns and operates a trucking company which creates significant taxable income each year in excess of $2M. This income is somewhat deceiving because it’s not really free cash to John. Instead, he uses the profits to plow back into his business so that he can purchase and transport more product. In this planning scenario, it is essential that John have the ability to push all of his company profits each month back into the business to build and grow value for future sale.
Learn more at www.inknowvision.com
Thomason Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
TORONTO – The Investment Funds Institute of Canada (IFIC) released a seminal report
– The Value of Advice: Report - which provides a clear, unbiased view of what advice means to
the financial well-being of Canadians and how it builds their confidence in their financial future.
Morgan Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
This redacted advanced estate planning and tax planning design plan covers the facts and circumstances, the Family Wealth Goal Achiever Process, and the solutions used in the case.
Learn more at www.inknowvision.com
Session on Impact Models, Business Models for Impact and Impact Measurement / Metrics design. Jakarta 2012. Features some sophisticated tools for social innovation.
InKnowVision July 2014 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Review the recording as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision December 2013 Case Study - Watson FWGAInKnowVision
Ben and Sara Watson are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business that has allowed them to acquire and accumulate oil and gas rights totaling $30M over the last 5 years. These oil and gas rights are generating in excess of $1.5M a year on top of the $925k of income from their separate drilling and maintenance business. Ben and Sara have 3 daughters. Their youngest daughter, Katie, and her husband have played key roles in growing Watson Drilling. Ben would like to begin transitioning the business to them and ultimately leave them with the benefit of the business. With the business going to just one of the daughters, Ben and Sara want to equalize the inheritance to their other two daughters. For this, they have already purchased four whole life insurance policies. Two of these policies have significant loans against them and very little cash surrender value. With premiums totaling $400k for the four policies, all owned inside their estate, and insufficient death benefit to cover potential estate taxes and equalize the daughters’ inheritances, these policies may not meet the family’s needs.
The primary planning goals are to:
-Maintain their customary base lifestyle need of $250,000, with approximately another $750,000 for discretionary and other expenses.
-Provide for the financial security of the surviving spouse.
Provide a succession plan that will allow for a smooth transition of Watson Drilling to their daughter, Katie.
-Assure they have sufficient liquid assets available at their deaths to eliminate the forced liquidation of business or real estate assets.
-Maximize the inheritance that they leave for their children and grandchildren.
InKnowVision November 2013 HNW Technical PPT - Liquidity PlanningInKnowVision
In this presentation we looked at the problem seen in many large estates - the lack of liquidity to deal with estate equalization, estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
View this recording to see various designs for creating liquidity.
InKnowVision March 2013 HNW Technical PPT - Liquidity Needs in Estate PlanningInKnowVision
In this presentation we’ll be looking at the problem seen in many large estates - The lack of liquidity to deal with estate equalization and liquidity for areas such as estate taxes and charitable funding.
Many of our clients have significant private businesses or extensive real estate holdings that represent a large percentage of the family wealth. There is often a large shortage of liquidity to deal with the division of these illiquid assets among family members as well as pay any estate taxes that may be levied on the estate. Of course if estate taxes do need to be paid there is a limited window when money can be raised and often times this means selling property at a less than opportune time.
In this session we will look at various designs for creating liquidity.
InKnowVision August 2012 HNW Marketing WebinarInKnowVision
• How to help HNW clients identify new non-traditional threats
• What to do to prevent or eliminate them
• Where to find the resources
• Why doing this now can help your business grow
Learn more at www.inknowvision.com
InKnowVision February 2013 HNW Marketing PPTInKnowVision
In this 25 minute HNW marketing webinar you will learn:
What current trends are driving HNW planning
How successful HNW Marketing retooling can bring new opportunities
Why Content Marketing is the #1 strategy in the search for top HNW advisors
When your existing book of business is your best HNW lead source
InKnowVision strives to bring you the most current marketing strategies to stay on top of your HNW prospect and client opportunities. We hope you will join us for this informative live HNW marketing webinar.
InKnowVision October 2013 Case Study - Lewis FWGAInKnowVision
Duncan and Tina are both 65. They live a comfortable lifestyle, spending about $1,600,000 a year after taxes and gifting about $2,000,000 a year to their family foundation. With assets worth approximately $62M and annual income of over $7M, they currently pay just over $2M a year in income taxes and have an increasing estate tax and ongoing income tax exposure.
The primary planning goals are to:
-Make sure that they have sufficient funds to live on for the rest of their lives (approx. $1,600,000/yr. after taxes and gifts).
-Assure that Duncan's, Inc. does not have to be liquidated as a result of their death.
-Provide a successful transition of the business to their son, Jason, while ensuring an equal inheritance for their son, Jeremy. They would like to leave 50% of their estate to Jason & Jeremy and another 25% to their grandchildren and other family members.
-They wish to continue annual giving to their family foundation and ultimately leave 25% of their estate to the foundation at death.
-Make sure the company buy/sell agreement accurately reflects the wishes of the family owners in the most tax efficient manner possible.
-Eliminate or reduce estate taxes.
InKnowVision HNW Marketing Webinar: Success with the InKnowVIsion ProcessInKnowVision
Over the last 10 years, InKnowVision has had the pleasure of working with numerous advisors, assisting them with their high net worth clients.
Join us as we spend 45 minutes walking through process and protocols that have been used time and again to help you to:
• Position yourself to attract high net worth clients and
• Succeed by helping your high net worth clients to identify and reach their goals
Jackson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
In this case we used a Charitable Life Estate as a planning too.
This infrequently used technique can be very powerful when working with high net worth clients.
We will look at a couple examples where InKnowVision has used this structure to create significant income and estate tax savings and paired this technique with wealth replacement trusts in order to deliver full value to the family.
In this presentation we will explore how to present the concept to clients and also take a look into the variables that go into the ultimate calculation.
Learn more at www.inknowvision.com
Donfrio Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
The Family Wealth Goal Achiever™ is a plan design book (like a blueprint) that explains in easy to understand text and graphics the planning ideas being recommended by the planning team. It solves for high net worth tax planning, advanced estate planning, business transition planning, asset protection planning.
Learn more at www.inknowvision.com
Carter Family Wealth Goal Achiever - InKnowVision Advanced Estate Planning InKnowVision
Jerry and Susan Carter are both 63. They own and operate a very profitable manufacturing business in a small town. Jerry and Susan spend about $650,000 a year, giving generously to family ($200,000/yr.) and their favorite charitable causes ($150,000/yr.). Although the business provides significant taxable income of over $5M a year, Jerry and Susan have been re-investing excess cash back into the business to keep it thriving through the latest recession. With assets totaling over $60M, a growing business and an income tax bill surpassing $2M/yr., their estate tax and income tax exposure is quickly increasing.
Learn more at www.inknowvision.com
WFG - Helping People Create Better Financial Futurespetervinhong
This presentation gives an overview of why WFG associates go to work each day: to build and protect wealth for families and individuals. It overviews the six components of WFG\'s financial needs analysis and describes fundamental financial concepts and strategies - such as the rule of 72 - that can help people secure their financial futures.
InKnowVision June 2014 HNW Case Study - Martin FWGAInKnowVision
Jim and Jan are 60 and 52 respectively. Several years ago they started up a national sales and education business. After a few years getting the business off the ground and building their intellectual property, the capture of new markets and increased margins are generating rapidly increasing revenues and profits. As a result, they have recently been approached by a 3rd party buyer and it has motivated them to begin thinking about their business succession plan. Their eldest son has become very involved in the business, playing an ever increasing role in day to day operations, and would like to take the business over at some point.
Their current net worth is approx. $22M with $20M tied up in the business. Until now, all of the profits were reinvested into the business to help generate their rapid growth. Jim and Jan feel they can finally afford to distribute some of the excess profits and begin to plan for their future retirement.
The primary planning goals are to:
- Build personal wealth outside of the business.
- Create a business succession/transition plan.
- Equalize the inheritances for their children.
- Provide pathways into the business should their other 3 sons decide to participate.
- Support their church and other community causes through charitable planning.
- Protect the business and family wealth from estate taxes
InKnowVision March 2014 Buy-Sell Problem Solver Case StudyInKnowVision
Last month we unveiled our Buy-Sell Problem Solver™ client engagement tool which includes:
- Legal Audit
- Tax Minimizer
- Value Identifier
- Funding Review
This new tool is specifically designed to help advisors quickly engage new business clients and uncover advanced planning opportunities.
View the recording for a case study showing how InKnowVision’s Buy-Sell Problem Solver™ led to a comprehensive planning engagement with a family business worth over $100M.
The owners of this successful family business thought they were doing everything right:
- They had a buy-sell agreement in place
- Their agreement was fully funded with insurance
- They continually updated their insurance to keep pace with the growing company value
Unfortunately, the agreement they had in place was going to cost the family millions of dollars in unnecessary taxes when it was triggered. Join us to learn how we helped this family solve a significant problem they didn’t know they had.
Who should attend:
- Investment Advisors
- CPAs
- Attorneys
- Insurance Professionals
InKnowVision February 2014 Case Study - Anderson FWGAInKnowVision
Jeff is 75 and Theresa is 72. Jeff recently retired from an executive position in a public company. As a result of his retirement he exercised over $45M in stock options and has 5 more years of deferred compensation payments. Jeff has also sold his 50% interest in his Corporation and the note payments are providing significant income for the next 9 years.
Jeff and Theresa have annual living expense desires of $725,000, with the available income to more than meet this need. Jeff’s deferred compensation payments average more than $2M/yr. for the next 5 years; his annual pension payments are $660k/yr. (inflating); and he also has note payments totaling $360k/yr. for the next 9 years from the buyout of his Corporation interests. These sources of income are in addition to an investment portfolio in excess of $60M that comprises a large portion of their $90M net worth.
The primary planning goals are to:
- Provide an inheritance to their children in a manner which will enable them to create opportunities for themselves but not encourage them to be unproductive.
- Provide for a charitable gift at death to their family foundation as long as it doesn’t greatly diminish the amount they pass to their heirs.
- Eliminate or reduce estate taxes.
InKnowVision September 2013 Captive Insurance PowerpointInKnowVision
After completing this course, you will be able to:
- Identify the benefits of Captive Insurance companies
- Differentiate which clients would be ideal for a Captive
- List the necessary steps to form a Captive
- Define and address Captive tax issues
- Apply all of the processes to form a successful Captive Insurance company
InKnowVision August 2013 HNW Technical PPT - Family BanksInKnowVision
One of the common themes that we continue to see among our clients is the idea that leaving too much money to children will spoil them. InKnowVision often employs the family bank concept to help people understand how they can re-gain control in this complex area.
Join us as we look at this interesting concept and understand how to present it to clients, how to determine the client profile for this strategy and how to implement this type of planning.
InKnowVision July 2013 HNW Marketing PPTInKnowVision
Using HNW Content on LinkedIn to Market Your Firm
In this high net worth marketing webinar, we will focus on using HNW content on LinkedIn.
You will learn:
- How using HNW content on LinkedIn attracts your ideal client, referral sources and more
- Why regular updates to your LinkedIn profile using HNW content matters
- Which types of content posted on LinkedIn actually make a difference
Join us for the fourth part of our HNW Content Marketing Series. We will also be featuring a short Q&A with a current Educate2Motivate customer who will describe how content marketing has helped him reach his target market.
InKnowVision July 2013 HNW Technical PPT - Split DollarInKnowVision
This concept, which most people thought went away ten years ago with changes in the law, is still a very vibrant technique. Pair it with several other techniques for high net worth clients and you have a powerful solution for wealth transfer.
Join us as we look at some of the simple strategies for bringing this particular technique to life and learn how to present it to your clients and planning partners as a significant solution in the wealth transfer arena.
InKnowVision June 2013 HNW Marketing PPTInKnowVision
5 HNW Content Strategies You Won't Want To Miss
Recently we’ve shared with you why you need to use high net worth content and how to find it. Now it’s time to learn how to deploy high net worth content and start measuring your results.
In this high net worth marketing webinar, we will show you:
-What top 5 strategies are most important in reaching the high net worth
-How these top 5 strategies are used to deploy high net worth content
-Why they have the most impact on your high net worth audience
-Who will benefit most using these 5 top strategies
InKnowVision June 2013 HNW Technical PPT - Buy Sell PlanningInKnowVision
"Buy Sell Planning"
Redemption, cross purchase, hybrid or entity. Which is the best way to approach a buy sell for your clients? How best to fund the buy sells? And should you be using these agreements at all? Each of these will be on the table for discussion during this engaging session.
InKnowVision May 2013 HNW Marketing PPT - Content Marketing Part IIInKnowVision
In this session, we’ll discuss how HNW content marketing is measured and what return on investment you can expect when implementing even the simplest content marketing strategies.
Content marketing is a multiplier strategy, meaning that you can leverage one piece of content up to 10 different ways. Talk about a return on your investment!
The key however is to deliver exceptional content on a consistent basis. When it comes to the high net worth, content marketing will make the largest impact in creating “online” trust and lead nurturing hands down.
This will be 25 minutes of jam packed content marketing information you won’t want to miss.
InKnowVision February 2013 HNW Technical PPT - Captive InsuranceInKnowVision
Scott Hamilton, CEO of InKnowVision, will discuss the use of captive insurance companies for estate planning, business tax planning, risk management and income tax benefits. All of these benefits can be substantial for the right company. As a CPA, attorney or financial advisor you will want to learn about captive insurance planning to help your clients reduce their tax liability, transfer more wealth out of their estate, manage risk, and much more.
This program is ideal for those who wish to reach the HNW market and those who have business clients with gross revenues of $10M and higher.
InKnowVision January 2013 HNW Marketing PPTInKnowVision
In this 30 minute webinar, you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
Learn more at www.inknowvision.com
InKnowVision November 2012 HNW Marketing PPTInKnowVision
2013 is Poised to be a Banner Year for HNW Planners:
Will you be one of them?
In this 25 minute HNW marketing webinar you will learn:
Why $30M-$49M in net worth is the fastest growing segment
How you can attract these HNW clients
What three new marketing messages you must use in 2013
Why you need to prepare your marketing plan now
InKnowVision November 2012 Special HNW Marketing Webinar - Tom KaszaInKnowVision
Our guest speaker Tom Kasza of Hillard Heintze will educate us on why HNW clients need a security strategy today. By designing and implementing security strategies your HNW client can be prepared for managing unforeseen personal security risks.
You will learn:
How to introduce this service to your HNW clients
How it will elevate you in your HNW market place
How to identify potential risks to your HNW clients
InKnowVision October 2012 HNW Technical Webinar w/ Guest Presenter Bob ScarlataInKnowVision
As an investment banker for some 26 years who has sold dozens of middle market privately held companies to private equity groups throughout the U.S. and Canada, Bob Scarlata will describe for us how private equity groups make their money and how private business owners can benefit and profit from their professional management strategies.
Watson Family Wealth Goal Achiever - InKnowVision Advanced Estate PlanningInKnowVision
Ben and Sara are 55 and 54 respectively. They own and operate a very profitable well drilling and maintenance business. These growing annual profits have allowed them to continue purchasing significant oil and gas rights and land that has increased their net worth by $30M in 5 years. Ben and Sara spend about $250K a year and want approximately another $750K a year for discretionary and other expenses. Their business currently generates $925K of taxable income and they have depreciation and depletion add back of over $1.5M which provides significant income tax deductions and free cash flow.
Learn more at www.inknowvision.com
InKnowVision June 2012 HNW Marketing WebinarInKnowVision
In this HNW marketing webinar you will learn:
Why your conversations with the HNW need to change.
What new opportunities will drive your HNW business.
How you can prepare for the changes ahead.
Learn more at www.inknowvision.com
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Honest Reviews of Tim Han LMA Course Program.pptxtimhan337
Personal development courses are widely available today, with each one promising life-changing outcomes. Tim Han’s Life Mastery Achievers (LMA) Course has drawn a lot of interest. In addition to offering my frank assessment of Success Insider’s LMA Course, this piece examines the course’s effects via a variety of Tim Han LMA course reviews and Success Insider comments.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
The Roman Empire A Historical Colossus.pdfkaushalkr1407
The Roman Empire, a vast and enduring power, stands as one of history's most remarkable civilizations, leaving an indelible imprint on the world. It emerged from the Roman Republic, transitioning into an imperial powerhouse under the leadership of Augustus Caesar in 27 BCE. This transformation marked the beginning of an era defined by unprecedented territorial expansion, architectural marvels, and profound cultural influence.
The empire's roots lie in the city of Rome, founded, according to legend, by Romulus in 753 BCE. Over centuries, Rome evolved from a small settlement to a formidable republic, characterized by a complex political system with elected officials and checks on power. However, internal strife, class conflicts, and military ambitions paved the way for the end of the Republic. Julius Caesar’s dictatorship and subsequent assassination in 44 BCE created a power vacuum, leading to a civil war. Octavian, later Augustus, emerged victorious, heralding the Roman Empire’s birth.
Under Augustus, the empire experienced the Pax Romana, a 200-year period of relative peace and stability. Augustus reformed the military, established efficient administrative systems, and initiated grand construction projects. The empire's borders expanded, encompassing territories from Britain to Egypt and from Spain to the Euphrates. Roman legions, renowned for their discipline and engineering prowess, secured and maintained these vast territories, building roads, fortifications, and cities that facilitated control and integration.
The Roman Empire’s society was hierarchical, with a rigid class system. At the top were the patricians, wealthy elites who held significant political power. Below them were the plebeians, free citizens with limited political influence, and the vast numbers of slaves who formed the backbone of the economy. The family unit was central, governed by the paterfamilias, the male head who held absolute authority.
Culturally, the Romans were eclectic, absorbing and adapting elements from the civilizations they encountered, particularly the Greeks. Roman art, literature, and philosophy reflected this synthesis, creating a rich cultural tapestry. Latin, the Roman language, became the lingua franca of the Western world, influencing numerous modern languages.
Roman architecture and engineering achievements were monumental. They perfected the arch, vault, and dome, constructing enduring structures like the Colosseum, Pantheon, and aqueducts. These engineering marvels not only showcased Roman ingenuity but also served practical purposes, from public entertainment to water supply.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Acetabularia Information For Class 9 .docxvaibhavrinwa19
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How to Make a Field invisible in Odoo 17Celine George
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Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
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2. FAMILY WEALTH GOAL ACHIEVER™ - INITIAL
PREPARED FOR:
JAMES MYER
March 1, 2012
Draft for discussion purposes only
PRESENTED BY
Scott Hamilton
InKnowVision, LLC
715 Enterprise Dr.
Oak Brook, IL 60523
Phone: 630-596-5090
Copyright 2012 InKnowVision, LLC
3. YOUR GOALS AND OBJECTIVES
JAMES MYER
Your Objectives:
Maintain my customary lifestyle. This should take about $500,000 annually. This does not include taxes, gifts
and alimony payments.
Reduce income taxes.
Maintain adequate liquidity for emergencies and investment opportunities. I prefer to keep at least $1,000,000
in cash and readily marketable securities.
Family Objectives:
Maximize the inheritance that I leave to my children and grandchildren. Consider passing my business interests
to my children involved in the industry while providing an equal inheritance of non-business interests to those
that are uninterested.
Assure I have sufficient liquid assets available at my death to eliminate the forced liquidation of my business
assets.
Charity Objectives:
Consider providing a charitable gift at death if it helps reduce taxes.
Tax Objectives:
Eliminate or reduce estate taxes.
Page 2
4. PERIODIC TABLE OF ESTATE PLANNING ELEMENTS - RECOMMENDED
JAMES MYER
The highlighted tools are those we have determined are most suited to achieving your goals and objectives.
Charitable
Family Limited Grantor Retained Charitable Lead
Remainder Uni- 412(e) Private Annuity SCIN
Liability Company Annuity Trust Annuity Trust
Trust
Qualified Personal Sale for Installment Series Limited GDOT Owned Life
Family LLC TCLAT Flip CRT
Residence Trust Note Liability Company Insurance
Preferred Limited Long Term Care Corporate
Premium Finance 529 Plans Gifting ILIT
partnership Insurance Recapitalization
Charitable Life Annuity
Walton GRAT Private Foundations NIMCRUT Asset Protection SPIA/Life Arbitrage
Estate Withdrawal
Principal Protected Will, DPAs and International
SPIA/Life in a CLAT Crummey Powers Dynasty Trust GDOT
Notes POAs VUL
Supporting Qualified Plans to Captive Insurance
Gift Annuity Remainder Sales Life Estates LLC/CRTs
Organizations Charity Company
Charitable Defined Benefit
Succession Qualified Plan
Bargain Sales Buy/Sell Agreement Remainder Annuity ESOP Planning Plans - Cash
Planning Limited Partnership
Trust Balance
Green equals a new Blue equals a social Yellow equals an
planning tool for capital or existing planning
family charitable tool tool
Page 3
6. PERSONAL LIVING EXPENSES vs. AVAILABLE CASH FLOW
JAMES MYER
$3,500,000
$3,000,000
$2,500,000
Note payments cease and built up
$2,000,000 cash/securities/retirement funds
support cash flow needs
-
$1,500,000
$1,000,000
$500,000
$-
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Proposed Living Expenses Proposed Annual Cash Flow
This illustration compares your living expenses under the proposed plan as against your annual cash flow available.
Page 5
7. PERSONAL LIQUID ASSETS AVAILABLE
JAMES MYER
$14,000,000
Note payments from Trust
end
$12,000,000
$10,000,000
Assumed retirement - Buy-
out payments begin
$8,000,000 -
$6,000,000
$4,000,000
$2,000,000
$-
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This illustration reflects the amount of liquid assets available to you during life under a fully implemented proposed plan. Liquid assets include cash,
securities, bonds (corporate and municipal), annuities and retirement funds.
Page 6
9. COMPARISON OF PLAN RESULTS - PLAN YEAR 2012
JAMES MYER
Existing Plan Proposed Plan Advantage
Estate Value $ 19,746,606 $ 12,453,336
Heirs Receive Immediately $ 15,026,286 $ 25,609,437 $ 10,583,150
Total Benefits to Family $ 15,026,286 $ 25,609,437 $ 10,583,150
Estate and Income Tax $ 5,334,154 $ 4,557,036 $ 777,118
This chart assumes that you die this year and compares the results of the current plan with the proposed plan.
Page 8
10. COMPARISON OF PLAN RESULTS - PLAN YEAR 2031
JAMES MYER
Existing Plan Proposed Plan Advantage
Estate Value $ 40,710,287 $ 10,166,402
Heirs Receive Immediately $ 18,847,318 $ 37,001,946 $ 18,154,628
Total Benefits to Family $ 18,847,318 $ 37,001,946 $ 18,154,628
Estate and Income Tax $ 22,267,166 $ 6,275,623 $ 15,991,544
Present Value of total to Heirs $10,748,362 $21,101,693
Discount rate for PV calculation 3.00%
This chart assumes that you die at life expectancy and compares the results of the current plan with the proposed plan.
The present value of the total passing to heirs is our attempt to put inheritance into today's dollars to provide perspective.
We are using an inflation rate of 3% to calculate the present value numbers.
Page 9
11. ASSETS PASSING TO YOUR FAMILY - CURRENT VS. PROPOSED
JAMES MYER
$40,000,000
$35,000,000
$30,000,000
$25,000,000
-
$20,000,000
$15,000,000
$10,000,000
nt
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Current Plan Proposed Plan Proposed Plan - No Insurance
This chart compares the amount of your assets that will pass to heirs after estate taxes and costs of implementation in the current plan as against the
proposed plan.
Page 10
12. PROJECTED ESTATE TAXES - CURRENT VS. PROPOSED
JAMES MYER
$24,000,000
$21,000,000
$18,000,000
$15,000,000
-
$12,000,000
$9,000,000
$6,000,000
$3,000,000
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This chart compares the projected estate taxes in the current plan as against the proposed plan.
Page 11
13. INTRODUCTION TO THE PLAN STRATEGIES ROADMAP
JAMES MYER
The following section of the plan contains a step by step roadmap for each of the strategies that we are recommending.
You will notice that the strategies are often interdependent; that is, in order for one strategy to be successful, you must
complete another strategy as well. It is the integration of each of these strategies that allows you to most efficiently
accomplish your goals.
Also keep in mind that there is often more than one way to get from point A to point B. This is true in wealth transfer
planning. If a particular strategy or combination of strategies is not acceptable to you, we may be able to reach the desired
result in a less efficient but perhaps more acceptable way.
The following pages are a conceptual road map only. There are numerous details contained in each strategy that are not
detailed in the overall plan that follows.
Page 12
14. CAPTIVE INSURANCE COMPANY
JAMES MYER
Captive Insurance Company insures various risks of loss.
Pay annual premiums of
$750,000 to cover risk of loss.
Premiums for insurance that
CONSULTING CORP covers real risks are CAPTIVE INSURANCE COMPANY
deductible.
James owns 59% personally
Risk Coverage
Net premium of up to $1.2M is excludable from captive company
income if proper tax election is made.
UNDERWRITING PROFITS
Assuming an effective tax rate of 35% on Consulting Corp profits,
annual premiums of $750,000 will defer income taxes in excess of
$260,000/yr. Underwriting profits of the captive will
ultimately be distributed out to the owner
of the captive.
Page 13
15. CREATE A GRANTOR DEEMED OWNER TRUST
JAMES MYER
James creates a grantor deemed owner trust (GDOT).
The Trust can be drafted to provide asset protection and long term estate tax savings through the use of dynasty trust provisions.
JAMES MYER GDOT
HEIRS
Page 14
16. GIFT TO GRANTOR DEEMED OWNER TRUST
JAMES MYER
James makes two gifts totaling $5,000,000 to his GDOT that are designed to give the trust economic substance and maximize his
available lifetime gifting exemption.
Gift interests in Consulting
Corp worth $4,550,000 and
JAMES MYER interests in Captive Insurance GDOT
Company worth $450,000
Owns Consulting Corp interests worth
$4,550,000 and Captive Company interests
worth $450,000
HEIRS
Note: After 2012, the exemption may be reduced back down to $1M. The gift today locks in the use of your $5M exemption.
Page 15
17. SELL CONSULTING CORP INTERESTS TO GDOT
JAMES MYER
James sells his remaining interests in Consulting Corp to the GDOT for an installment note.
Sell Consulting Corp interests
worth $10,200,000
JAMES MYER GDOT
James owns an installment note after the The GDOT owns Consulting Corp interests
sale Installment note worth worth $10,200,000 after the sale
$10,200,000 that provides
annual payments of $828,674
*Note payments are amortized over 15 years using
Februrary 2012 long term AFR of 2.6%.
** Note payments can be made using annual profit HEIRS
distributions from Consulting Corp or in-kind payments of
Consulting Corp interests. Receive assets in the future according to
terms of the trust
*** As part of the proposed plan, we have assumed an
increase in salary/W-2 income to $2,000,000/yr. for all 6
years prior to retirement.
Page 16
18. PURCHASE LIFE INSURANCE IN THE GDOT
JAMES MYER
The GDOT Trustee purchases life insurance with the GDOT assets.
Premium in the amount of
$250,000 is scheduled to be paid
for all years with the earnings
GDOT LIFE INSURANCE
and capital of the GDOT.
Owns Life Insurance $10,000,000
Policy Benefits:
- Used as wealth replacement, it can allow increased charitable giving that reduces or eliminates
estate taxes but ensures a significant inheritance for your heirs
- Increased inheritance in trust for heirs
- Provides instant liquidity to pay estate taxes
- Over time, annual premiums paid into this vehicle (which is income and estate tax free) will
reduce the taxes from other investment assets subject to income taxes
- Helps provide inheritance equalization for the children not involved in the business
The premium is based on certain assumptions. This is for illustration purposes only. Actual insurance numbers can only be determined by
applying for insurance.
Page 17
19. DETAILED FINANCIAL ANALYSIS
JAMES MYER
INTRODUCTION
The following section of the plan contains all of the financial analysis used to show you where you
stand with your current plan and what is possible with the proposed plan.
All of the numbers are based on information provided by you or gleaned from statements and tax
returns. If numbers do not look correct, please let us know so that we can make the appropriate
changes.
Assumed growth and yield numbers are all listed on the Net Worth contained in these sections.
Page 18
20. DETAILED FINANCIAL ANALYSIS
JAMES MYER
CURRENT PLAN FINANCIALS
In the Current Plan Section you will find a current balance sheet and detailed cash flow and asset
projection analysis.
Page 19
21. GENERAL PLANNING ASSUMPTIONS
JAMES MYER
Planning Assumptions:
- Annual Wages/Salary from Consulting Corp of $1,200,000 through 2017 in the
current plan. Annual Wages/Salary from Consulting Corp is increased to $2,000,000
through 2017 in the proposed plan
- Annual net profit (59%) from Consulting Corp of $2,950,000 in the current plan.
Net profits for Consulting Corp are decreased to $2,124,000 with increased W-2
income for James and Dave in the proposed plan
- Value for Consulting Corp (59%) of $14,750,000
- Annual Captive Premiums (100%) paid to Captive Insurance Company of $750,000
through 2017
- Assumed retirement in 2018
- Consulting Corp value carried on balance sheet with 2% annual interest buy-out
payments received ($295,000) for 10 years
- Salary and flow through profits cease
- Annual Living Expenses after taxes of $500,000 and alimony payments of $100,000
Page 20
22. CURRENT NET WORTH STATEMENT
JAMES MYER
JAMES YIELD GROWTH
CASH AND EQUIVALENTS
Savings Account 90,000 0.0% 0.0%
Total of Cash and Equivalents 90,000 0.0% 0.0%
MARKETABLE SECURITIES - EQUITIES
Securities Account 10,000 1.0% 4.0%
Securities Account 25,000 1.0% 4.0%
Total of Equities 35,000 1.0% 4.0%
Page 21
23. CURRENT NET WORTH STATEMENT (Page 2)
JAMES MYER
YIELD GROWTH
OTHER INVESTMENTS
Captive Insurance (59%) 442,500 0.0% 0.0%
Total of Other Investments 442,500 0.0% 0.0%
CLOSELY HELD BUSINESS
Consulting Corp (S Corp - 59%) 14,750,000 20.0% 0.0%
Total Closely Held Business 14,750,000 20.0% 0.0%
RETIREMENT PLANS/IRAs
Consulting Corp 401(k) 143,790 0.0% 6.0%
Consulting Corp Cash Balance 518,473 0.0% 6.0%
Total Retirement Plans 662,263 0.0% 6.0%
Page 22
24. CURRENT NET WORTH STATEMENT (Page 3)
JAMES MYER
JAMES YIELD GROWTH
INVESTMENT REAL ESTATE
Land - 200 acres 240,000 0.0% 2.0%
Total of Real Estate Holdings 240,000 0.0% 2.0%
RESIDENTIAL REAL ESTATE
123 Main St. 400,000 0.0% 2.0%
Total of Personal Residences 400,000 0.0% 2.0%
PERSONAL PROPERTY
Tractors 26,000 0.0% 0.0%
Autos 98,000 0.0% 0.0%
Personal Property 250,000 0.0% 0.0%
Total of Personal Property 374,000 0.0% 0.0%
TOTAL ASSETS 16,993,763
LIABILITIES
Land - 200 acres 80,000
Total Liabilities 80,000
TOTAL LIABILITIES 80,000
NET WORTH 16,913,763
Page 23
25. SCHEDULE OF LIFE INSURANCE BENEFITS - CURRENT PLAN
JAMES MYER
COMPANY INSURED POLICY # BENEFICIARY PREMIUM CASH VALUE DEATH BENEFIT
Policies owned by James
15 yr. term James # Amanda Jones 5,000 - 700,000
Group James # - - - 100,000
Whole James # Debra Myer - - 70,000
Totals 5,000 - 870,000
Other Policies
15 yr. term James # Consulting Corp 31,000 - 4,000,000
Group Term Age 70 James # Debra Myer - - 350,000
Policy James # Debra Myer - - 70,000
Whole Jessica # James - - 30,000
Whole Matthew # James - - 15,000
Whole Thomas # James - - 15,000
Whole Mike # James - - 30,000
Whole Sam # James - - 15,000
Whole Michelle # James - - 15,000
Totals 31,000 - 4,540,000
Page 24
26. FINANCIAL ANALYSIS - EXISTING PLAN ASSET VALUE PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Asset Values
Cash and cash equivalents 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000
Marketable securities - Equities 35,000 2,177,091 4,221,511 6,349,490 8,564,664 10,870,832 13,271,963 13,447,539 15,922,358
Captive Insurance 1 442,500 865,530 1,305,481 1,763,030 2,238,882 2,733,767 3,248,448 3,378,386 5,625,260
Consulting Corp 14,750,000 14,750,000 14,750,000 14,750,000 14,750,000 14,750,000 14,750,000 14,750,000 14,750,000
Retirement plans/IRAs 662,263 919,307 1,198,465 1,494,373 1,808,036 2,140,518 2,492,949 2,642,526 3,080,753
Investment real estate 240,000 244,004 248,885 253,862 258,939 264,118 269,401 274,789 355,468
Personal residences 400,000 406,674 414,808 423,104 431,566 440,197 449,001 457,981 592,447
Personal property 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000
Total assets in estate 16,993,763 19,826,606 22,603,150 25,497,860 28,516,087 31,663,432 34,945,761 35,415,220 40,790,287
Less estimated liabilities (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000)
Net worth 16,913,763 19,746,606 22,523,150 25,417,860 28,436,087 31,583,432 34,865,761 35,335,220 40,710,287
1
Supporting cash flow financials for Captive Insurance can be found in the Proposed Plan financials.
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in marketable securities.
Page 25
27. TAXABLE INCOME PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Sources of taxable income
Marketable securities - Equities 350 21,771 42,215 63,495 85,647 108,708 132,720 158,624
Consulting Corp 2,950,000 2,950,000 2,950,000 2,950,000 2,950,000 2,950,000 - -
Buyout Payments 1 - - - - - - 295,000 -
Alimony Payments (98,000) (98,000) (98,000) (98,000) (98,000) (98,000) (98,000) (98,000)
Retirement plans/IRAs - - - - - - - 189,259
Client earned income 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 1,200,000 - -
Gross income 4,052,350 4,073,771 4,094,215 4,115,495 4,137,647 4,160,708 329,720 249,883
1
Assumes that James retires in year 7. Dave begins making 2% interest payments for 10 year buyout in 2018.
Page 26
29. CASH FLOW PROJECTIONS - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Sources of income for Lifestyle
Distribution from Marketable Securities - - - - - - 355,302 574,554
Consumable income (taxable) 4,052,350 4,073,771 4,094,215 4,115,495 4,137,647 4,160,708 329,720 249,883
Total income available for lifestyle 4,052,350 4,073,771 4,094,215 4,115,495 4,137,647 4,160,708 685,022 824,436
Uses of Cash
Living expenses 500,000 510,000 520,200 530,604 541,216 552,040 563,081 728,406
Income tax 1,386,575 1,581,187 1,589,244 1,597,631 1,606,363 1,615,454 94,586 62,113
Personally held insurance premiums 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Cash gifts to charity 19,850 20,247 20,652 21,065 21,486 21,916 22,354 28,918
Total uses of cash 1,911,425 2,116,434 2,135,096 2,154,300 2,174,065 2,194,411 685,022 824,436
Surplus 2,140,925 1,957,336 1,959,119 1,961,194 1,963,581 1,966,298 - -
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
If there is a cash flow shortage (spending or gifting capital) then the shortage is treated as a reduction in
marketable securities row on the "Asset Value Projections" 3 pages earlier.
Page 28
31. SUMMARY OF BENEFITS TO FAMILY - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Benefits to Family
Residual estate 12,541,088 14,106,979 9,546,483 10,540,168 11,571,126 12,640,786 13,750,633 13,810,200 15,766,564
Qualified plan assets 662,263 919,307 1,198,465 1,494,373 1,808,036 2,140,518 2,492,949 2,642,526 3,080,753
Total assets to heirs 13,203,351 15,026,286 10,744,948 12,034,542 13,379,162 14,781,304 16,243,582 16,452,726 18,847,318
Page 30
32. DETAILS OF JAMES'S QUALIFIED PLAN - EXISTING PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
James's Qualified Plans
James's Age 64 65 66 67 68 69 70 83
Minimum distribution factor 33.0 32.0 31.1 30.2 29.2 28.3 27.4 16.3
Plan contributions 224,000 224,000 224,000 224,000 224,000 224,000 - -
Plan balance 662,263 919,307 1,198,465 1,494,373 1,808,036 2,140,518 2,492,949 2,642,526 3,080,753
Minimum distribution - - - - - - - 189,259
Preferred distribution - - - - - - - -
Actual distribution - - - - - - - 189,259
Page 31
33. DETAILED FINANCIAL ANALYSIS
JAMES MYER
PROPOSED PLAN FINANCIALS
In the Proposed Plan Section you will find a balance sheet which reflects the repositioning of assets
as set out in the step by step roadmap in the proceeding section. You will also find detailed cash
flow and asset projection information on each of the proposed planning strategies.
Page 32
34. NET WORTH STATEMENT AFTER PLAN IMPLEMENTATION
JAMES MYER
JAMES YIELD GROWTH
CASH AND EQUIVALENTS
Savings Account 90,000 0.0% 0.0%
Total of Cash and Equivalents 90,000 0.0% 0.0%
MARKETABLE SECURITIES - EQUITIES
Securities Account 10,000 1.0% 4.0%
Securities Account 25,000 1.0% 4.0%
Total of Equities 35,000 1.0% 4.0%
RETIREMENT PLANS/IRAs
Consulting Corp 401(k) 143,790 0.0% 6.0%
Consulting Corp Cash Balance 518,473 0.0% 6.0%
Total Retirement Plans 662,263 0.0% 6.0%
Page 33
35. REVISED NET WORTH STATEMENT (Page 2)
JAMES MYER
JAMES YIELD GROWTH
INVESTMENT REAL ESTATE
Land - 200 acres 240,000 0.0% 2.0%
Total of Real Estate Holdings 240,000 0.0% 2.0%
RESIDENTIAL REAL ESTATE
123 Main St. 400,000 0.0% 2.0%
Total of Personal Residences 400,000 0.0% 2.0%
PERSONAL PROPERTY
Tractors 26,000 0.0% 0.0%
Autos 98,000 0.0% 0.0%
Personal Property 250,000 0.0% 0.0%
Total of Personal Property 374,000 0.0% 0.0%
OTHER STRATEGY ASSETS
GDOT Note 10,200,000 2.6%
Total of Other Strategy Assets 10,200,000 2.6%
TOTAL ASSETS 12,001,263
LIABILITIES
Land - 200 acres 80,000
Total Liabilities 80,000
TOTAL LIABILITIES 80,000
NET WORTH 11,921,263
Page 34
36. FINANCIAL ANALYSIS - PROPOSED PLAN ASSET VALUE PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Asset Values
Cash and cash equivalents 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000 90,000
Marketable securities - Equities 35,000 864,865 1,533,700 2,218,416 2,919,316 3,636,700 4,370,868 4,641,703 5,753,733
Retirement plans/IRAs 662,263 919,307 1,198,465 1,494,373 1,808,036 2,140,518 2,492,949 2,642,526 3,080,753
Investment real estate 240,000 244,004 248,885 253,862 258,939 264,118 269,401 274,789 355,468
Personal residences 400,000 406,674 414,808 423,104 431,566 440,197 449,001 457,981 592,447
Personal property 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000 374,000
Note from children's GDOT 10,200,000 9,634,486 9,054,382 8,459,311 7,848,888 7,222,716 6,580,388 5,921,488 -
Total assets in estate 12,001,263 12,533,336 12,914,239 13,313,066 13,730,744 14,168,249 14,626,606 14,402,487 10,246,402
Less estimated liabilities (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000) (80,000)
Net worth 11,921,263 12,453,336 12,834,239 13,233,066 13,650,744 14,088,249 14,546,606 14,322,487 10,166,402
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row by default.
If there is a cash flow shortage (because of spending or gifting capital) then the shortage is treated as a reduction in marketable securities.
Page 35
37. TAXABLE INCOME PROJECTIONS - PROPOSED PLAN
2,124,000
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Marketable securities - Equities 350 8,649 15,337 22,184 29,193 36,367 43,709 61,532
Marketable securities- GDOT - 10,453 21,429 32,954 45,055 57,761 71,102 21,679
Alimony Payments (98,000) (98,000) (98,000) (98,000) (98,000) (98,000) (98,000) (98,000)
Retirement plans/IRAs - - - - - - - 189,259
Other taxable earnings-GDOT 2,124,000 2,124,000 2,124,000 2,124,000 2,124,000 2,124,000 295,000 -
1
Client earned income 1,200,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 - -
Gross income 4,026,350 4,045,102 4,062,766 4,081,138 4,100,248 4,120,128 311,811 174,470
1
Increased W-2 income for all years prior to retirement. This will decrease the available profit distributions from Consulting Corp.
Page 36
39. CASH FLOW PROJECTIONS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Sources of Income for Lifestyle
Consumable income (taxable) 1,902,350 1,910,649 1,917,337 1,924,184 1,931,193 1,938,367 (54,291) 152,791
Distribution from Marketable Securities - - - - - - - 645,636
Payment from GDOT 828,674 828,674 828,674 828,674 828,674 828,674 828,674 -
Total income available for lifestyle 2,731,024 2,739,322 2,746,011 2,752,858 2,759,867 2,767,041 774,382 798,427
Uses of Cash
Living expenses 500,000 510,000 520,200 530,604 541,216 552,040 563,081 728,406
Income tax 1,377,475 1,569,835 1,576,791 1,584,026 1,591,553 1,599,384 87,946 36,104
Personally held insurance premiums 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Cash gifts to charity 19,850 20,247 20,652 21,065 21,486 21,916 22,354 28,918
Total uses of cash 1,902,325 2,105,082 2,122,643 2,140,695 2,159,256 2,178,341 678,381 798,427
Surplus 828,699 634,241 623,368 612,163 600,611 588,700 96,001 -
In the event that there is a cash flow surplus, the surplus is added to the marketable securities row on the "Asset Value Projections" 3 pages earlier.
If there is a cash flow shortage (spending or gifting capital) then the shortage is treated as a reduction in
marketable securities row on the "Asset Value Projections" 3 pages earlier.
Page 38
41. SUMMARY OF BENEFITS TO FAMILY - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Benefits to Family
Residual estate 7,578,415 7,663,760 3,098,073 4,406,843 4,279,256 4,141,682 3,993,449 3,744,027 1,519,662
Qualified plan assets 662,263 919,307 1,198,465 1,494,373 1,808,036 2,140,518 2,492,949 2,642,526 3,080,753
Value of GDOT 4,550,000 6,160,840 7,838,537 9,586,080 11,406,598 13,303,371 15,279,829 15,510,567 16,776,270
Life insurance proceeds GDOT 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
Captive Insurance Accumulation 442,500 865,530 1,305,481 1,763,030 2,238,882 2,733,767 3,248,448 3,378,386 5,625,260
Total assets to heirs 23,233,178 25,609,437 23,440,557 27,250,326 29,732,772 32,319,338 35,014,675 35,275,505 37,001,946
Page 40
42. TOTAL CAPTIVE INSURANCE COMPANY DETAILS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
Captive Balance Sheet (100%)
Assets
Initial Capitalization (non-deductible) 100,000 104,000 108,160 112,486 116,986 121,665 126,532 131,593 219,112
Captive Insurance Company 650,000 1,363,000 2,104,520 2,875,701 3,677,729 4,511,838 5,379,312 5,594,484 9,315,227
Total (Marketable Securities )* 750,000 1,467,000 2,212,680 2,988,187 3,794,715 4,633,503 5,505,843 5,726,077 9,534,339
These are gross numbers subject to potential claims against the captive insurance company.
* Assumes 4.0% annual growth on profits and reserves.
Assets in Captive $ 750,000 $ 1,467,000 $ 2,212,680 $ 2,988,187 $ 3,794,715 $ 4,633,503 $ 5,505,843 $ 5,726,077 $ 9,534,339
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
James's Captive Trust Balance Sheet (59%)
Assets
Initial Capitalization (non-deductible) 59,000 61,360 63,814 66,367 69,022 71,783 74,654 77,640 129,276
Captive Value 383,500 804,170 1,241,667 1,696,663 2,169,860 2,661,984 3,173,794 3,300,746 5,495,984
Total (Marketable Securities )* 442,500 865,530 1,305,481 1,763,030 2,238,882 2,733,767 3,248,448 3,378,386 5,625,260
These are gross numbers subject to potential claims against the captive insurance company.
* Assumes 4.0% annual growth on profits and reserves.
Cash Flow
Captive Premium Income 405,330 405,330 405,330 405,330 405,330 405,330 - -
Net Income 405,330 405,330 405,330 405,330 405,330 405,330 - -
James's Assets in Captive $ 442,500 $ 865,530 $ 1,305,481 $ 1,763,030 $ 2,238,882 $ 2,733,767 $ 3,248,448 $ 3,378,386 $ 5,625,260
Page 41
43. TOTAL CAPTIVE INSURANCE COMPANY DETAILS - PROPOSED PLAN
(Continued)
CIC Cash Flow Current 2012 2013 2014 2015 2016 2017 2018 2031
Income
Premium Income (6 yrs) 750,000 750,000 750,000 750,000 750,000 750,000 - -
Total Income 750,000 750,000 750,000 750,000 750,000 750,000 - -
Initial Captive Capitalization 100,000 - - - - - - -
Expenses
Captive Management Fees (63,000) (63,000) (63,000) (63,000) (63,000) (63,000) - -
Net Income (Cash Flow) 687,000 687,000 687,000 687,000 687,000 687,000 - -
Taxable Income Current 2012 2013 2014 2015 2016 2017 2018 2031
Initial Captive Set up Fee (Amortized deduction) (15,000) (15,000) (15,000) (15,000) (15,000) - - -
831(b) Premium Exclusion (750,000) (750,000) (750,000) (750,000) (750,000) (750,000) - -
Taxable Income (765,000) (765,000) (765,000) (765,000) (765,000) (750,000) - -
Page 42
44. GRANTOR DEEMED OWNER TRUST DETAILS - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
GDOT Balance Sheet
Seed Gift - Consulting Corp Interests 4,550,000 4,550,000 4,550,000 4,550,000 4,550,000 4,550,000 4,550,000 4,550,000 4,550,000
Consulting Corp Interests - Sold 10,200,000 10,200,000 10,200,000 10,200,000 10,200,000 10,200,000 10,200,000 10,200,000 10,200,000
Reinvested excess cash flow - 1,045,326 2,142,919 3,295,391 4,505,486 5,776,087 7,110,217 6,682,055 2,026,270
Note payable to James (10,200,000) (9,634,486) (9,054,382) (8,459,311) (7,848,888) (7,222,716) (6,580,388) (5,921,488) -
Net equity 4,550,000 6,160,840 7,838,537 9,586,080 11,406,598 13,303,371 15,279,829 15,510,567 16,776,270
GDOT Income Tax Estimation
Consulting Corp 1 2,124,000 2,124,000 2,124,000 2,124,000 2,124,000 2,124,000 295,000 -
Earnings from reinvestment acct./Seed Gift - 10,453 21,429 32,954 45,055 57,761 71,102 21,679
Total earnings 2,124,000 2,134,453 2,145,429 2,156,954 2,169,055 2,181,761 366,102 21,679
GDOT Cash Flow
Capital Distribution from excess cash - - - - - - 712,572 228,321
Consulting Corp 1 2,124,000 2,124,000 2,124,000 2,124,000 2,124,000 2,124,000 295,000 -
Cash flow from reinvestment acct./SeedGift - 10,453 21,429 32,954 45,055 57,761 71,102 21,679
Installment Note payments to James (828,674) (828,674) (828,674) (828,674) (828,674) (828,674) (828,674) -
Insurance Premium (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000) (250,000)
Cash flow to reinvest 1,045,326 1,055,780 1,066,755 1,078,280 1,090,381 1,103,087 - -
GDOT Insurance
Net death benefit 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000 10,000,000
All Pay Premium 250,000 250,000 250,000 250,000 250,000 250,000 250,000 250,000
Amortization - Installment Note**
Balance Due 10,200,000 9,634,486 9,054,382 8,459,311 7,848,888 7,222,716 6,580,388 5,921,488 -
Principal 565,514 580,104 595,071 610,423 626,172 642,328 658,900 -
Interest 263,160 248,570 233,603 218,250 202,501 186,346 169,774 -
Total payment 828,674 828,674 828,674 828,674 828,674 828,674 828,674 -
** Note is amortized over 15 years
1
Increased W-2 income for all years prior to retirement. This will decrease the available profit distributions from Consulting Corp.
Page 43
45. DETAILS OF JAMES'S QUALIFIED PLAN - PROPOSED PLAN
YEAR Current 2012 2013 2014 2015 2016 2017 2018 2031
James's Qualified Plans
James's age 64 65 66 67 68 69 70 83
Minimum distribution factor 33.0 32.0 31.1 30.2 29.2 28.3 27.4 16.3
Securities in plans 662,263 695,307 974,465 1,270,373 1,584,036 1,916,518 2,268,949 2,642,526 3,080,753
Plan contributions 224,000 224,000 224,000 224,000 224,000 224,000 -
Plan balance during life 662,263 919,307 1,198,465 1,494,373 1,808,036 2,140,518 2,492,949 2,642,526 3,080,753
Plan balance at death of survivor 662,263 919,307 1,198,465 1,494,373 1,808,036 2,140,518 2,492,949 2,642,526 3,080,753
Minimum distribution - - - - - - - 189,259
Actual distribution - - - - - - - 189,259
Page 44
46. PLAN ASSUMPTIONS
JAMES MYER
The plan is based on numerous assumptions. Important among these are the yield and growth assumptions
contained on the balance sheet in the Financial Analysis section. Other important assumptions are contained on
this Plan Assumptions page.
Tax Rate Assumptions
State Income Tax Rate No state income tax
State Inheritance - Estate Tax No state estate tax
Tax on IRD
Unless a qualified plan is given to charity, we assume the beneficiary designations are changed to provide for a
stretch out distribution.
7520 Rates
Highest rate 1.5% December, 2011
Current rate 1.3% February, 2012
Lowest rate 1.3% February, 2012
Long Term AFR Rate 2.6% February, 2012
Salary and Other Earned Income Assumptions
Annual increase in James's earned income 0%
Number of years James's income is expected to continue 6
Lifestyle Need Assumptions
Net annual outlay for James's lifestyle needs, not including gifts or taxes $500,000
Annual cost of living increase used in the plan 2%
Settlement and Administrative Expenses
Fixed estate settlement costs $50,000
Variable estate settlement costs 1.00% (of assets)
Page 45
47. FAMILY INFORMATION
JAMES MYER
CLIENT
James Myer Date of Birth February 2, 1948
123 Main St.
CHILDREN
CHILD'S NAME SPOUSE'S NAME
Jessica Myer
Matthew Myer
Thomas Myer
GRANDCHILDREN
NAME
Mike Myer
Sam Myer
Michelle Myer
Jenny Myer
Page 46
48. DISCLAIMER AND DISCLOSURE
JAMES MYER
InKnowVision, LLC does not give accounting or investment advice to its clients. The effectiveness of any of the strategies described will
depend on your individual situation and on a number of complex factors.
You should consult with your other advisors on the accounting and investment implications of the proposed strategies before any strategy is
implemented.
Any discussion in this presentation relating to tax, accounting, investments, regulatory, or legal matters is based on our understanding as of the
date of this presentation. Rules in these areas are constantly changing and are open to varying interpretations.
Assumption Issues The plan involves numerous assumptions. While we believe that these assumptions are reasonable, it is important to
understand that it is a virtual certainty that the actual results will differ from those illustrated. Returns on investment and performance of
financial products such as insurance can cause the results to vary. Changes in tax, trust or property laws can cause plan results to vary. Plan
implementation that differs from that described in the plan will cause the results to vary. Provision of state law may cause the plan results to
vary.
Tax Opinions The IRS has recently issued new rules for tax practitioners regarding covered opinions, reliance opinions and marketed opinions.
While this is an arcane area, suffice it to say that these opinions are often obtained by taxpayers for purposes of avoiding penalties. These
opinions are obtained at substantial cost and after substantial legal analysis. If you believe that such an opinion would be helpful to you prior to
entering into any of the transactions outlined in this plan, you should feel free do so.
Be advised that nothing in this analysis should be construed by you, your advisors or any one else as a covered opinion, reliance opinion,
marketed opinion or any other type of opinion regarding any of the transactions or outcomes outlined in this plan.
Page 47