America's Top Planner Highlights the Private Retirement Plan

America’s Top Planner Highlights the Private Retirement Plan

America's Top Planner

The quest to find America’s best estate, retirement, business, wealth-transfer, or tax planners

America’s Top Planner has featured the Private Retirement Plan in its most recent publication.

America's Top Planner

The quest to find America’s best estate, retirement, business, wealth-transfer, or tax planners

This is an exciting news and a great article that helps from America’s Top Planner to help explain how a PRP works.  We are excited to share it as we continue to educate Californians on the strategies to secure their assets for retirement. A properly structured PRP is an amazing tool when properly implemented and administered.

Here is the Article…. Enjoy

Using the PRP to Help Californians

The Concern

Asset exposure is a problem for high net worth investors everywhere. In California, however, the issue is particularly acute. Residents of the state must contend with extortionate behavior by creditors and overbearing regulators. It’s no exaggeration to say that asset exposure concerns plague the market as a whole.

Additionally, California residents face the highest tax burden in the United States, so they keep less of their money. Should a person lose assets in a lawsuit or file bankruptcy, these conditions make it far more difficult to recoup that money, creating serious wealth preservation concerns.

The Solution

Ray Olmo, CEP®, RFC®, managing director of TRUST-CFO℠ and a risk management expert, encourages those with concerns about asset exposure (and those who professionally advise them) to explore the use of a Private Retirement Plan. This solution, which depends on California state statute and is therefore not applicable in other states, provides high net worth individuals with a novel way to protect the wealth they’ve built over a lifetime.

Many Californians are unaware of the rights they possess under state law, including the right to place private assets in a private retirement plan. This solution is a comprehensive and integrated plan that takes advantage of the rights California residents possess under state law, in order to help preserve wealth as effectively as possible.

How It Works

The solution works by taking any private or appreciating asset and allocating them for retirement, rather than personal use today. This may include private business stock, real estate, private equity and life insurance plans.

Once a client justifies and proves these assets are for retirement, they may then be re-characterized and placed into a private retirement plan to benefit the client in the future. These assets are now totally exempt under California state statute — one of the strongest such laws in the country.

Unlike many trusts where control of the assets must be released, this solution allows clients to act as the beneficiary of their own trust, allowing the assets to one day return to client control. After this occurs, assuming the assets are properly administrated, these distributions are now also fully asset protected from unwanted creditors and attachments.

It’s important to note that this solution will only work with “official” plans as recognized under California law. In order to meet this standard, a private retirement plan must be set up with a trust to represent and hold assets on behalf of the participant. A third party administrator is also required to ensure reporting independence, and to make sure the infrastructure is supportable and can be defended against any attack. Benefits and distributions must also be tracked on behalf of the plan.


This solution allows clients to take assets that would otherwise be ineligible for retirement (assets that are, in fact, prohibited by many qualified plans and IRAs) and shelter them while having them accumulate securely and safely. While the Private Retirement Plan is tax neutral in that it doesn’t seek deductions, it does support the inherently strong tax benefits of the assets within the trust. One example: Private business stock can not only draw expense benefits and capital gains treatment on stock, but may also draw additional tax credits that would otherwise be forfeited. These tax credits are dollar for dollar benefits, rather than fractional deductible dollar benefits.

Tax free benefits on the back end may also be maintained via loans. There are no limits or regulations on private plans. As mentioned, there are no asset restrictions on private retirement plans, which is attractive for clients who wish to build their own retirement plan using private assets. These clients can design a plan, maintain all inherent tax benefits associated with its assets, and enjoy full asset protection during both the accumulation and distribution phases — assuming administration is properly in place.


Before attempting to implement this solution it’s important to perform due diligence. While advisors often pay lip service to the power of the California state statute that enables this solution, many lack the sophisticated understanding needed to implement it effectively.

Being aware of the law isn’t enough — It’s critically important to not only be able to explain how to start and implement a private retirement plan, but also safely and securely maintain it. The goal is to make the plan as strong as possible, providing the ultimate defense if and when it is tested.

It’s also important for potential clients and advisors to educate themselves about the law and the solution. CPAs should be aware that this is not simply another retirement plan or IRA. Without understanding the ins and outs of exemption law, many CPAs may fall into this trap.

Resources and Joint Work Opportunities

Ray Olmo, a risk management expert and leading authority on the Private Retirement Plan, is interested in partnering with anyone who consults on a business. Olmo’s firm works with CPAs, attorneys, business consultants, mergers and acquisitions firms, real estate professionals and other advisors.

Such advisors are in the position of educating their clients on their rights, and may theoretically be at risk if they fail to do so. Comprehensive education regarding asset protection solutions can help mitigate the risk of malpractice or omission issues arising as a result of limited information. On the positive side, this type of education tends to be a major market differentiator for clients and drives a variety of advanced planning opportunities to reward vested advisors.

A huge thank you to the Team at America’s Top PLanner and their entire team.  A great group to work with.

You can read the article at America’s Top Planner just click the link.

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