Private Retirement Plans are not as well-known as IRAs and more traditional tax oriented retirement plans; this leaves Californians with few places to turn for resources and information regarding their personal PRP. Attorneys, fee-based advisors, and administrators are all excellent resources; however each provides unique benefits and costs.
Attorneys are a great source of information regarding the initial set up and construction of your PRP. Depending on the locality however, attorneys may charge a range of fees depending on the level of planning intensity and/or amount of assets to be funded and protected.
Fee-based advisors are also a great resource as they may already be managing your investment portfolio and can help with an integrated approach that includes assets held in a PRP. However, often financial advisors have limits to business management needs, so an advisor should be interviewed to ensure their skill set matches the needs of your PRP.
Unfortunately, because a PRP combines the needed skills of a CFO for private business and equity investment knowledge, and also must be an expert in Trust administration, a PRP administrator is the rarest of breeds. Another limitation is that the administrator must be independent 3rd party, so other professionals, including drafting attorneys and/or a CPA representing the business or investment interest conflict with that service. Consequently, one should ensure they ask their current trusted advisors for a reference to an expert administrator who can ensure proper documentation, utmost service and support, and critical reporting to shore-up ultimate defense.
The bottom line as a successful business owner, executive, or professional is that you can build wealth the way you want. You will can still be yet be protected from unwanted creditors while ensuring your maximizing your tax situation and overall wealth preservation plan. By using a PRP you maintain full control of your money and assets and their allocation, any threats to your wealth are mitigated to the fullest extent of the law, and your assets are protected with the utmost security.
By standing up and claiming your legal exemption rights as a Californian, you can sleep soundly knowing that you’re using a powerful, flexible, and cost-effective solution to help you secure a comfortable retirement. At TRUST-CFO® we not only specialize in handling PRP plans specifically, but also provide you with all educational and informational materials you need to learn about your rights as a Californian to protect your financial future. We provide a comprehensive suite of services to help you reduce your risk associated with outdated or improperly administrated Trusts and Estate Plans. You can rely on us to provide ongoing tracking and reporting to ensure you are fully protected.