If you’re a California resident looking into your options for retirement, I’m sure you’re familiar with Individual Retirement Accounts (IRA) and similar tax-oriented retirement plans.With ever-increasing lawsuits and more pressures and aggressive tactics that try to “hide” or defraud creditors, there are few legitimate planning strategies that offer Californians true asset protection. With the countless threats to your private assets and financial future, it begs the question…is your money protected? Despite all the threats Californians face when saving for retirement, you have and additional option that is not as well known; a Private Retirement Plan.
A Private Retirement Plan/trust, or PRT for short, is a retirement plan that fully exempts all trust assets from any creditor attachment as long as it’s designated for your future use in retirement. In 1970 California instituted its’ state exemption law that assets owned in a private retirement trust are fully exempt under statute. PRTs are specifically designed to enhance, ensure, and enforce your legal “exemption” right to protect both employer and private funds and assets from lawsuits and creditor attacks.
The most popular and most advertised retirement plans aretax-oriented plans like qualified retirement plans or IRAs that seek tax deductions for plan contributions. Private Retirement Plans instead prioritize and protect private assets that already have inherent tax benefits.Tax oriented plans have added restrictions on what can be funded, in addition to funding amounts.
How does it work?Instead of seeking sources of income or assets that can be used for tax deductions like IRAs, you can contribute funds to your PRTSM as they are earned with little to no restrictions on the type or amount. Since funds and assets are only allocated to a PRT after they have been taxed, contributions are not deductible; this provides a tremendous amount of freedom regarding what types of assets can be contributed to your plan. Any private or appreciating asset that you wish to protect and grow safely with the utmost security can be put into a Private Retirement Plan without limits.
If you have the right guide, you can make your assets run more efficiently to accelerate growth, creating greater future values with less risk resulting in more net benefits for you and your family; for a better and more comfortable lifestyle… Isn’t that what were all working for anyways, A better future lifestyle?
This series is for any California citizen that is interested in the most effective way to protect their retirement savings. If you can’t save up enough money for a traditional retirement plan, or if you would like to maintain control of your assets and save for retirement on your own terms, a PRTSM may be right for you. Trust-CFO is here to bring you a method of not only saving your money for retirement with mitigated risk, but to also educate you about intricacies of your rights as a Californian and how to use those rights to protect your financial future.
Be sure to read part two in our series- Funding your future: Difference between Private Retirement Plans and Tax Oriented Retirement Plans Part 2