A Private Retirement Plan provides many economic benefits over traditional methods due to the nature of how it is funded, taxed, and protected. Whether you’re an extremely successful executive with $3 million in assets to protect, or a small business owner saving only a few hundred thousand dollars for in retirement; A PRTsm allows a business owner, executive, or professional the opportunity to exempt and protect a large portion if not most of their private assets.
PRTsm provide you with full control of your assets and your financial future in retirement. In some cases, with the right structure and administration. A client can be fully exempt from creditor or bankruptcy claims; exemption under statute is the highest level of protection your retirement savings can have against the greedy claws of creditors and lawsuits that could threaten your estate.
Unlike all other traditional retirement programs, PRTSM asset protection benefits extend beyond Plan assets to all future distributions and death benefits, ultimately ensuring assets are protected against creditor seizure until enjoyed. But what are the costs of a plan that appears to have so many economic and security benefits?
If properly constructed and administered, A PRT gives you the freedom to build your wealth the way you want without having to liquidate, move, transfer, or gift away assets and lose control of critical cash flow. Since PRTsm are tax-neutral, it allows participants to retain and enhance ongoing tax benefits of active assets, including harvesting business tax credits that eliminate tax, not just defer them.
Private Retirement Plans don’t require any additional funding, selling, or purchasing of anything; it is simply an administrative function. Proper administration is done with complete transparency, allowing you the freedom to enjoy the liquidity of your assets and maintain cash flow whilst paying a transparent flat-fee rate that is quantified on basis-points compared to the value of the assets held in trust.
A good PRTSM plan should generate a proposal where the cost is lower than any other planning cost associated with your retirement and overall financial plan. Private Retirement Plans not only give you an unmatched level of protection and value through exemption, but also the peace of mind to build your financial future transparently and maintain full control of your assets.
Make sure and read our last PRT 101 article What resources and information is available for Private Retirement Plans? Part 5. Get informed about protecting your future retirement.