Bill Faiferlick, Financial Strategist

Bill Faiferlick, Financial Strategist & Author, has specialized in developing unique financial strategies for business owners, professionals and affluent individuals in the US and abroad for more than twenty-three years helping to ensure their sustained success.

This Economy Isn't Going Away Soon: Strategies for Prosperity

In a volatile and unpredictable economy, we need to learn more effective ways to maintain profitability. Strategies to ensure prosperity need to be incorporated to increase profitability and personal wealth.

There are unique opportunities for business owners and professionals that will:

  • dramatically accelerate the accumulation of investment capital;
  • provide unparalleled protection from life's unexpected events;
  • and immediately increase profitability by appropriately leveraging the tax system beyond any recommendations you've been exposed to to-date.

Strategies of this nature are seldom promoted through mainstream channels since a very different skill set and vision is necessary to develop and implement beneficial strategies which fall outside the typical product sales mentality.

Inquire which opportunities are available for you. After all "It's Your Money."

 

Is Your Pension Underwater?

As a steward and fiduciary of your company's pension plan, are you willing to use corporate profits to satisfy your underfunding liability?

Pension Rx
The prescription for securing pensions and your future

Times have changed and we all know that doing things in the same way usually produces the same results. We also know that volatile markets produce unpredictable results and that investment losses in pension plans result in underfunding and other liabilities.

PensionRx is an ERISA based financial solution addressing today's uncertain financial times.

All organizations have a fiduciary duty to every participant to investigate sound alternatives. If the market performs poorly, your organization is obligated to step in and provide the missing pension funds. That takes money away from other initiatives or projects.

  • PensionRx investments have a stop loss feature that virtually eliminates market losses while allowing for market appreciation in positive years. This serves as a lock-in reset point allowing the plan to retain gains and eliminate losses.
  • Investment gains above the guarantees are credited against underfunding obligations. This ensures the plan not the company funds past deficiencies. This is one of two investment options integrated into PensionRx.
  • Risk is shifted from the sponsoring organization to the investment management firm. Firms are AA and AAA rated.
  • By eliminating volatility, we've eliminated the need to take greater risk in an effort to make up for past losses. This leads to stable more predictable returns with less risk.
  • We generally use reduced or no fee investments. Eliminating unnecessary fees or costs is essential to higher total returns since the objective is to accelerate plan values.

We guarantee we'll be able to help address the risk associated with your pension plan and how to secure and guarantee your plan.

If we continue to act as we've always have how can we expect different results?

There's no obligation to inquire.

 


The Dollar Only Stretches So Far
You Can Accumulate $2 Million or More in
Five Years or Less AND It Is Easier Than You Think!

If you are in business, few owners or professionals will deny it's getting harder to make a buck, and even harder to keep.

Reassert control of your financial destiny by having a financial say about how much you pay in federal taxes.

As the economy continues its lackluster performance and local and state governments along with the federal government report higher and higher deficits and debt loads, they'll continue to raise taxes.

If you want to increase your investment capital and acquire greater wealth at a time when it's increasingly more difficult to maintain prosperity, then you have to look at and do something about one of the worst culprits that strip away wealth - it's the taxes you pay.

Imagine cutting your tax bill in half!

Imagine paying Uncle Sam half of what you pay now and deposit the savings into your investment account. You can leverage the tax system using prudent financial strategies beyond anything your CPA has been able to suggest to date. Owner and Professional Pension Plans take you to the next level.

In 23 years, I've never had a client complain they've had too much money, but they've certainly complained when they've had too little!

If You Believe Your CPA Recommends the Best Strategies,
You'll Be Surprised; They Could Be Costing You Millions

What's surprising is that the vast majority of CPAs are uninformed about the breadth of financial strategies available to adequately address certain challenging issues business owners and professionals routinely face.

If after your CPAs bets efforts you're still paying at least $80,000 or more in taxes then it's time to step to the next level.

Owner and Professional Pension Plans ratchet up individual deductible contributions as high as $300,000 annually.

These increased deductions immediately reduce current taxes obligations by converting tax obligations into a new investment capital using ERISA sponsored plans.

The choice is straight forward.

Learn what your CPA isn't telling you that's costing you real money.

 

 

Divorce Insurance: Preparing for Life's Unexpected Realities

Being unprepared, in most instances, results in devastating consequences. Divorce Insurance: Protecting Your Assets and Privacy from Life's Unexpected Events is Bill Faiferlick's forthcoming book which unveils timely information for all of us given the frequency with which divorces, business dissolutions and unexpected death and disability occur.

Anticipating unexpected life events is not only prudent; it's an absolute necessity today.

We own life insurance to protect our loved ones; we buy car insurance, medical insurance, and fire insurance.

Yet the majority of business owners and professionals fail to take necessary precautions to ensure financial stability in the event of a professional dissolution, death of a partner (when you discover you're in business with the deceased partner's attorney), living through your partner's or your unexpected divorce, separating communial assets with blended families, or ensuring your philanthropic intentions actually materialize.

These and other situations occur with alarming frequency and in each instance the lack of adequate strategic planning (including opportunities internationally) create chaos and can threaten the viability of the business and your own personal financial stability and wealth.

More than a few affluent individuals have suffered devastating financial reversals, sometimes irreversible setbacks because adequate planning wasn't a priority early on instead of after the situation unraveled. Life today requires new relevant secure options. After all "It's Your Money."




Frequently Asked Questions:

Q.

Why are you so focused on the cost of tax liabilities on business profitability?

A.

Payment of unnecessary taxes strips capital from businesses and reduces profitability. Business owners have been given an incredible wealth building tool by Congress that can dramatically alter profitability and enhance personal wealth. I love the quote from Judge Learned Hand that we are not obligated to pay more in taxes than necessary; however, most business owners and professionals are.
 

Q.

I've read your book It's Your Money: Your CPA May Be Costing You Millions. Weren't you a little hard on CPAs?

A.

The short answer is no.

The accounting industry has been promoting itself as the professionals most suited to deal with a wide range of financial issues and tax considerations for business owners and professionals.

However, there are many areas which are well outside their scope of expertise and in my experience too many fail to recues themselves when they're in less than familiar territory. I provided very clear balanced evidence in my book "It's Your Money, Your CPA May Be Costing You Millions" to support my assertions. More details are available in Chapter 3.

I have close friends and colleagues who are CPAs and they tend to agree with me. CPAs who put their client's best interest's first will routinely disclose when they are broaching less familiar territory. CPAs generally will not recuse themselves or admit their limited knowledge and would rather prematurely dismiss an opportunity rather than openly admit to their professional limitations.
 

Q.

One of your booklets states you need $5 million to retire, isn't this an exorbitant amount?

A.

In my opinion, the media isn't accurately conveying this information to the public nor are they correcting some long held beliefs when it comes to retirement and savings.

Let's look at some numbers; if you expect to have an income of $200,000 in fully taxable income, multiply this amount times ten years and you'll need $2 million. If you multiply this by 20 years, it jumps to $4 million. If you add a small inflationary percentage, you're at $5 million.

We're not done yet, now add medical costs. Using the federal government's published long-term costs for Medicare which only provides for one half of the coverage you'll need for out-of-pocket expenses, co-payments etc. over twenty years and there's another $700,000 to $1 million you'll need for medical premium costs. If you add some unexpected health issue and some out-of-pocket expenses into the calculation, then medical coverage costs skyrocket.
 

Q.

My CPA doesn't believe there are any advantages in deferring taxes since my tax rate will be just as high or higher in retirement.

A.

This is the type of misinformation I'm striving to correct.

First, you must know how much money you'll need at the onset of retirement.

For example, anyone striving for a taxable annual income of $200,000, your capital account will have to already have at least $5 million at the onset of retirement providing you expect to live 25 years more.

This does not include having capital to pay for long term medical coverage cost which for a single person is another million dollars. If these are unbelievable number, you'll want to read more.

 

Q.

You stated you can more efficiently reduce tax liabilities than using Family Limited Partnerships to shift income to family members can you explain?

A.

I discuss this in more detail in my revised Owner and Professional Plans e-booklet.

Basically, the Family Limited Partnership is a wonderful tool to transfer at reduced costs family businesses and certain assets to other family members.

This is an extremely efficient acceptable method for the transfer of property, however, when the intent is to reduce personal income tax liabilities by shifting income to other family members who are in lower tax brackets, this type of income shifting does have severe limitations especially since the kiddie income tax rules have been extended to a dependent up to age 19 and a child in school or college up to age 24.

Since family members who fall under the kiddie tax are taxed at the rate of their parents, the kiddie tax strategy nullifies any potential tax benefit in this type of income shifting strategy.

To reduce tax liabilities, CPAs will have the parents (the general partners) gift income to other family members since they are generally in lower tax brackets. Family members may not actually be in receipt of the money. They'll just incur a tax obligation which the parents pay. In this way, the parents have in affect lowered their tax obligation.

If the parents were to install an Integrated Hybrid Pension Plan within the company, each participant would immediately be able to claim up to $300,000 annually for a total of $600,000 depending on facts and circumstances.

 

Q.

How can business owners and professionals protect their assets?

A.

Protecting assets has become perhaps the single most important action one needs to consider since the alternative financial disaster is not something to aspire to.

The very words asset protection conjures up for many time consuming laborious work but it doesn't necessarily have to be so.

Asset protection must include reviewing your company structure to determine whether this single entity is capable of shifting risk away from or is capable of insulating the hard assets in the event of a suit or unwarranted litigation. Where the assets are held and invested is another serious consideration and the underlying structures and agreements which provide immediate or restrictive access to those assets are all influential factors and this type of advanced planning can often be the deciding factor whether you prevail or face financial disaster.

Interjecting these and other changes on the eve of litigation or a divorce seldom works in your favor since it will appear to the courts that you are being less than forthcoming  by attempting to retain a disproportional share of your estate.

 

Q.

Under the business and professional section you discuss Integrated pension plans, why are these so different from 401(k)s and profit sharing plans?

A.

There is a distinction between plans that are first intended to benefit employees like 401(k) profit sharing arrangements and strategies which address the issues business owners and professionals routinely face - higher levels of taxation and few alternatives which provide adequate tax relief.

Integrated pension plans provide customized solutions with unique features and benefits including tax deductible ranging from $70,000 to $300,000 for business owners and professionals.

 

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