Defined benefit plans can be key in helping to reduce their taxes while building significant retirement wealth, but choosing the right one is critical to avoid leaving money on the table.
SCOTTSDALE, AZ, February 10, 2022 /24-7PressRelease/ — High-income individuals must save considerably more during their working years than low and middle-income workers in order to maintain the lifestyle they now enjoy later in retirement. However, many business owners, entrepreneurs and professionals who contribute to such plans may be doing so without knowing their plan is the right one for them.
Defined benefit plans, often referred to as “pensions,” provide a guaranteed payout to individuals during their retirement years based on calculated regular contributions made during the working years. Those contributions also happen to be tax deductible. But as noted in the article titled How to Lower Income Taxes and Build Significant Retirement Wealth in the January 17, 2022, issue of Private Wealth Magazine, Vince Annable, CEO of VFO Advisory Group, explained that not all defined benefit plans are alike.
“There are a number of different types of defined benefit plans,” says Mr. Annable. “A mistake many business owners and professionals make is not choosing the right defined benefit plan that best matches their needs and financial goals. Some plans enable putting away hundreds of thousands and potentially millions of dollars, all of which is tax deductible. However, there are multiple options as to which type of plan to utilize to enhance their individual benefits based on their particular needs.”
Vince Annable, who manages the wealth of high-net-worth clients from his office in Scottsdale, Arizona, says many well-meaning individuals with defined benefit plans often still leave money on the table. “A major reason so many business owners, physicians, and dentists are losing out is that they are not aware of what’s possible, understanding what their options are, and they’re likely talking with financial advisors who have a limited understanding of how to implement the right defined benefit plans. We always do a thorough discovery process to determine the right plan for the client because certain plans allow significant enhanced benefits depending on the client’s situation.”
Readers who contribute to a defined benefit plan are encouraged to consult with a financial advisor or wealth manager to determine if their defined benefit plan is best suited to their needs and objectives.
VFO Advisory Group LLC., is a provider of elite-level wealth management services to high-net-worth individuals and families through a virtual family office. Additional details can be found on the firm’s website at https://vfoag.com or by calling 888-635-9724.
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