Mike and Carol, ages 48 and 45. Mike owns a successful consulting business. His wife Carol works as a business analyst in the healthcare industry. They have three children, with two still in high school.
Mike’s business is thriving and demanding more and more of his attention. Although the business revenues are growing, his net profit after taxes is not growing nearly as quickly. He’s finding the workload is causing him to miss important time with his family, causing additional stress.
Mike and Carol feel like they are playing catch up on their retirement savings. They want to know if there is a way to work smarter, not harder.
After analyzing Mike’s business structure, we recommended a change allowing him to take additional allowable deductions on his tax return. We also modified his retirement plan, shifting to create a pension plan for his business. This allowed him to save over $200,000 annually into pretax retirement savings, thus reducing his taxable income by the same amount.
Mike had felt like the only solution was to run even faster on the proverbial hamster wheel. We were able to demonstrate that, with some changes, he could increase the amount he takes home without increasing his workload.
This has allowed him to shift some of his attention to family. He’s been able to help coach on his kids’ sports teams and plan more family trips.