PLIP - Financial Strategies Group

Welcome to the Physicians Life Income Plan!

How to dial your retirement tax bracket

Watch a 1 minute video

Creditor Protection and Privacy

Reduce state taxes without moving

Do You Have Enough Disability and LTC?

Meeting ID: 836 7929 7891
Passcode: 453339

Join us for a short zoom call to discuss the plan as well as how to get started with it. This will be a short 15 minute zoom each month but the host will stick around and answer questions if anyone attending would like.

How to get started!

Schedule a one on one call with the head of the program Jason Hiser

You can also reach out directly to Jason Hiser.
Jason@fsgllp.com
Direct – 847-275-0645

Features and Benefits:

Accumulation-focused plan design
High early cash surrender values
No income contribution limits
No direct surrender charges
More than 80 investment options
Investment discretion
No required minimum distributions
Tax-free transfers
Tax-free rebalancing
Tax-free distributions
Tax-free death benefit to beneficiaries
Asset protection in NY and many states

The Retirement Gap

Over the years, you've achieved a level of success few ever realize. But as your income has grown, your retirement investment options may have become more limited. You may face strict contribution limits on qualified plans or are excluded from some common plans such as Roth IRAs, making it difficult to meet you accumulation goals. Your financial independence should reflect the level of success you've achieved. But without a strategy that seeks to enhance opportunities for tax-advantaged assets, you may be facing a significant future income gap. That gap could mean less freedom and security for your family, putting your financial strategy in jeopardy. Thankfully, there's a solution.

How the Life Income PlanSM Works

Life Income PlanSM Premiums are paid into institutional/corporate-owned variable universal life insurance policies. Here’s how the process works:

Implementation

Pay initial Premium
Targets 97-107% of 1st year cash surrender values based on market performance and other factors
Initial Policy Sub-Account allocation

Accumulate

Pay Annual Premiums as structured
Investment options in the form of Sub Accounts
Tax-Advantaged

Manage

Automated Annual Review Provided
Policy sub-account allocation rebalancing
Risk Tolerance changes
Tax-Favorable access to cash values*
Quarterly Sub-Account monitoring/scoring
Policy Sub-Account allocation guidance

Distribute

Tax-Advantaged Distribution Options through
Policy Withdrawals and Loans*
No pre-59½ Early Access or Withdrawal Penalty

Mortality

Tax-Free Death Benefit

* Loans and withdrawals reduce the policy’s cash value and death benefit, and withdrawals in excess of the policy’s basis are taxable. Under current rules, loans are free of income tax as long as the policy remains in effect until the insured’s death, at which time the loan(s) will be satisfied from income-tax-free death benefit proceeds, and, if the policy is surrendered, any loan balance will generally be viewed as distributed and taxable.

The Life Income PlanSM is built on four tenets: tax-deferred accumulation, investment options in the form of sub accounts, tax-advantaged income, and a death benefit, making it one of the most robust accumulation options on the market.

Imagine...

For a moment, imagine the IRS changed the rules, allowing physicians the chance to invest in a Roth IRA without any contribution or earned income limits.

Would you be Interested?

How much would you want to invest?

Although that change is highly unlikely, PLIP has engineered tax and accumulation advantaged strategies that can help alleviate the challenges facing physicians, like:

Limited pretax contributions by ERISA plan designs
Accessibility limits to qualified assets prior to age 59½
Required minimum distributions at age 72
Phase-out provisions based on income for post-tax Roth IRAs

Let PLIP put you on the path of income planning and financial freedom.

Asset
location
is key

Asset location
Asset location refers to the different tax locations of
portfolio holdings and tax treatment when you withdraw your asset.

Without asset location planning

Let’s take a look at an example. The Smiths just retired and need to pull $350,000 from their investments this year to maintain their lifestyle. If the Smiths had never done an asset location plan, they may not have been investing in all three locations during their working years, which means they may only be able to pull their retirement income from one location, the ordinary income location, which is typically a 401(k). In this case, they would end up paying $70,085 in taxes, based on current tax treatment.

Effective tax rate = 20%

With asset location planning

In option 2, the Smiths met with a financial professional and, based on their asset location plan, determined an optimal mix of investment locations. Since they had been investing in all three locations, they have the option to pull their $350,000 from all three locations. In this case, they can take $150,000 from the ordinary income location, $100,000 from the capital gains location, and $100,000 from the tax-free location.

Effective tax rate = 10.9%

Total tax savings with asset location planning =
$31,979 (45.6%)

By determining their tax rates, finding the ideal tax locations and applying tax bracket planning, the Smiths were able to reduce their effective tax rate from 20% to 10.9%, a total of $31,979.

Of course, this is just a hypothetical example — with your personalized asset location plan, you’ll be able to determine how best to potentially reduce your taxes based on your income and investments.