Successful Legal Professional in their 50’s with nothing saved for retirement saves $30,758 a year in taxes and is working towards saving another $83,250 a year.
Client Snapshot
Industry: Law
Gross Revenue: $650,000
Entity Type: S-Corp
The Challenge
This Client had built a very successful business that was growing between 50-100% in revenue annually. They were so busy they hadn’t filed or paid taxes in a few years. They wanted to purchase a new home but couldn’t do so without their current tax returns. They had not saved anything for retirement and were taking all of the money out of their business for personal consumption, yet felt like their lifestyle didn’t reflect the large amount of money they made. As they were too busy, they had no financial team in place to help guide them, had not evaluated their risk management strategies and had a lot of credit card and loan debt at very high interest rates with zero debt strategy. Their strategy was to put their head down and “just keep working”, but deep down knew that it was not sustainable. The family financial burden fell squarely on their shoulders and it was heavy.
Encurio’s Approach
We always strive to meet a Client where they are. We meet brilliant people that just need the education and support of a good team once they are ready to prioritize their financial goals. Here’s what we did for this client:
- Determined the client was ready, willing, and able to make changes to their financial situation
- Encouraged the spouse to participate in meetings to educate and inform
- Caught up the tax filings quickly
- Worked directly with the lender to assist administratively with the home purchase
- Aided in constructing a financial team to evaluate the Client’s risk and debt
- Aided in putting appropriate retirement plans in place
- Income shifting to wife who worked in the company unpaid
- Helped select a reimbursement policy to ensure capture of all expenses
- Helped pay the Client appropriately from their company
The Impact
On top of significant tax savings of $30,758 a year, we have a plan to reach the goal of $83,250 in tax savings a year as the Client works to adjust their personal spending. Habits take a moment to shift and change to come into alignment with priorities, so we give the Client space to do that and check in as they go. They no longer have to cross their fingers and hope they have something at retirement, they now KNOW they are on their way to building the retirement they need. Encouraging spouse involvement in the meetings helped them understand their family financial situation and get on board with making changes, which alleviated a lot of the emotional stress of handling it all alone. The Client has reviewed insurance products to reduce their risk, as they are the main provider for the family, and consolidated their debt to a much lower interest rate. This gives them a clear plan on tackling the debt. Their financial team works together to protect, educate, advise and stay two steps ahead of the Client to help them reach their goals.
Overall, the Client feels less isolation and burden over the finances, has delegated things they do not need to be doing to free up time, and is on a clear path to be debt free and retire.
To learn more about how Encurio’s strategies could improve your businesses finances, set a meeting with us.
