Much has been discussed and written in regard to retirement strategies for incorporated professionals and business owners.
Proposed solutions include using combinations of financial instruments and strategies available through tax legislation and corporate structures.
In almost all cases advisors and consultants (which include accountants, tax specialists and financial advisors, all whom I will refer to as “Advisors”) have worked to integrate solutions that would meet the needs of retirement planning, estate planning, tax planning, and succession planning.
Our Research has concluded that the order of implementation and choice of solutions proposed by Advisors is based on: knowledge, biases and resulting Advisor compensation.
The result is that few incorporated business owners and professionals have a secure retirement plan with a predictable outcome.
The model which forms part of this article illustrates a variety of retirement strategies and instruments that are based on the risks associated with the “three dark horsemen” of retirement planning: market volatility, tax changes and shifts in legislation.
It illustrates a “paradigm shift” from current practice, where the focus has been the middle section of the pyramid.