Finding the millionaires next door
and helping them transition to a
robust retirement without a heavy tax burden.
Nathan’s practice is not affiliated with Gothenburg State Bank, but is housed in its main branch facility. His goal is to help create and maintain wealth for individuals and small business owners in the local area of about 1400 Households.
His primary focus is on creating retirement plans for micro business owners, providing Traditional IRA, Roth, SIMPLE IRA and 401(k), and since 2008, Defined Benefit Plans.
Like many other advisors, he splits his time on individual wealth management services and small business retirement planning. He has over 40 business plans to manage, representing about 25% of his total of $140 MM AUM.
Nathan’s practice reflects his two areas of focus: Wealth Management for individuals and Retirement planning for small business owners. The three roles are:
Nathan says "Our goal is to help create and maintain wealth by keeping our clients' objectives in focus, staying in contact with them throughout all market conditions, and making investment adjustments as economic or lifestyle conditions warrant. We maintain a constant commitment to putting service first."
Nathan focused on the key partners of small local CPA firms to educate them on those types of qualified plan products that are available to them.
“A critical part of the education process was to build trust with the partners and then gain access to their staff. Education Programs and frequent visits were key“
As a result of this relationship, they identified a specific market opportunity:
Farmers that have net worth of $1.6 MM but only spend about $60k a year.
Because of the seasonality of the business with expenses in one year and profits deferred to the next, a potential tax issue can arise when a business winds down after a farmer decides to retire.
Nathan said, “Planning five years out from working to retirement is key. By using the DB plan we can accelerate depreciation without causing a big write down when the business shuts down at retirement.“
“The CPA manages the client interaction and brings me the business. They sell the client and we implement the DB plan and funding arrangement.“
For Marketing Resources to use with CPAs click here.
New Dedicated DB Plans Sales: Over $2 Million AUM (through 2014 funding) with 4 start -up plans since 2008
DB Only: Started in 2008 Farming business 2 person AUM $884 K
DB+401(k): Started in 2011 Farming business 2 person AUM $624K
DB Only: Started in 2012 Farming Business 1 person AUM $239K
DB Only: Started in 2012 Farming business 2 persons AUM $300K (through 2015 funding)
“DB’s help my clients wind down their business and transition easily into retirement.”
For his clients: Farmers
Maximizes retirement savings and minimizes tax issues, by smoothing out and avoiding tax complications resulting from the year to year write-offs of the business accounting.
For the CPA
Increase client loyalty
Builds reputation for providing sound and innovative tax solutions
For the Financial Advisor
All new business
Efficient and effective method to gather assets that are larger than typical solo 401(k) plans
CPA refers the potential DB client, and manages the sale, very efficient process as prospects are pre-qualified
Ancillary Qualified and Non Qualified Plan flows as CPA firm provides other referrals
“Dedicated DB enables me to fix complicated tax issues and simply compare the advantages of different types of retirement products“
Dedicated DB has off the shelf marketing and CE programs to develop relationships’ with CPA’s
Dedicated DB’s Prototype defined benefit plan document is written specifically for these types of clients and offers funding flexibility.
Dedicated DB’s on line calculator allows Advisors to forecast the impact of various Defined Benefit solutions compared to other types tax solutions quickly
Dedicated DB provides an inside sales support desk and consulting to help Advisors win more Defined Benefit plans.