The NEW High Income

15th Nov 2017



Recently, we have been impressed by the number of clients who have high income they’ve earned as educators and content producers – often assisted by the Internet. They’ve learned to take advantage of the new media to promote themselves, minimize brick and mortar costs, and build extremely profitable businesses.

These clients could be living anywhere, even in your community. But with no physical location, how do you find them? Read on to find out.


These self-employed clients, from Georgia, Idaho and California, came to us directly.

Business Partners with 3 Employeespeople clapping

A professional investor, with years of experience as a hedge fund manager now runs investment seminars, has a podcast, and online materials to promote his seminars, as well as several popular books.  He has a partner and three employees so we designed an OwnersPlus™ Cash Balance + 401(k) program that will allow him to contribute and deduct over $466,000 with 96% of it on behalf of the two owners.

High Income on the Sideapple, pencils, and chalkboard

A high school teacher has developed excellent curricula for over 15 years. And then along came the Internet! By selling her attractive teaching guides online to other teachers, this smart teacher is earning over $300,000 as side income in addition to her teaching salary each year. We designed a OnePersonPlus® Defined Benefit plan which will allow her to contribute almost $150,000 toward her own retirement on top of what she is saving in her 457 plan. The contribution is deductible, lowering her projected 2017 tax bill by $55,000.


Individual with High Incomestandardized test

A sole proprietor, age 48, has built a thriving SAT tutoring service in an affluent community. By conducting group sessions as well as one-on-one coaching out of his home, his Net Schedule C income is $450,000. He will contribute $160,000 to a OnePersonPlus® Defined Benefit plan, and another $33,000 to a one person 401(k). The combined $193,000 contribution allows him to hold on to and invest $74,000 that would have been owed in 2017 taxes.



Do you have high income clients or prospects who might benefit from a defined benefit or cash balance plan? Create a personalized estimate of contribution maximums and tax savings for each qualified prospect. 




Although these clients may not have storefronts, if they have high income, they are likely to be working with a CPA.

Many CPAs are not aware of how defined benefit or cash balance plans might work for the 1-10 person company but they do know which of their clients are suddenly reporting extremely high income and need a tax benefit.

 We’ve pulled together a slew of materials that you can use to introduce CPAs to Defined Benefit and Cash Balance plans.


Each year, over 20% of our clients for defined benefit and cash balance plans are physicians or small medical practices. They make great clients because they have high, and generally stable, income. They are also easy to find in your community. If you haven’t seen our past stories on doctors, we’ve included a current example for our Client of the Week.

CLIENT OF THE WEEKclient of the week

Neurologist Uses His Head

A neurologist, age 70, who consults on brain injuries, has a net profit of $500,000 from his sole proprietorship. He opened a OnePersonPlus® Defined Benefit Plan and will be contributing an estimated $200,000 each year for the next five years…



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