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The process begins with the establishment of a new corporation. As part of our services,
BeneTrends takes care of the set-up of this new C-corporation using the proper legal structure
that supports the establishment and operation of the company's qualified retirement plan.
Next, BeneTrends designs a retirement plan for the new company. BeneTrends will design
this plan using specific features that are right for you and your business.
These features will be determined during an up-front needs assessment session with an
expert Retirement Plan Specialist from BeneTrends.
The new company then adopts the qualified retirement plan
The company's new retirement plan is designed to allow rollovers from most other types of
retirement plans.
This allows you -- and your company's employees -- the option to rollover current retirement
funds into the new retirement plan... tax-deferred and penalty-free
You and the other plan participants that have rollover money then direct how these funds
are to be invested for your own individual accounts.
The Rainmaker Plan design allows rollover contributions (and only rollover contributions)
to be invested in the stock of the new company that sponsors the retirement plan.
If you or other plan participants direct the investment of your rollover contribution in
company stock, the plan then purchases stock in the new company.
The company stock purchased by the plan is credited to the individual accounts of the
plan participants per their investment decision. Remember, only rollover money can be invested
in company stock.
For example, suppose you have $250,000 in an existing retirement plan and you require
$150,000 to purchase a new business. Using the Rainmaker process, you can roll the entire
$250,000 into your new company's retirement plan. You would then direct $150,000 of the
rollover to be invested in company stock. The remaining $100,000 in the plan can be
invested in other stocks, bonds, or mutual funds, depending on the investment options
adopted by your plan.
Your new company ends up with $150,000 in cash that it can use for any legitimate business
purpose, including payroll, rent, marketing, supplies, salaries, furniture and fixtures,
and more.
The plan ends up with company stock valued at $150,000 which is credited to the accounts
of the individual who directed an investment in company stock from their rollover monies
You and your employees will utilize the new plan to build personal wealth, plan for your
retirement, and build wealth for the company.
The retirement planning experts at BeneTrends will help you determine how to get the maximum
benefit from your plan and the best way to achieve your long-term goals.
Just like other qualified plans, rollovers, wage deferrals or contributions can be invested
in other investment options such as stocks, bonds and mutual funds giving plan participants
the ability to diversify their portfolios.
Although BeneTrends does not provide investment advice, you may use your own financial advisor
to determine what other types of investments to offer through your company's new plan,
or you can enlist the services of one of BeneTrends' nationally-recognized partner firms.
If at some point you find you need additional funding for the company, you have the option
to re-direct some or all of the $100,000 from the original rollover into additional company
stock.
BeneTrends will be doing more than you know to help you protect your assets and maximize
your benefits.
As you consider funding your business, the team at BeneTrends will help you evaluate
options other than the simple rollover process provided by many firms in this industry.
Depending upon your individual situation, it may be best for you to use a combination
of business loans and retirement plan funds to start your business.
These types of decisions have bearing on how quickly your business will arrive at break-even
or profitability, or how great your debt expense will be.
It's our goal to help you use your retirement plan to succeed in business --both now, and
in the future.
For instance, you might rollover all of your current retirement plan funds into the new
retirement plan, but only use a portion of them to invest in the new company's stock
The benefit of doing so is to provide your business a cushion for later, in the event
that you need additional working capital. Down the road, if your company needs a capital
infusion, it may not be easy to get a business loan at that time.
If you carefully direct your funds at the time of the rollover, you can purchase additional
stock later for just that type of capital infusion. BeneTrends is an expert in this
area.