Smart Investing

Smart Investing: Investing is Different with the OnePersonPlus® Defined Benefit Plan

A Sound Strategy

OnePersonPlus® offers qualifying clients substantial annual tax savings over a short period of time in the years before retirement. A portfolio that minimizes volatility at this stage is often recommended. Large fluctuations in investment performance will result in correspondingly greater variability in annual contribution amounts.If the balances in a OnePersonPlus plan increase sharply as a result of investment performance in a given year, the required annual contribution the next year will decrease. On the other hand, if the portfolio declines sharply, the required annual contribution will be increased significantly to offset the drop. The closer your client is to retiring, the more important it is to recommend investments that minimize the risk of a sharp decline in portfolio value.

Annual Investing

Clients are obligated to make annual contributions once their plans are established. Opening a plan involves a commitment to invest significant amounts each year for the life of the plan.

Flexibility of Investments

Clients have the flexibility to diversify across a selection of mutual funds, annuities, or equities with the objective of maximizing potential growth and minimizing portfolio volatility.

What Happens at Retirement?

At retirement, at reaching age 62, or upon plan termination, IRS rules generally allow the owner to roll the assets into an IRA, where they may to continue to grow tax-deferred. Maintaining the assets in a tax-deferred IRA creates the potential for continued investment growth and opportunities for estate planning strategies to transfer wealth to younger generations.