Sarah’s Tax-Free Growth Plan
Sarah built tax-free wealth for growth, retirement, and legacy using the Wealth Multiplier Account™.
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Let’s MeetOverview
Background
Sarah, a successful lawyer and owner of a growing law firm, expanded her practice from a solo operation to a team of over 20 associates and staff in just 8 years. With substantial net income flowing to her holding company, Sarah needed a strategy to grow wealth tax-efficiently without sacrificing liquidity for business expansion. Her priorities included funding growth, setting up a tax-efficient retirement plan, and preserving wealth for her young family. Finding a trustworthy financial partner was crucial for managing her finances today and securing a smooth legacy transfer in the future.
Goals
- Grow wealth tax-free in Holdco.
- Maintain liquidity for office expansions and hiring.
- Build a tax-efficient retirement plan.
- Ensure a tax-free legacy for her family.
Challenge
Taxation
As Sarah’s law firm grew, so did her corporate tax liabilities. Retained earnings in her holding company faced high tax exposure, and accessing capital meant triggering significant tax bills. With plans to open a second office, invest in legal technology, and hire more associates, liquidity was essential. She also lacked a retirement plan and was concerned about estate taxes when passing wealth to her family. Sarah needed a strategy to preserve, grow, and transfer wealth efficiently without sacrificing business growth.
Solution
Wealth Multiplier
Sarah implemented the Wealth Multiplier Account™, over-funding a participating life insurance policy in her holding company to build tax-free cash values. The policy was used to secure a line of credit at the bank, allowing Sarah to lend from Holdco to Opco for business expansion. This setup enabled her to:
- Grow retained earnings tax-free.
- Access capital for growth without triggering taxes.
- Secure a tax-free death benefit for her family.
- Use the CDA for tax-free wealth transfer to beneficiaries.
Results
Post-Implementation
Since setting up the Wealth Multiplier Account™, Sarah has:
- Built a large, tax-free capital pool inside her life insurance policy.
- Secured a 100% LTV line of credit for business expansion without tax penalties.
- Funded office expansion, new hires, and legal tech investments.
- Set up a tax-efficient retirement plan using Holdco funds.
- Created a plan to transfer wealth tax-free through the CDA.
This strategy provided Sarah with liquidity, reduced tax exposure, and secured her family’s financial future.
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Client Testimonials
Clients who have worked with us using similar strategies.
"We worked specifically with Jordan who was knowledgeable, thorough, and patient."
We worked with Safe Pacific Financial to help us find the right life Insurance policy for us, and we are very happy with the service they provided. We worked specifically with Jordan who was knowledgeable, thorough, and patient with our many questions. We would certainly work with Safe Pacific Financial again and would recommend them to friends and family.
"Jordan was amazing to work with!"
Jordan was amazing to work with! He was patient and understanding when it came to answering all my questions and concerns. I highly recommend Jordan for any financial needs!
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My wife Brooke and I had a great experience working with Safe Pacific and their team. Although some of the insurance industry and the investment products can be complex, Jordan was able to explain them in a simple and digestible manner which really helped us to understand the long term value. I would highly recommend the Safe Pacific team and we look forward to working with them more in the future.
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Had a great experience with Safe Pacific. As someone who doesn't understand the business of insurance, I was not stressed at all with the process and Jordan and his team made it smooth and explained the entire process. They were responsive in a timely manner and helped me get a great deal on my disability insurance. Would highly recommend!
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Jordan and Megan were very helpful in helping my partner and I secure term insurance and CI insurance. We talked with both of them about our current situation and context, and Jordan was able to walk us through the options and clearly laid out his recommendation. He answered all of our questions and followed up promptly as we moved along with the selection and registration process. Would highly recommend their services and support.
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The great thing about working with Safe Pacific is the personal touch they add to the service and how they always make me feel like a priority. Thanks Laurent and Rob for taking care of me.
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I have worked with Robert Trasolini and Laurent Munier several times and I find them extremely helpful when it comes to Life, Critical illness and Disability insurance. They are able to explain things clearly and are really great guys to work with. I highly recommend them to my colleagues, clients and friends.
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Robert recently helped me acquire life and critical illness insurance. Not only did he explain every step of the process and walk me through it in a thorough and detailed manner, but Rob is great at taking complex terms and concepts and explaining them in simple, easy to understand manner.
