Two Strategies to Protect Your Small Business Income Stream

As the owner of a small business, there is never a shortage of things to be thinking about. Whether it’s managing a growing team, expanding and opening new stores or thinking about how to exit, as a small business owner you are always making decisions to take your business to the next level. But it may be time to start thinking about turning your success into a steady stream of income that lasts forever.Think of it like setting up your own pension plan.

Longevity annuities allow individuals to use a portion of their savings today and turn it into a lifetime paycheck that begins when you need it down the road. The Treasury Department recently made it easier to purchase these lifetime income streams within your IRA, providing the added benefit of tax deferral on Required Minimum Distributions (RMDs). Read on to hear about two ways to set up your own personal pension plan that will help ensure your business continues to pay dividends for you.

1. Deferred Income Annuity: If you have just completed a liquidity event, a Deferred Income Annuity is a great way to take a portion of your earnings and turn them into lifetime income. Deferred Income Annuities are funded with capital you have already paid taxes on and with a single premium today, these products provide lifetime income starting at a later date.
2. Qualified Longevity Annuity: The Treasury passed regulations last year that now allow lifetime income and tax deferral within your qualified plans. If you have a Traditional, SEP or Simple IRA, up to $125,000 can be contributed to a QLAC. QLAC payments allow you to have a lifetime income stream and push a portion of your RMD payments out until 85 years old, providing tax deferral for those who may not need to take distributions.

To learn more about these strategies, visit our website at www.myabaris.com, download a free, no obligation guide at www.myabaris.com/qlac-guide or call us at (888) 248-8995. We are the only platform that provides you real time quoting, comparison and educational tools to turn the hard work you’ve put in your business into a life long stream of income.