Tax Mitigation & Financial Independence

Robert S.

Robert is a 42-year-old health care practitioner in private practice. He is married, with two children, and has considerable debt stemming from his education. With hard work and a favorable practice model, his income is already in the mid-to-high six-figure range and it has continued to climb rapidly. However, as a resident of a high tax state, he is getting killed by taxes.

Goal

With a desire to be financially independent by age 60 Robert knew that the approach taken by many doctors, waiting until they were nearing retirement to really focus on a solid game plan, wasn’t going to be a workable strategy for him. Robert believed that his income would likely continue to rise, but he also hoped that forming a relationship with an experienced advisor could help him create a plan to mitigate taxes so he could keep more of what he is making. He had also heard horror stories about doctors being sued, so he was looking for ways to help protect his growing asset base from lawsuits and other risks.

Challenges

His professional education was expensive, to the tune of a few hundred thousand dollars. As a result, Robert still had considerable school debt. He knew that his practice could help him pay off this debt, but it still loomed over him like a dark cloud, so he wanted a plan that took more than just the immediate future into account.

Robert also had concerns in terms of personalization. He hoped that any plan presented to him would be custom tailored to his specifics, and he wanted everything to be taken care of with a high level of service. He reasoned that when he did have free time, he wanted to be able to spend it with his family and in other pursuits, not taking care of the details of his financial plan.

He also wanted reassurance that if he was going to stay with a firm long-term, that he would continue to get the personalized attention he needed to see his plans come to fruition.

Approach

When Robert partnered up with a financial advisor, he appreciated that they essentially became a part of his business – a structure within the existing structure.

His advisory partners helped him come up with a three-pronged approach to save on taxes, invest in his future, and pay down debt. Robert loved that they came up with creative solutions that were often outside the scope of the average financial planner’s responsibility.

Note: The Above Case Study Is Hypothetical And Does Not Involve An Actual Topturn Capital Client. No Portion Of The Content Should Be Construed By A Client Or Prospective Client As A Guarantee That He/She Will Experience The Same Or Certain Level Of Results Or Satisfaction If Topturn Capital Is Engaged To Provide Wealth Management Or Investment Advisory Services.