How we helped Sarah (Consultant) Legally Turn $70K of Trapped Profits into Tax-Free Wealth Through Tax-Sheltered Investments

Learn how Sarah saved $22,500 in annual taxes by restructuring $70,000 of retained earnings into a tax-sheltered investment strategy.

Sarah's Initial Situation:

  • Her business was generating $220,000 in annual revenue

  • She was taking home $90,000 in personal income

  • About $70,000 was sitting in retained earnings each year

  • Like many business owners, she was frustrated watching her investment gains get eaten away by taxes

  • She wanted to invest in real estate and plan for retirement, but traditional investment vehicles weren't tax-efficient

Sarah's Main Concerns:

  • She was paying too much in taxes on her business investments

  • She needed flexibility to access her money

  • She wanted to build long-term wealth efficiently

  • She was looking for better estate planning options Sound familiar? These are challenges we hear from business owners every day.

Sarah's Solution Implemented:

  • A specially structured Tax-Sheltered Investement Strategy (in the case of Sarah, she opted for a special life insurance strategy that allows for tax-free investment growth)

  • Flexible access to capital through tax-efficient borrowing

  • Enhanced estate planning benefits

  • Monthly premium structure to optimize cash flow

Actual Numbers of Sarah's Transformation:

  • Taxable Income & Tax Burden:

    • Before: $220,000 in revenue with $70,000 in retained earnings being taxed at corporate rates

    • After: Restructured to reduce taxable corporate income by $45,000 annually

    • Tax Savings: Over $22,500 in the first year alone

  • Investment Growth:

    • Before: Her $70,000 in retained earnings were growing at 7% but losing nearly half to taxes

    • After: The same money now grows completely tax-free within our strategy

    • 20-Year Projection: $277,513 tax-free vs $147,542 after-tax in a traditional investment

  • Access to Capital:

    • Before: Accessing retained earnings meant triggering taxable events

    • After: Can access up to 90% of accumulated value tax-free through policy loans

    • Current Accessible Amount: Over $60,000 tax-free

  • Estate Planning:

    • Before: Estate would have received $147,542 after taxes

    • After: Estate will receive over $500,000 tax-free

    • Added Benefit: Corporate-owned strategy provides creditor protection

Want to find out if our Tax-Sheltered Investments are for you?

Apply today to see current availability in your area and connect with one of our top 0.01% financial consultants for a free tax-efficiency audit.

Preserve Wealth Group is the premier consulting firm for high-income business owners and professionals who want to legally minimize taxes, grow wealth tax-free, and secure a lasting financial legacy.

Resources

Youtube

© 2025 Preserve Wealth Group. All rights reserved.