How We Helped Three Dentist Practice Owners by Leveraging Our Unique Expertise

Maximizing Tax Savings with a Cash Balance Plan

A high-earning dental practice owner generating $3.5 million in annual revenue thought they were optimizing their retirement savings with a traditional 401(k) and profit-sharing plan. After seeking a second opinion from a specialized advisor, they discovered a cash balance plan could allow them to contribute an additional $250,000 annually, significantly reducing their taxable income.

By implementing the plan, they reduced their annual tax liability by nearly $100,000, while accelerating their retirement savings with tax-deferred growth. Over the next decade, this strategy positioned them to accumulate an additional $3 million, all while keeping more of their hard-earned money. This experience reinforced the importance of regularly reviewing financial strategies with an expert to uncover hidden opportunities.

A dental entrepreneur planning to sell their multi-location practice for $12 million initially focused on federal tax strategies, overlooking key state tax implications. A second opinion from a tax strategist revealed a potential tax liability of $1.2 million, which could be significantly reduced through a restructuring of the sale. By carefully timing the transaction, adjusting payment structures, and leveraging state-specific tax exemptions, they were able to legally minimize their state tax burden to $400,000, saving over $800,000.

This additional capital allowed them to reinvest in new ventures and secure their long-term financial goals. Without seeking a second opinion, they would have left significant wealth on the table, proving that a proactive tax strategy is crucial during a business exit.

A dental practice owner and their spouse, co-owners of a $5 million group practice, were focused on growth but were concerned about increasing tax liabilities and estate planning. Seeking a second opinion from a virtual family office, they adopted a holistic approach that integrated tax-efficient entity structuring, estate tax minimization strategies, and advanced retirement planning.

As a result, they successfully reduced their effective tax rate from 42% to 30%, achieving $500,000 in annual tax savings, which was redirected into diversified investments and long-term wealth-building opportunities. Estate planning adjustments further ensured that their wealth could be passed on to their heirs with minimal tax exposure. This case highlights how aligning business and personal financial planning can lead to significant wealth preservation and peace of mind.

Wrapping Up

Each of these case studies highlights the power of a second opinion, ensuring no opportunities are overlooked in building and preserving wealth. For personalized advice, contact me directly at 818-534-4949 to explore tailored solutions for your dental practice.

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