The Owner Benefit Corner: Using Your Business as a Vehicle to Efficiently Build Personal Wealth

Most business owners have some kind of retirement plan in place. They set it up years ago, they contribute every year, and they move on. What most never do is go back and ask whether that plan is still the right one for the business they're running today. In this episode of Your Wealth and Beyond, Andrew Rafal and Brian Hartstein open the fourth and final corner of the Four Corners of Business Owner Planning series: owner benefit planning. This is Part 1 of a two-part conversation, and it's built around one core idea. A 401(k) is just one of many ways to use pre-tax dollars to build personal wealth alongside your business, and the right approach changes as your business grows. Brian walks through the "pyramid" of pre-tax planning, from a basic 401(k) or SEP at the base, up through profit sharing plans, to defined benefit pension plans at the top for owners who need to put away significantly more. He and Andrew also get into non-qualified planning, the cost-benefit math behind these decisions, and how to know if your plan is actually staying compliant. In this podcast interview, you'll learn: Why almost every strategy in this corner comes back to one idea: using pre-tax dollars as effectively as possible. The "pyramid" of retirement plan options, from a basic 401(k) or SEP to profit sharing plans to defined benefit pension plans. Why qualified plans are sometimes called "employee plans," and where their contribution limits come from. The cost-benefit question worth asking before contributing more: roughly how many cents of every dollar you actually get to keep. How your age and your employees' ages affect what a defined benefit plan can actually accomplish. What a non-qualified plan is, and why it can be layered on top of a qualified plan rather than replacing it. Why plan design, not just plan structure, deserves a regular second look. The fork in the road every business owner eventually faces: keep reinvesting in the business, or start building personal wealth outside it. Find All Episode Resources Here: www.bayntree.com/127 Download the free Entrepreneur's Financial Planning Checklist: www.bayntree.com/download/entrepreneurs-financial-planning-checklist This episode is for informational and educational purposes only. Bayntree Wealth Advisors and its representatives do not provide legal or tax advice. Nothing discussed in this episode should be construed as legal or tax guidance specific to your situation. Any references to retirement plan design, tax code provisions, or planning strategies are general in nature and may not apply to your circumstances. Please consult a qualified attorney and/or tax professional before making any decisions about your specific situation. Investment advice is offered through Bayntree Wealth Advisors LLC, a registered investment advisor. Insurance and annuity products are offered separately through Bayntree Planning Group LLC.