User:Edstein3

Financed Planning is a tradmarked term which refers to a proprietary, patent-pending business method developed by The Entaire Global Companies, a specialized retirement planning firm located in Duluth, Georgia.

How Financed Planning Works Combining elements of commercial lending, cash-value life insurance and equity indexed annuities, Financed Planning exists as an alternative to other "non-qualified retirement plans". Utilizing Financed Planning, a business acquires a simple interest only commercial loan using the company's assets or accounts receivable as collateral (lien is placed against these corporate assets by the lender). The proceeds of the commercial loan are then placed into a financial vehicle - either a cash-value life insurance policy or an equity-indexed annuity. The beneficiary of the financial vehicle is typically the owner of the business which took out the commercial loan.

Benefits of Financed Planning

The primary benefits of the Financed Planning approach are as follows: 1). Tax Efficiency. The monetary gains within the financial vehicle accrue to the benefit of the business owner, but that individual does not pay tax on the gains until they "cash out" of the policy. 2). Stability. In most cases, the financial vehicle is protected against declines in the markets, while still remaining tied to the underlying value of the securities for the purposes of calculating gains. 3). Selectivity. The business can be selective in choosing who is a beneficiary of the financial vehicle into which the original loan proceeds were placed. 4). Cost Effectiveness. Typically, large sums of money (often in excess of $1,000,000) are placed into the financial vehicle. As a consequence of this, the loan interest payments are "leveraged up" creating more significant buying power than a business could realize using other retirement planning approaches.\

Typical Program Participants

The typical participant in a Financed Planning program has a need for one the following features: 1). A method for catching up on a retirement planning program. Individuals who have waited for a significant period of time to plan for retirement require a rapid means of catching up. 2). A means for augmenting an existing program with additional funding. Business owners and physicians often find they have saved inadequately for the financial demands that will be placed upon them in retirement. 3). A tool for reducing risk within a financial portfolio. The financial vehicles that serve as the foundation for a Financed Planning program are often protected against negative returns in the equity markets (this concept is referred to as "principal protection"). 4). A combination of dormant asset "activation" and "protection. Financed Planning is often utilized by doctors as it allows the physician to simultaneously make use of their accounts receivable (a so-called "dormant asset") and, in some states, put in place a degree of asset protection from seizure (as a result of the collateralization of the loan in a the form of a lien placed against corporate assets.

Shortcomings of Financed Planning

Companies whose owners are poor credit risks are typically excluded from participating in a Financed Planning retirement program. Financed Planning programs are best suited for companies with reliable cash flows or steady streams of accounts receivable. Significant fluctuations in corporate income can often make participation in a Financed Planning program problematic.