Principal Office Location
20650 Stone Oak Pkwy, Suite 100
San Antonio, TX 78258
Phone: (210) 530-1292
Fax: (210) 530-1298
Other office locations available by appointment only in New Braunfels, and Victoria.
Global Financial Private Capital does not offer tax or legal advice. Individuals are advised to consult with their own CPA and/or attorney regarding all tax and legal matters. Investment Advisory Services offered through Global Financial Private Capital, LLC, an SEC Registered Investment Adviser. Any comments regarding safe and secure investments, and guaranteed income streams refers only to fixed insurance products. They do not refer, in any way to securities or investment advisory products. Fixed Insurance and Annuity product guarantees are subject to the claims-paying ability of the issuing company and are not offered by Global Financial Private Capital.
Texas Tax Advisory © 2013 | All Rights Reserved
20650 Stone Oak Pkwy Suite 100
San Antonio TX 78258 US
Employee Stock Ownership Plan (ESOP):
An ESOP can be an extraordinary financial tool to accomplish corporate goals and generate tremendous tax savings for both the corporation and its shareholders. An ESOP’s primary purpose and mandate is to acquire stock of the sponsoring corporation and the ESOP is permitted to borrow money to accomplish this goal. There are many flexible uses and benefits, some of which are listed below.
• Creation of a liquid marketplace for closely held stock which provides a viable tax advantaged exit strategy for shareholders under Section 1042.
• Maximizing the stockholder’s cash-out proceeds via Section 1042 rollover that allows the stockholder to eliminate, through proper planning, federal and state income taxes on the long term capital gain on the sale of the stock.
• Sell some or all of the privately held stock and still maintain control.
Investment Grade Life Insurance:
This valuable asset is created when one maximum funds (pays maximum premiums as fast as possible, using a minimum death benefit by IRS standards) a specifically designed life contract from a highly rated (AA or better) carrier. Wal-Mart owns over 350,000 such contracts using the lives of their employees. The most successful 20 US Banks keep between 25% and 50% of their Tier-One Capital inside of Investment Grade Life Insurance, in order to eliminate taxes and to earn a safe, predictable rate of return. This strategy has proven to be the single most profitable & safest investment made by institutions over the last 30 years.
• By minimizing the death benefit, it is possible to reduce the cost of insurance + fees to be less than 1/3 of the taxes (that would be paid on a similar investment, if it was taxable).
• By installing an Equity Indexed Crediting System inside of the contract, we can earn market like returns in years when the markets are positive, and keep our principal secure when the markets crash. This is a very conservative strategy that yields tax free, predictable returns.
• Institutions have figured out a way (using this strategy) to insure their money from downside risk, from taxation, and guarantee themselves a great rate of return. The ultimate guarantee comes when these contracts self-complete, since nobody is getting out of here alive.
Captive Insurance Company:
When a business’s growth begins to accelerate, income taxes and overall risk begin to accelerate as well. A Captive Insurance Company may be the answer for the business owner.
• A growing business can choose to pay tax deductible premiums to its own Captive Insurance Company, instead of a 3rd party, saving itself the profit margin that would otherwise have to be paid to that 3rd party.
• Tax deductible premiums can generate tremendous bottom line savings to the business.
• Overall reduction in insurance costs can be an additional benefit to bottom line profitability.
• Reduction in risk exposure is a possible benefit, as well, since the Captive Insurance Company will protect the business from its precise exposure to applicable risks, that may not otherwise be insured by a 3rd party.