2020 Impact: Financial Futures
The yearlong set of challenges in 2020 have us all rethinking a lot and especially when it comes to our financial futures, both short-term and long-term. Perhaps it’s time for you to consider some different ways of preserving your income for a more secure future.
STRUCTURING ATTORNEY FEES: WHAT IS IT?
Simply put, any attorney who is paid on contingency fees, may structure those fees in a steady stream of income over time on a tax-deferred basis. In other words, you can roll your fees forward after the settlement of a case to minimize immediate income taxation.
This will sound familiar to attorneys who work with us to customize structured settlements for plaintiff clients. There are some differences but the idea is the same. The Attorney Fee Structured Deferral is not tax-free, however it does provide tax deferrals, which can stabilize the income for you and your firm without limits to the income contributions. And we can customize a plan where you choose a fixed rate of return or a market-based approach, depending on your risk tolerance.
DID YOU KNOW THAT 1 IN 10 PEOPLE AGE 65 NOW WILL LIVE PAST THE AGE OF 95? ARE YOU READY?
You can start your payments in an Attorney Fee Structured Deferral right away or have the steady stream of payments start in 10 or 20 years. This lets you decide your lifetime of income in sync with your potential retirement needs. And your income payments are reported to the IRS in the year you receive those payments instead of a big tax hit for a large lump sum of income.
A WELL-DESIGNED ATTORNEY FEE DEFERRAL WITH THE VALDEZ TEAM HAS BENEFITS:
• Lower your federal and state tax liability
• Control the timing of your income
• Distribution can start before age 59
• Accumulate wealth at your pace
• Pay business expenses for the law firm
• Source of capital for the law firm
• Incentivize and retain employees
COUNT ON OUR EXPERTISE
Our expertise and experience is important, especially when it comes to the details. For example, you cannot structure fees from income you’ve already received, however we can help you navigate what fees might be best for you to defer. And you don’t have to structure the plaintiff’s settlement in order to qualify for an Attorney Fee Structured Deferral. It’s that kind of Valdez expertise and much more that sets us apart.
We understand the ebb and flow of a law firm’s income based on a contingency fee practice. We have extensive experience with solo attorneys and large law firms for the past 55 years in the combined work by the father-son duo that heads up the Valdez Team at Ringler. And we also have a strong commitment to serve the needs of our clients to meet their individual goals for a secure financial future through whatever challenges come our collective way.
REACH OUT TODAY FOR A FREE CONSULTATION.
2020 Impact: Financial Futures
3 months ago2020 MAY HAVE YOU RE-THINKING YOUR FINANCIAL STRATEGY FOR THE FUTURE
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