For some individual over-achievers, they make a substantial income in just one or a few years. While they may well repeat it for many years to come, they also may not, depending on injury, competition or other circumstances of life. For them, securing an income for life over a short period of time is important in giving them the confidence to continue pushing the envelope.

The one-pay pension plan may be suitable, though it can be funded over more than one year if that is more suitable for cash flow and meeting other financial objectives. As an example, and using an assumed rate of return of just six percent, a 25 year old could deposit $1 million in a single year, shelter the entire amount from tax on subsequent growth, and plan for an income flow of $70, 000. from age 35 on. The tax-free income makes it the equivalent of a pension of about $100, 000./ year. While other plans ran out at age 71, this plan still had $2M + at age 90.

This could be ideal for a professional athlete, in which case planning may well include integration with a personal services corporation and Retirement Compensation Arrangement (see article on RCAs) or a stand-alone investment opportunity to protect earning power.

The available tax-free payout in the event of disability can make this a great way to provide added protection as well. For young business owners who do well on their IPO, this can also be a good fit, as everything else is gravy, and they can focus on their next big project, without worrying about having a nest egg for their future. Again, this would probably be integrated with one or more of the programs we offer for business owners.

For actors and musicians, this is also a great way to provide for the long term without worrying about the next gig or whether audiences will turn fickle with the next face or sound.

Strategic Edge works directly with your agent, accountant, lawyer, and other trusted advisors, ensuring the best possible value and all of the relevant information to assist the other people you work with and trust. We don't replace existing talent; we add to it, and we enhance it.