The start of a new year is a great time for everyone to commit to smarter financial planning moving forward. But if you’re a trial lawyer, you have a distinct advantage over business execs and doctors in terms of managing wealth, as you’re part of the only profession with access to unlimited income deferrals. Deferring attorney fees might be the tool you’re missing in your comprehensive wealth management plan.
By taking advantage of attorney fee deferrals, you could achieve the following benefits, personally and professionally:
- Tax-deferred growth
- Flexible financial planning options
- A lower tax bracket
- Reduction in tax obligation over time
- Protection against loss of principal
- Predictable source of future income
For many, the hardest part about choosing to defer fees is this rule: you must elect to structure your fees prior to settlement, and it must be included in the settlement agreement. If it seems as though you always need to use a fee immediately to maintain your practice, then start small. You can elect to defer either a portion or the entirety of your fee — whatever makes the most sense for you and your practice.The possibilities are endless when coming up with a plan. It’s important to work with a professional to choose a plan that best fits your individual needs.
As an attorney, the most important player on your financial team is you. The second largest stakeholder is the IRS. Choosing when to pay them gives you the power to effectively design your stream of income, plan for retirement, and build wealth.
For More Information About Getting Started, Contact John Bair
John Bair has guided thousands of plaintiffs and attorneys through smart financial planning as co-founder of Milestone Consulting, LLC, a broad-based settlement planning and management firm. Milestone’s approach is comprehensive and future-focused. John’s team has guided thousands of clients by taking the time to understand the complexities of each situation. They assess the best outcome and find the path that enables each client to manage their many needs. Read more about Milestone Consulting at http://milestoneseventh.com.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).