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									How to be a "Perfect Consultant" from EntryPoint                                             file:///C:/Documents%20and%20Settings/JMathe/Desktop/EPCPC/2006...

                                                                                                            Helping You Advance Your Career
                    The Perfect Consultant                                                                           and Grow Your Business
                                                                                                 Vol. 2 No. 15 - [[date_format(date_current(), "MM d, yy")]]

                       Dear [[FirstName]],

                       As an independent consultant, you are always trying to do the best thing possible for
                       your client ... anticipating the need, formulating the strategy, and implementing the
                       solution for the project's successful outcome. The same theory should be applied to
                       each of us personally when looking at the "big picture" of our future financial security.

                       We found this information clear cut and straightforward, and we hope you do, too.

                       Financial success, Good Consulting and Happy Thanksgiving!

                       Pete Martin

                       in this issue
                                     Retirement Planning for Self-Employed Consultants
                                     Coming Up In Future Editions...

                       Retirement Planning for Self-Employed
                       by Frank Armstrong III
                       Like many people, more than a few consultants haven't saved enough for retirement.
                       But, unlike most corporate types, self-employed consultants with no employees can
                       design almost any kind of pension that they want.
                                                                                                                       MUST SEE
                       The advantages of pension plans are obvious: forced savings, tax deductions, tax
                       deferral of gains, and the ability to pass on tax-deferred assets to future generations.        More About EntryPoint Consulting
                       You may think pension plans are only for employees of large corporations. Wrong! A
                       single-participant plan is very easy, economical, and effective to set up. If you don't         Management Consulting News
                       take care of your own retirement, who do you think is going to do it for you?
                                                                                                                       Guerrilla Marketing for Consultants
                       In the distant past, when it came to retirement plan options, the self-employed or
                       members of a partnership were at a distinct disadvantage relative to corporations.
                       Although over time, those restrictions have been removed, the perception of limited
                       choices still lingers. That's unfortunate because now you have plan flexibility that would
                       make the average corporate employee turn green with envy.

                       It's great being the sole decider. You can design a plan that meets your needs exactly
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                       without negotiating with others who have different objectives and financial situations.
                       And with no employees, there are no pesky top heavy or cross testing issues to                  SAP CRM Functional Consultants
                       complicate plan design and administration. Best of all, 100% of the pension deposit             SAP GTS Consultants
                       goes directly to your own account.                                                              SAP Recruiter
                                                                                                                       Other Openings
                       Designing and maintaining your own plan doesn't have to be time consuming or
                       expensive. All the major discount brokerages have a full spectrum of pre-approved
                       plans that you can adopt with just a few check marks. Pre-approval means that the IRS
                       has already accepted the plan, so the hassle of filing for a "determination" letter is not
                       required. Opening an account for most pension plans shouldn't take more than a few
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                       Unless you have complex needs, retirement plans can be very economical. For
                       instance, Vanguard will set up a profit sharing plan for you with their funds that will allow   Management Consulting
                       you to defer up to 25% of your net income (with a limit of $42,000 in 2006) for no              News, a publication of
                       additional administration or custody fees. At the end of the year, they will send you all       MindShare Consulting,
                       the information you need to file the required IRS form 5500. Alternatively, you can use
                       TD Waterhouse or Fidelity Brokerage to open up the entire universe of investment                LLC. The editor is Michael
                       choices.                                                                                        McLaughlin, a principal
                                                                                                                       with Deloitte Consulting,
                       The variety of plans to choose from is mind-numbing and includes IRA, Roth IRA,
                       SEP-IRA, Simple IRA, 401(k), Roth 401(k), profit sharing, money purchase pension                LLP in San Francisco, and
                       plan, and defined benefit plan. If you find the benefits and features of the options            co-author of Guerrilla
                       confusing, the Department of Labor publishes a concise table comparing plans at:                Marketing for Consultants.

                       The 401(k) has two neat properties that are certainly worth considering: First, when you

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How to be a "Perfect Consultant" from EntryPoint                                               file:///C:/Documents%20and%20Settings/JMathe/Desktop/EPCPC/2006...

                       are more than 50 years old, you can make an additional $5000 a year "catch up"                 How to Ensure You Keep
                       contribution to your plan. Next, as of January 1, 2006, you can make Roth contributions
                       to your plan. While these get no current deductions, the funds can later be withdrawn
                                                                                                                      Receiving this Newsletter
                       tax free, and they are never subject to the minimum distribution rules. If you expect to
                       be in a higher income bracket later, or if you predict tax rates in general will go up, this   Please add
                       is an especially good way to leverage the tax code.                                  
                                                                                                                      to your contact list or address
                       With all those choices available, how should you decide which one to select? A good            book in your email application to
                       starting point is to determine how much you can save comfortably for your retirement           ensure that our email is not
                       goal, and then pick the least cumbersome plan that allows for that level of savings. As        blocked by any (SPAM) filters you
                       in many other facets of life, simple is best.                                                  may have.

                       If you are older, behind in your retirement savings, and would like to sock away lots of
                       your income, consider defined benefit plans. While large corporations are terminating
                       their plans en mass, small employers are taking advantage of the ability to shelter
                       significant amounts of income for their highly compensated principals. For instance, we
                       just designed a single-participant plan for a self-employed 55-year old
                       physician/consultant that allowed him to defer just over $162,000 a year for the next 10

                       Don't get bogged down in minutia. The overwhelming issue is not the fine points of
                       difference between pension plans, but whether or not you are saving enough so that you
                       can live with a certain amount of class and comfort later in life.

                       Unless you are very confident of your investment skills, it makes sense to utilize an
                       investment advisor to tend your nest egg. Just make sure you avoid
                       commission-based brokers and stick with professional-fee-only advisors so that you
                       get objective advice. For a match to qualified professional-fee-only advisors, check
              or The small additional cost will be well worth

                       Frank Armstrong III, CFP, AIF, is the founder and principal of Investor Solutions, Inc. and
                       the author of The Informed Investor: A Hype-Free Guide to Constructing a Sound
                       Financial Portfolio. Find out more about Armstrong and his services at

                       Coming Up In Future Editions ...

                                Be Accessible
                                The Law of 250: How to Become the World's Best
                                Mediocrity is the Kiss of Death
                                Blog Business Summit

                      phone: (216) 674-9068

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                    EntryPoint Consulting, LLC | 4700 Rockside Road | Suite 625 | Cleveland | OH | 44131

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