Case Studies

A 67 year old dentist goes from almost no savings for retirement to retiring with over $1,000,000 in only 7 years.

A 67 year old dentist attended a PFS lecture at the 2001 IDA summer meeting. With virtually no significant retirement savings (about $59,000 in an IRA, which he was funding at $2,000 a year) he felt “hopeless” about a quality retirement. The PFS Analysis revealed significant structural deficiencies in his practice/business. The deficiencies were cured, the practice incorporated, the POB rented from him to the dental corporation, a retirement plan installed. PFS sold his practice at age 75 and, now 7 years later, the client enjoys his winters in Florida and summers at home in Indiana.

A young dentist was the victim of a fraudulent sale and was on the hook for $900,000 with the prospect of bankruptcy as the recommended solution by his attorneys.

PFS was asked to assist in the situation and created an alternative solution which would preserve the credit record of the dentist, recover substantial amounts of the fraudulent sale and eliminate the bank debt. In addition PFS found a suitable practice for the client and arranged financing. Two years after the fraudulent sale, the issue was resolved to the satisfaction of the bank and client.

A 57 year old orthodontist utilized PFS to assist in his transition and retirement planning.

An associate was found and hired. The transition plan was in place and received the approval of the associate and her advisors. The structure of the sale projected a tax burden of 12% to 15% on the sale proceeds. Five years after the sale, the client called PFS to report that the actual tax burden on the proceeds was 9.1%. The purchase was 100% deductible to the buyer.

A 46 year old endodontist, working out of a 750 sq ft. rental office, retained PFS to create a scenario where he could own his own Professional Office Building, bring in an associate, grow the practice and eventually retire to a life of travel and skiing.

The PFS analysis showed the client how to accomplish his goals without the substantial expense of building an office building. Appropriate space was located and leased. A year later an associate was hired and two years later purchased a 50% interest in the practice. Three years later a second associate was hired and a year after that associate purchased a one third interest. The PFS plan allowed the client to save 100% of the sale proceeds in a deferred tax, retirement account. PFS found a retiring military endodontist to purchase the client’s one-third interest.

A 45 year old endodontist in the southwest was involved in a unsatisfactory partnership, burdened by high taxes and unsatisfactory tax burden.

PFS assisted in the termination of the partnership, established an independent practice, purchased his own professional office building and set up a strong pension plan. PFS assisted in finding and documenting an associate relationship. The associate then purchased the practice and retained the former owner as an independent contractor (corporate-to-corporate relationship) which allowed him to save 100% of his earnings in a pension plan. The client fully retired at age 64 and spends his time with family, grandchildren, fishing in exotic locations around the world and skiing.

A forty three year old oral surgeon with a $130,000 income tax bill and $30,000 in annual pension savings was on track to retire at 65.

A forty three year old oral surgeon with a $130,000 income tax bill and $30,000 in annual pension savings was on track to retire at 65. The PFS program analyzed his circumstances and found he could save $150,000 per year and that cut his tax burden to $30,000. He retired at age 49. Sadly, the client died of cancer at age 69. The PFS plan gave the client an extra 16 years of retirement. When the doctors CPA asked why he was retaining PFS, he responded, “They can cut my taxes and increase my savings”. The CPA responded, “Doc, we can do that.” And the client asked “why didn’t you” and the CPA said “we didn’t know you minded paying the taxes”

A 32 year old general dentist was caught in the “cycle of poverty”.

The PFS analysis discovered a series of loans taken in April over a period of 3 years. When asked why the loans, the client responded they were to pay taxes on his income. The analysis showed the doctor how to incorporate, rearrange his cash flow, increase his savings for retirement. He followed the recommendations and PFS sold his practice at age 58. He built a $2 million mountain retreat and is enjoying his very active retirement with his wife.

A physician, specializing in ophthalmology, engaged PFS at age 43 to assist in organizing the business side of his practice and structure to maximize the opportunity for retirement.

15 years later, PFS sold the practice and the client has enjoyed 18 years of quality retirement and is looking forward to many, many more.

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