5 Ways Lawyers Can Maximize Their Wealth By Deferring Fees

Leif Lundberg, LL.M and Ben Eisler, JurisPrudent Deferral Solutions

Takeaways

1. Defer compensation like Fortune 500 executives do, so your money grows faster.
2. Tie your fee to the returns of investments that you select – stocks, bonds, real estate, etc.
3. Gain access to low-interest loans, as needed, to fund cases (currently 3-4%).
4. Use “golden handcuffs” to retain key associates, so if they leave too soon their deferred bonus comes back to the firm.
5. Do this with the same benefits and protections offered to Fortune 500 CEOs.

A few months ago, we met a trial attorney in Florida. He was like a lot of people reading this post; well-respected, successful, hardworking. He had just settled a big case for his client, and they were a couple of weeks away from finalizing the release. He was excited about the result, but also frustrated that he had to pay a ton in taxes, when some people, like big wigs at Fortune 500 companies for example, can defer their compensation and taxes, effectively earning interest on the government’s money.

He looked at structuring his fees with an annuity – one way to defer taxes. But he didn’t like that annuities are conservative investments and with a lower interest rate than market based investments. And just as he was about to pay taxes on his fee, Synergy told him about a product provided by JurisPrudent Deferral Solutions. We explained how our program allows you to defer taxes and tie your fee to the returns of a customized portfolio of investments that you (or your financial advisor) select – stocks, bonds, real estate, etc. In that sense it’s a lot like a 401(k) plan for trial lawyers. Though like deferred compensation for corporate executives, there is no limit on how much you can defer.

We also explained how in addition to reducing your tax burden and increasing your wealth accumulation, deferring fees can increase your access to cash to fund cases, because as we get to know your firm, our company will make loans at very low rates – currently 3-4% interest. And we shared how he could use deferred fees as “golden handcuffs” to retain key associates, so if they leave too soon their deferred bonus comes back to the firm.

So ultimately this attorney did his due diligence and decided to defer a large portion of his fee and take some in cash to cover expenses. As a result, he avoided a big tax hit without sacrificing his investment returns. He is now earning interest on the government’s money and has access to low-interest loans.

You may be thinking how do the guys at JurisPrudent know so much about deferred compensation? Combined, our leadership team has more than 100 years of experience in this industry. Our parent company administers almost two billion dollars in deferred compensation plans for some of the largest companies in the country – current clients include Microsoft, Cisco, and Bank of New York Mellon. Our program is administered by Newport Group, the country’s largest administrator of deferred compensation plans for corporate executives, and Bank of New York Mellon is the trustee and custodian of the assets backing the program. No other fee deferral program provides this level of safety and service.

So please consider deferring your fees with us. Synergy is a strategic partner with JurisPrudent and works daily with their highly skilled team to create cutting edge solutions for lawyers looking to pay less in taxes. Visit www.structuredfees.com for more info.