056: Supercharged Cash Balance Plans: A Powerful Tax Control Tool for Business Owners with Bruce Gendein

In this podcast episode, I welcome Bruce Gendein, a pension consultant with McHenry Advisors, to discuss the complex world of pension consulting and the critical role of cash balance plans for business owners.

This episode explores Bruce's extensive background and the evolution of pension consulting, highlighting the unique benefits of cash balance plans in tax planning and retirement savings.

Bruce's Journey: From Actuarial Training to Pension Consulting

Career Path: Originally trained to be an actuary, Bruce transitioned through various roles in the computer business and medical facilities management before finding his niche in the pension business.Professional Achievements: Over four decades, he has built and sold multiple actuarial, consulting, and third-party pension administration firms. He now works exclusively with McHenry Advisors, administering approximately 2,200 pension plans with a team of nine actuaries.

McHenry Advisors and The Importance of Cash Balance Plans

Consulting Services: McHenry Advisors offers continuity and stability for financial advisors and their clients by ensuring a seamless transition and consistent service through a large, experienced staff.Virtual Family Office (VFO) Expertise: Bruce acts as a VFO expert, collaborating with financial advisors and accountants to provide specialized knowledge and support in pension consulting and tax planning.Defined Benefit vs. Defined Contribution Plans: Bruce explains the differences between 401k profit-sharing plans (defined contribution) and cash balance plans (defined benefit), emphasizing the advantages for business owners.Target Audience: Successful business owners who are making more than they need to live on, dislike paying taxes, and want to save a significant amount for retirement quickly.

Elite Resource Team (ERT) and the Virtual Family Office Model

Collaborative Approach: ERT's model fosters collaboration among financial advisors, accountants, and specialized experts like Bruce, ensuring comprehensive and effective planning for clients.Benefits of the VFO: Financial advisors can leverage the expertise of seasoned professionals, enhancing their credibility and providing clients with top-notch service without needing to master every aspect themselves.

Key Takeaways and Future Directions

Flexibility and Tax Benefits: Bruce highlights the flexibility of pension plans, their potential for significant tax savings, and the growing importance of tax-deductible strategies in light of increasing national debt.Owner Benefits: Adding a pension plan to a 401k provides substantial benefits for business owners, making it an essential component of a well-rounded retirement strategy.Creative Funding Approaches: Utilizing life insurance contracts within pension plans can provide a mix of taxable and tax-free future income, maximizing after-tax benefits.

About our Guest:
Bruce Gendein, a pension consultant with McHenry Advisors

You can learn more about his work at:
LinkedIn:  https://www.linkedin.com/in/brucegendein/

About Your Host:  Paul G. McManus is an accomplished author and expert in helping financial professionals grow their businesses. With over eight years of experience working exclusively with financial professionals, Paul has helped his clients generate tens of millions of dollars in fees and commissions.

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