Cash Balance Plan: A Success Story

The case of the real estate broker and lasting success

Plan Sponsor Scenario

The owner of a family real estate business was nervous to set up a cash balance plan due to the high, consistent profit patterns required and fear of the future unknowns. He was unsure about the large contribution commitment and didn’t think he’d be able to maintain the plan for several years.

EGPS Action and Outcome

The EGPS team developed a plan illustration for the business owner, letting him know that by establishing a cash balance plan, he could save over six figures in current-year taxes.  Although hesitant, the business owner decided to establish the plan, thinking he would only be able to maintain the plan for a few years. Seven years later, he’s had wild success and is able to continue funding the plan. He recently reached out to thank the EGPS team for suggesting a cash balance plan and giving him the nudge he needed to set him up for a successful retirement.  

Key Learnings

Cash balance plans yield great returns for business owners and their employees, but can be nerve-wracking to establish. Having a consultative TPA to run a detailed illustration and answer any questions clients have can help. An EGPS plan consultant will let clients know if a cash balance plan would be a good fit for their business, either providing the necessary nudge to help them reap the benefits or determining if another option might be a better fit for the firm.

Interested in potentially setting up a cash balance plan with EGPS? Fill out this short form and we’ll provide you with a proposal.

Interested in simply learning more about cash balance plans? Complete the form below and we’ll send you additional resources regarding these plans.

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About the author

Regional Vice President, Sales & Consulting

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