TRANSCRIPT

The innovative Rainmaker Plan® from Benetrends was the first retirement and business funding plan created for small business. Benetrends originated 401(k)/IRA rollover funding helping over 17,000 entrepreneurs in the last 35+ years, with our revolutionary Rainmaker Plan®. The Rainmaker® allows an entrepreneur to use their qualified retirement plan to purchase, or recapitalize a business or franchise, tax-deferred and penalty-free.

Rainmaker Plans® are used by entrepreneurs to start new ventures, purchase franchises or existing businesses, expand or add locations to current organizations, and to provide additional working capital for current operations.

The process begins with the establishment of a new corporation. As part of our services, Benetrends takes care of the set-up of this new C Corporation using the proper legal structure that supports the establishment and operation of the company’s qualified retirement plan.

Next, Benetrends designs a retirement plan for the new company. Benetrends will design this plan using specific features that are right for you and your business. These features will be determined during an up-front needs assessment session with an expert Retirement Plan Analyst from Benetrends.

The new company then adopts the qualified retirement plan. The company’s new retirement plan is designed to allow rollovers from most other types of retirement plans. This allows you and your company’s employees the option to rollover current retirement funds into the new retirement plan tax-deferred and penalty-free. You and the other plan participants that have rollover money then direct how these funds are to be invested for your own individual accounts.

The Rainmaker Plan® design allows rollover contributions (and only rollover contributions) to be invested in the stock of the new company that sponsors the retirement plan. If you or other plan participants direct the investment of your rollover contribution in company stock, the plan then purchases stock in the new company. The company stock purchased by the plan is credited to the individual accounts of the plan participants per their investment decision. Remember, only rollover money can be invested in company stock.

For example, suppose you have $250,000 in an existing retirement plan and you require $150,000 to purchase a new business. Using the Rainmaker® process, you can roll the entire $250,000 into your new company’s retirement plan. You would then direct $150,000 of the rollover to be invested in company stock.

The remaining $100,000 in the plan can be invested in other stocks, bonds, or mutual funds, depending on the investment options adopted by your plan. Your new company ends up with $150,000 in cash that it can use for any legitimate business purpose, including payroll, rent, marketing, supplies, salaries, furniture and fixtures, and more. The plan ends up with company stock valued at $150,000 which is credited to the accounts of the individual who directed an investment in company stock from their rollover monies.

You and your employees will utilize the new plan to build personal wealth, plan for your retirement, and build wealth for the company. The retirement planning experts at Benetrends will help you determine how to get the maximum benefit from your plan and the best way to achieve your long-term goals.

Just like other qualified plans, rollovers, wage deferrals or contributions can be invested in other investment options such as stocks, bonds and mutual funds giving plan participants the ability to diversify their portfolios.

Although Benetrends does not provide investment advice, you may use your own financial advisor to determine what other types of investments to offer through your company’s new plan, or you can enlist the services of one of Benetrends nationally-recognized partner firms.

If at some point you find you need additional funding for the company, you have the option to re-direct some or all of the $100,000 from the original rollover into additional company stock.

Benetrends will be doing more than you know to help you protect your assets and maximize your benefits. As you consider funding your business, the team at Benetrends will help you evaluate options other than the simple rollover process provided by many firms in this industry.

Depending upon your individual situation, it may be best for you to use a combination of business loans and retirement plan funds to start your business. These types of decisions have bearing on how quickly your business will arrive at break-even or profitability, or how great your debt expense will be. It’s our goal to help you use your retirement plan to succeed in business both now, and in the future.