Ringler Fee Deferral Advantage

RINGLER CHOICE SECURING YOUR FINANCIAL FUTURE

Creation of a supplemental retirement fund FEE DEFERRAL ALLOWS FOR:

PLANNING AHEAD TO WIN

Structuring your fees is a smart and secure way to leverage the money you earn today for better use tomorrow. In today’s fluctuating economy, fee deferral can provide you with either a hedge against risk or even a unique growth opportunity. At Ringler, we believe you should have options when deciding how to defer your fees. That’s why we created the Ringler Choice Attorney Fee Deferral Solution. Ringler Choice provides a variety of fixed and variable attorney fee deferral solutions. Our Settlement Consultants can help you choose a solution that is right for you. Tax Benefits Deferring fees may reduce your taxable income today By deferring income until later in life, you may be able to take advantage of a potentially lower tax rate. Taxes will not be incurred until you actually receive the annuity payments.

Substantial tax- deferral advantages Protection against inflation with potential cost of living adjustments Potential avoidance of the Alternative Minimum Tax Setting up payments to cover future expenses such as college education or mortgage payments A low-risk foundation for a diversified investment portfolio The ability to borrow funds after fees have been deferred in the event a short term need arises.

Flexibility Customize your payout according to your needs

What will you need in the future? Supplemental retirement income, payments for business overhead, your children’s college tuition, a second home, annual vacations... If you can dream it, we can help you achieve it.

Hassle-Free Planning With Long-Term Rewards The receipt of an annuity does not require a financial planner The annuity gives you freedom to put money aside and prevent the dissipation of large case payouts. The process is simple and the financial freedom that a fee structure can provide will pay off in the end.

For more information, contact your Ringler Consultant

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HOW IT WORKS

Case Fees: $ 200,000

Ringler Choice offers an objective survey of the marketplace to deliver the most comprehensive planning solution for you. Using an attorney fee deferral for all or part of the attorney fees associated with a case can be deferred pre-tax and paid over time. No taxes are paid on the attorney’s fees until the year in which the payment is actually received. In this way, spreading fees over several years avoids paying tax at a higher tax bracket and allows the money saved in taxes to be invested on a tax-deferred basis. Deferred attorney fees work very much like a non-qualified deferred compensation plan. At the time the case is settled, the federal and/ or state income taxes that would usually be paid on the attorney fees are deferred. When payments of the fees are eventually received, the entire amount distributed during that year is taxable for that tax year. Based upon a taxpayer’s federal tax bracket, there may be some distinct tax advantages to entering into this type of arrangement, as opposed to being taxed on the entire attorney fee in the year the fee was earned and investing it after-tax.

Ringler Choice ™ Structure

Lump Sum Payout

Amount Received After Taxes: $ 120,000

Amount Placed in Annuity : $ 200,000

Growth with Fixed Annuity (4%): $ 336,000

Growth with Variable Annuity (7%) $ 438,000

Growth if Invested at 4%: $ 201,600

Growth if Used Immediately $ 0

to equal a TAX-DEFERRED yield of:

Lower Risk Annuity

Higher Risk Annuity

4% 5% 6% 7%

you must earn a TAXABLE yield of:

2018 Federal Tax Return

Your Tax Bracket

Investment Yield

$ 38,700 - $ 82,500

Individual

22%

5.33% 6.67% 8.0% 9.33%

$ 77,400 - $ 165,000

Married - Joint

$ 38,700 - $ 82,500

Married - Separate

$ 82,500 - $ 157,500

Individual

24%

5.56% 6.94% 8.33% 9.72%

$ 165,000 - $ 315,000

Married - Joint

$ 82,500- $ 157,500

Married - Separate

$ 157,500 - $ 200,000

Individual

32%

5.97% 7.46% 8.96% 10.45%

$ 315,000 - $ 400,000

Married - Joint

$ 157,500 - $ 200,000

Married - Separate

$ 200,000 - $ 500,000

Individual

35%

6.15% 7.69% 9.23% 10.77%

$ 400,000 - $ 600,000 $ 200,000 - $ 300,000

Married - Joint

Married - Separate

For more information, contact your Ringler Consultant

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