At the 18th Annual Ambulatory Surgery Centers Conference in Chicago on Oct. 27, Ken Crabb of RPT and Steve Schaumberger of JR Katz explained the idea behind restricted property trust and how the investment strategy could pay dividends for physicians.
Restricted property trust is a retirement strategy that provides permanent, income-tax-free death benefit protection through tax advantage funding, Mr. Schaumberger said. If a physician has his or her own practice, he or she can do invest for themselves and does not have to include employees. However, Mr. Crabb said there are some stipulations.
"In order to achieve investment results, you have to lock money in for at least five years," Mr. Crabb said. "There's no getting your cake and having it too with the internal tax code." Locking in funds for five years is the minimum, and he added that a longer commitment produces higher yields.
Physicians who participate in this retirement strategy, which Mr. Schaumberger said is a conservative funding vehicle, could yield a return of 8 to 9 percent over 10 years. Mr. Crabb added that this also provides a low-cost safety net for a physician's beneficiaries should a sudden death occur. "This is not a home-run strategy," Mr. Crabb said. "This is an anchor strategy, but there are large death benefits."
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Restricted property trust is a retirement strategy that provides permanent, income-tax-free death benefit protection through tax advantage funding, Mr. Schaumberger said. If a physician has his or her own practice, he or she can do invest for themselves and does not have to include employees. However, Mr. Crabb said there are some stipulations.
"In order to achieve investment results, you have to lock money in for at least five years," Mr. Crabb said. "There's no getting your cake and having it too with the internal tax code." Locking in funds for five years is the minimum, and he added that a longer commitment produces higher yields.
Physicians who participate in this retirement strategy, which Mr. Schaumberger said is a conservative funding vehicle, could yield a return of 8 to 9 percent over 10 years. Mr. Crabb added that this also provides a low-cost safety net for a physician's beneficiaries should a sudden death occur. "This is not a home-run strategy," Mr. Crabb said. "This is an anchor strategy, but there are large death benefits."
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