W E A L T H P R I M E . C O M

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RETIREMENT &TAX PLANNING SOLUTIONS

FOR VENTURE CAPITALISTSAND THEIR START-UPS

THE STRUGGLE OF MOST START-UPSAs a Silicon Valley firm who has worked with over 100 venture capitalist (VC) and private equity firms, our experience has shown commonalities in where starts-ups struggle most.

They struggle with:

• Not knowing how to properly reward its founders, executives, partners, and consultants.• A lack of strategy in retaining top talent to prevent them from seeking other opportunities.• No advanced support for mitigating tax risk.

OUR EXPERTISE TO SOLVE THESE PROBLEMS

WealthPRIME™ has worked with venture capitalists and private equity firms for the past 30 years and specializes in providing sophisticated retirement planning and wealth building strategies.

We help businesses and entrepreneurs reduce their taxes, grow their wealth, generate dry powder through Roth vehicles, smartly invest in alternative assets, and live on the tax-advantaged earnings.

This is achieved through a complex strategy of layering retirement plan vehicles such as 401(k) plans, profit sharing plans, and in particular, cash balance plans, (also known as the COMBO-K®) to allow for maximized plan contributions and optimized tax planning.

Our services stand above the rest and can meet the unique needs of high-income earners in three distinct ways:

1. Providing the ability to invest in private company stock via our Roth 401(k) plans for a tax-free exit, over and above the Qualified Small Business Stock Election (QSBS) limit of $10 million.

2. Understanding the do’s and don’ts when it comes to which funds can be invested into without triggering prohibited transactions.

3. Allowing VCs to self-direct into traditional or alternative asset classes inside their retirement plans. Our clients are able to contribute between $100,000 - $250,000 per year in our COMBO-K® vehicles.

USING CASH BALANCE PLANS AS A RETIREMENT STRATEGY FOR START-UPSThe 401(k) PlanOne of the most popular ways for employers and employees to receive tax deductions and save for retirement is through a 401(k) plan. They can defer income tax on up to $19,000 (2019) either in traditional or after tax ROTH assets, and on what are known as catch-up contributions (available if you are over age 50). Income tax isn’t due on pre-tax contributions until the money is withdrawn.

The Downside of 401(k) PlansAs 401(k) and profit sharing plans can offer help to allow for larger retirement savings, they do have drawbacks, specifically on the limited amounts that can be contributed towards retirement. In addition, 401(k) plans can fluctuate due to market volatility and their management is largely the responsibility of the participant.

The Cash Balance PlanCash balance plans can help high-net-worth individuals realize tax deductions and savings rates up to 4x greater than a 401(k) plan alone. And business owners can contribute hundreds of thousands of dollars to their retirement each year–experiencing significant tax benefits, as retirement contributions are tax deductible.

ADDITIONAL BENEFITS OF CASH BALANCE PLANS INCLUDE:

• Asset protection from creditors

• Accelerated retirement savings

• Flexibility and portability (e.g., rollover availability into an IRA or other qualified retirement plan.)

In the retirement example in chart A above, a business owner with employees is able to contribute over $150,000 more towards his retirement as compared to only $19,000 allowed in a 401(k) plan, and $37,000 allowed in a profit sharing plan.

In the retirement example in chart B above, a business owner with employees is able to accumulate nearly $4.5 million after 15 years of making contributions to their cash balance plan as compared to only $409,993 in a 401(k) plan, and $1,208,400 with a 401(k) and profit sharing plan.

CHART A CHART B

$150,000

$125,000

$100,000

$75,000

$50,000

$25,000

$0

$175,000

$151,900

$19,000

401(k) Plan Profit Sharing Plan Cash Balance Plan

MAXIMUM COMBINED 401(K) PLAN, PROFIT SHARING PLAN AND CASH BALANCE PLAN CONTRIBUTIONS

$207,900 RETIREMENT PLAN CONTRIBUTIONS

$200,000

$37,000

DEMONSTRATION FOR EMPLOYER WITH EMPLOYEES

THE POWER OF THE COMBO-K®

401(k) Plan Profit Sharing Plan Cash Balance Plan

$0

$900,000

$1,800,000

$2,700,000

$3,600,000

$4,500,000

After 15 Years of Retirement Plan Contributions

401(k) $19,000 + Profit Sharing $37,000

+ Cash Balance $151,900 = $207,900 annually

401(k) $19,000

= $56,000 annually

401(k) $19,000 annually

$409,993

$4,486,183

$1,208,400

+ Profit Sharing $37,000

DEMONSTRATION FOR EMPLOYER WITH EMPLOYEES

WEALTHPRIME GIVES YOUR CLIENTS THE FREEDOM TO:

• Self-direct their assets into traditional stock, bonds, cash, and non-standard assets such as real property, life insurance, or private company stock. • Invest their newly found wealth into either traditional or alternative assets so they can decide if they wish to use the services of a financial advisor. • Select a Roth 401(k) option where they may invest in the next unicorn stock and realize substantial wealth with a tax free exit.

EXTENSIVE ARRAY OF ASSET CLASSES & ETFs

LARGE-CAPEQUITY

MID-CAPEQUITY

SMALL-CAPEQUITY

DEVELOPED INTL. EQUITY

INTERMEDIATEFIXED INCOME

SHORT-TERMFIXED INCOME

HIGH YIELDFIXED INCOME

TARGET DATEFUNDS

STABLE VALUE /MONEY MARKET

WHEN IT COMES TO INVESTING,WE’RE THE MOST EXPERIENCED.WealthPRIME clients enjoy a vast array of investments from which

to choose from including over 25,000 mutual funds, to find the right

mix for their retirement plan giving them the best chance for success.

About WealthPRIME

WealthPRIME is a retirement plan solution that offers high-net-worth individuals and small business owners the ability to reduce taxes, build wealth, and self-direct their 401(k) assets into alternative investment options. The cornerstones of this retirement solution are a proprietary calculator and the cash balance plan.

This smart calculator generates a complimentary WEALTH REPORT that’s customized for each investor’s unique scenario and demographic profile, and estimates the amount of annual taxes an investor can save and the retirement balance they can accumulate over the course of 5, 10, and 15 years.

WealthPRIME has deep experience and actuarial knowledge, including Roth provisions, and is able to help clients reach the financial security and tax relief they deserve.

Request a Free WEALTH REPORT

This industry-leading calculator helps business owners determine how much they can invest and gives them a roadmap for wealth creation. Feel free to run a free WEALTH REPORT for yourself at:https://wealthprime.com

HEAR FROM OUR CLIENTSHere’s what some of our satisfied clients have to say:

We have been working with WealthPRIME since 2013. Our venture capital firm was investigating pension and tax advantaged plans for our team’s future. In our case, office staff retirement savings needs and the challenges for deferred partner earnings made for a complex approach. Dan and team helped us navigate the decisions needed, structure our plans, and project how the overall platform would benefit us. Over the years, the plan has delivered on our expectations and Dan’s team has continued to keep us within regulations and consult on future opportunities as our team composition changes. I recommend Dan as an expert partner in administering retirement and deferred benefit programs.

– Randy Hawks, Managing Director, Claremont Creek Ventures

I have worked closely with Dan Harding for about two years. The Thiel Capital/Thiel Macro 401(k) plan I oversee is incredibly complex. Most of the C-level officers participate in alternative investments inside their 401(k) and ROTH 401(k) accounts, and Dan’s product offering, the Combo-K, is way ahead of its time and unlike anything else I’ve seen. Dan is there every step of the way to help put me in a position to succeed.

– Raoul Palo, Senior Associate, Finance Thiel Capital LLC

W E A L T H P R I M E . C O M

WealthPRIME does not provide tax or legal advice. WealthPRIME.com (the website) and the information and calculator provided on the website and this brochure are for informational purposes and are not intended as investment, business, legal or tax advice and WealthPRIME is not responsible for any investment, business, tax or legal recommendations or opinions of third parties cited on this website or in the information contained herein. For legal or tax advice concerning your situation, please consult your attorney or professional tax advisor. This material is designed as an educational tool. You should review any planned financial transactions or arrangements that may have tax, accounting, investing, or legal implications with your personal professional advisor. Clients and other interested parties must consult and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here. The material contained within is for informational purposes only and should not be considered investment advice. Any chart, graph, or formula should not be used by itself to make any investment decision. The information contained in this brochure has been obtained from sources WealthPRIME believes are reliable; however, WealthPRIME does not warrant the accuracy, completeness or timeliness of such information. WealthPRIME shall have no liability, contin-gent or otherwise, for the accuracy, completeness or timeliness of such information or for any decision made or action taken by you in reliance on such information. Any opinions expressed herein are subject to change without notice. WealthPRIME EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE WEBSITE AND BROCHURE AND THE INFORMATION CONTAINED IN IT, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, TITLE, NONINFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE, EVEN IF WealthPRIME HAS BEEN INFORMED OF SUCH PURPOSE. USE OF THE WEBSITE AND SUCH INFORMATION IS AT YOUR SOLE RISK. IN NO EVENT SHALL WealthPRIME, ANY OF ITS AFFILIATES, OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, SHAREHOLDERS, MEMBERS, AGENTS, REPRESENTATIVES, SERVICE PROVIDERS OR SUPPLIERS, BE LIABLE TO YOU OR ANYONE ELSE FOR ANY CONSEQUENTIAL, INCIDENTAL, PUNITIVE, SPECIAL, DIRECT OR INDIRECT DAMAGES (INCLUDING WITHOUT LIMITATION LOST PROFITS) THAT RESULT FROM THE USE OF THIS WEBSITE/BROCHURE OR ANY OF SUCH INFORMATION. Source: Life expectancy - https://personal.vanguard.com • Source: Retirement income deficit - http://www.pensionrights.org/ • Source: Healthcare costs in retirement - https://www.fidelity.com

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