Section 79 Plans
Like we did with IRA Rescue plans, we will defer to industry watch dog/crusader, Roccy DeFrancesco, JD, to tell you why these plans are NO GOOD!
For a full explanation, you can go to Roccy’s consumer protection web-site at www.section79plans.net.
What are Section 79 Plans?
1) The plan is only 30-40% deductible not 100% to the business owner who benefits.
2) You have to lie to the employees to implement the plan (if you told them the truth it would be far too expensive to implement).
3) Clients would be better off financially by not implementing these plans. (They are sold in a vacuum and are not compared to anything else. If you compare using a Section 79 Plan to not using one, the client would have more money after tax in retirement by not implementing a plan).
4) You have to be a C-Corporation to use it.
Biggest piece of junk policy being sold today
Would you ever go up to a client and tell them to buy the biggest piece of junk CVL policy in the market today? If you are selling Section 79 Plans, that’s essentially what you are doing.
Section 79 Plan policies are designed to be terrible cash accumulation tools. Why? Because, if you use a “good” CVL policy, the plan would be less than 10% deductible; and no one would bother with them.
We could go on and on about these plans, but again, we’ll simply refer you to Roccy’s website www.section79plans.net.
If you have had a client sold or pitched one of these plans, feel free to contact Roccy at firstname.lastname@example.org for help.