Case Studies
A Flexible Savings and Tax Cutting Tool for Locum Tenens Physicians
The following case studies illustrate different scenarios in locum tenens physicians can use Defined Benefit plans to save tens of thousands in taxes each year while quickly amassing large retirement nest eggs. Defined Benefit plans are flexible enough to be used in a wide variety of situations. We will work with you to determine the most favorable and tax-efficient retirement plan structure for your specific circumstances.
Case Studies: Defined Benefit Plans in Action For Locum Tenens
Locum Tenens Physician, Solo Practitioner
Michael
Michael is a 50-year old locum tenens physician earning $350,000 annually.
Michael's Goal
Michael wants to retire comfortably in 10 years and travel extensively. Therefore, he would like to quickly build a large retirement account, while also reducing his annual tax bill. He has paid off his home and is able to put a considerable percentage of his earnings into a retirement plan.
Orion's Solution
After discussing his options with his Orion advisors, Michael decides to contribute $190,000 to a Defined Benefit plan and another $30,000 to a 401(k). This plan saves him tens of thousands in taxes every year and allows him to accumulate over $2 million for retirement.
Taxes Saved Annually
$77,000
DB Plan in 10 years
$2.5M
(Assumes contribution every year and 5% growth)
Jane & David
Jane and David both work as locum tenens physicians, earning about $600,000 annually.
Jane & David's Goal
Jane & David love what they do but they would like to retire in 10 years and they have not saved enough. They want to quickly build a substantial retirement fund so they can retire comfortably.
Orion's Solution
They decide that after their expenses, they can contribute a combined $280,000 per year to a DB plan. This saves them close to $100,000 in taxes per year and puts them on course to build retirement savings of roughly $3.7M.
Taxes Saved Annually
$98,000
DB Plan in 10 years
$3.7M
(Assumes contribution every year and 5% growth)
Anne
Anne, 57 works as a medical school professor, and also works part-time as a freelance physician. She typically earned $175,000 per year in freelance income. She is married and her husband is also a university professor.
Anne's Goal
Anne and her husband earn enough from their university salaries to fund their lifestyle so they would like to reduce the taxes they pay on Anne’s freelance income and boost their retirement savings. Anne would like to retire at 65.
Orion's Solution
Anne will contribute $125,000 of freelance income to a Defined Benefit plan. This will save her $44,000 in taxes on her freelance income every year and allow her to add $1.3M to retirement savings in 8 years.
Taxes Saved Annually
$44,000
DB Plan in 10 years
$1.3M
(Assumes contribution every year and 5% growth)
More Detail
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Tax Savings
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