HIGH-EARNING SOLOPRENEURS.
Being self-employed offers the freedom to pursue your passions and the ability to maximize your lifetime earnings. However, it also brings various financial challenges through each stage of progression that can be overwhelming and time consuming to manage alone. As a wealth advisor who specializes in self-employed people, we understand your challenges and will be there to help get the important decisions right the first time.
lET'S LOOK AT MARCUS, A SAMPLE CASE STUDY. MARCUS LAUNCHES MARCUS TECH CONSULTING AND SEES REVENUE SURGE.
Foundation & Acceleration Phase
“I’m finally earning real money. How do I keep more of it and still grow?”
How we guide Marcus
- Recast the entity structure to capture every available deduction and reduce payroll-tax drag.
- Layer the maximum allowable contributions into a Solo 401(k) plus a “mega backdoor” option and a brokerage account for surplus cash.
- Wrap the business in key-person life and own-occupation disability coverage so one accident can’t unravel the business and household.
- Create a “personal pension” strategy, directing excess cash flow into tax-advantaged vehicles that can later convert to income.
Outcome
Marcus cuts his effective tax bite, boosts liquid wealth quickly, and sleeps better knowing one mishap won’t derail his company or his family.
GROWTH & ALIGNMENT PHASE
“The business is thriving. Am I maximizing its eventual payout?”
With revenue stable and sale consideration’s present, Marcus becomes the bottleneck.
HOW WE GUIDE MARCUS
- Model multiple exit paths, outright sale, leadership succession, or cash-balance overlay so he knows precisely what each would mean for lifestyle and legacy.
- Install a cash balance or defined-benefit plan to accelerate pre-tax savings and reduce current income pressure.
- Transfer a strategic slice of equity, shifting future appreciation outside his estate.
- Design a deferred-comp plan that triggers guaranteed payouts post-sale regardless of the buyer.
OUTCOME
Marcus enters negotiations confident about after-tax proceeds and has levers in place to pull cash out on his terms while locking in long-term optionality.
independence & distribution phase
“I don’t clock in anymore, but I still want predictable paydays.”
Marcus exits the business and pivots from builder to steward.
HOW WE GUIDE MARCUS
- Re-engineer the balance sheet from concentrated and illiquid to a blend of liquid income streams, growth assets, and contingency reserves.
- Execute annual Roth conversions up to the top of his target bracket, smoothing taxes before required distributions kick in.
- Place low-basis assets into a charitable remainder trust, turning embedded gains into a lifetime income stream and an immediate deduction.
- Add longevity hedges so late life spending power is fortified without sacrificing early flexibility.
OUTCOME
Marcus secures the lifestyle he wants, keeps Medicare premiums in check, and stress tests the portfolio for market, tax, and health-care shocks.
LEGACY PHASE
“My capital should serve the next generation and the causes I care about.”
Purpose replaces profits as Marcus’s primary metric.
HOW WE GUIDE MARCUS
- Use remaining estate tax exemptions in a Spousal Lifetime Access or Dynasty Trust before scheduled sunset dates.
- Establish an Irrevocable Life Insurance Trust (ILIT) to move life insurance death benefit outside the estate while providing tax-free liquidity for heirs.
Contribute appreciated securities to a donor-advised fund giving his children a seat at the philanthropic table. - Craft a family charter outlining values, decision rights, and investment philosophy so heirs inherit more than money.
- Provide ongoing oversight so trustee continuity and investment governance remain intact across generations.
OUTCOME
Estate tax exposure plummets, charitable impact becomes intentional, and heirs receive a roadmap. Not just a checkbook.
If you’re a high-earning solopreneur that’s intentional about turning today’s cash flow into tomorrow’s legacy, let’s develop a strategy worthy of the business you’ve built.