Layering Liability Protection for Retirement Assets: The CA Section 704 Plan™

Your retirement assets not held in a qualified plan are subject to the claims of your creditors. A judgement against you creates a liability for you to pay. California law provides a way to reduce or eliminate the effect of this liability on your retirement assets. The CA Section 704 Plan™ I provide uses this law to its fullest effect.

Your retirement assets are subject to tax liability.If held in a qualified plan, the liability is at payout – any payout… retirement income, death, disability, etc. If not held in a qualified plan, then only if the assets are managed in a tax-exempt portfolio do you avoid the constant erosion of taxes. Holding these assets in tax-free municipals mitigates taxation, but at the cost of total return and may be subject to default risk. The CA Section 704 Plan™ I provide has tax-free options that can keep you fully invested and yet provide a tax-free growth and distribution environment.

Your retirement assets are subject to divorce liability risk, both your qualified plan assets and those not held in qualified plans. Should you want to protect against this contingency The CA Section 704 Plan™ I provide can help protect those assets.

Death, disability, and extended care create financial liabilities on you and your family. A properly designed The CA Section 704 Plan™ that I provide can account for these possibilities and plan for them unlike most other retirement accumulation and distribution structures.

My practice is advising the public and their advisors on the use of The CA Section 704 Plan™ among other structures to enhance traditional financial and estate planning. Give me a call at 619-876-6343 or email This email address is being protected from spambots. You need JavaScript enabled to view it. for more information.

Thank you.

David F. Smith, Ph.D., CFP^®, CLU^®