Podcast - Sage Wealth Strategy

At Sage Wealth Strategy, we make planning for your financial future simple, practical, and inspiring. On the Sage Wealth Podcast, we explore unconventional strategies, alternative solutions, and proven approaches to help you build lasting wealth that spans generations. Each episode brings you insights from years of hands-on experience, giving you the tools and mindset to create abundance and live a truly fulfilling life. Tune in, and start building your warehouse of wealth—one conversation at a time.

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Your Business Owes You a Pension

Your business has been funding the IRS for years. This episode is about how it starts funding you instead.

In this episode of the Wade Borth Podcast, Wade sits down with Rohit Punyani of The Owner's Asset to go deep on who a cash balance plan works for, why the older you are the bigger the advantage, and how a seasoned whole life policy can turn a required minimum distribution into a source of non-taxable cash flow.

Wade Borth – Sage Wealth Strategy

Ready to take control of your financial future? Using properly structured whole life insurance, Wade Borth is dedicated to teaching how to establish the right strategy to create generational wealth. In this podcast, Wade shares the tools for understanding and the clarity of how to to do this for your family. This show is all about sharing that sage wisdom to help others build strong financial futures.

Summary

Most business owners know they should be saving for retirement. What they don’t know is how much the tax code has stacked the deck in their favor. In this episode, Wade and Rohit Punyani of The Owner’s Asset dig into who a cash balance plan actually works for, why older business owners have the biggest advantage, and how to run a pension and a 401(k) together for maximum effect.

Rohit also breaks down one of the most underused strategies in retirement planning: depositing required minimum distributions into a seasoned whole life policy to convert taxable income into accessible, non-taxable cash flow. If your business has been funding the IRS instead of your future, this conversation is for you.

Key Takeaways

The ideal candidate: a stable business with consistent taxable income, quarterly estimated payments above $20,000 to $30,000 per quarter, and at least some active K-1, S-corp, or 1099 income.
After age 52 or 53, the IRS tables allow deductions that can exceed your active income. A 60-year-old with $100,000 in side income may be able to deduct $250,000.
A pension and a 401(k) can and should coexist. The 401(k) stays in the market for growth. The pension funds your guaranteed safety-first income.
The pension contribution is a top-line deduction. A $200,000 contribution on $1 million in revenue means the IRS taxes you on $800,000, and it can drop you into a lower marginal bracket.
Required minimum distributions should never be spent directly. Depositing an RMD into a seasoned whole life policy and drawing on the policy’s cash value can convert a $40,000 taxable distribution into $100,000 or more of accessible, non-taxable cash flow.

Links and Resources

sagewealthstrategy.com

Keywords

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Episode Highlights

[00:04:35 – 00:05:46] Rohit defines the ideal candidate in human terms: a stable business writing quarterly estimated tax payments above $20,000 to $30,000 that could instead be flowing into a pension.
[00:07:20 – 00:08:36] The age advantage: after 52 or 53, you can deduct more than your active income. A 60-year-old with $100,000 in side income can potentially deduct $250,000 and erase a tax bill entirely.
[00:11:05 – 00:11:28] The 401(k) and pension should coexist. Stay in the markets with the 401(k). Use the pension to buy your safety-first guaranteed income.
[00:13:48 – 00:14:53] Top-line deduction explained: a $200,000 contribution on $1,000,000 in revenue means the IRS taxes you on $800,000, and it can push you into a lower marginal tax bracket.
[00:17:56 – 00:19:20] The catch-up concept: after years of building a business without contributing to retirement, a cash balance plan lets you redirect $200,000 to $300,000 a year and rebuild what was missed.
[00:21:29 – 00:25:43] The RMD strategy: take a $40,000 distribution, deposit it into a seasoned whole life policy, use the policy’s 3x to 4x release to pay taxes and keep the rest, turning $22,000 of after-tax income into $102,000 of cash flow.