Online Consulting Services
Working with a knowledgeable consultant can be expensive. Rates can run as high as $2,000 – $3,000 per day or more.
But often times, an industry expert is just what you need to solve a vexing problem at your business. A problem that
might not take a full day to explain or solve. An objective outsider with decades of printing experience might be able to
look at your situation and give you a solution in five minutes. The founders of Digital Printing Trends have come up
with an innovative solution to this problem: Online Consulting Services.
What Is Online Consulting?
Online Consulting allows you to pose questions and receive answers by telephone or ernail. You can choose to have a single
problem addressed over the course of one month for $295, or sign on for a full year of consultation (for either Digital
Technology or Sales Techniques) for only $75 per month.
How Does It Work?
Clients receive an eight-page confidential questionnaire to complete with information about their business. Your answers will
tell us what size shop you have, your equipment configuration, competitive environment, marketing efforts, personnel mix, and
so forth. You will also tell us what you see as your most pressing challenges – why you have chosen to bring in a consultant.
Your first month you receive two hours of our time – one hour studying your business and one hour working with you on the
phone, Subsequent months we will spend up to 30 minutes per month on the phone with you or reply to up to four questions
posed by ernail.
What Types of Questions Can I Ask?
Our consulting services break into two broad categories: Digital Technology and Sales Techniques. Within these categories
you can pose virtually any questions you may have. For example, if you choose to sign up for Digital Technology consulting with
Frank Felker, you can ask questions about file pre-flighting, software training, online job submission, digital equipment selec-
tion, direct-to-plate material, technical staff recruitment and retention – anything having to do with successfully managing the
growing digital side of your business, If you choose to work with Sean McArdle for Sales Techniques consulting you can
ask questions ranging from how to crack a particular account to prospecting techniques, compensation plans, using contact
management software, getting past voicemail, and supercharging your results, Virtually any question is fair game,
Who Willi Be Working With?
You will work directly with Frank Felker on Digital Questions and Sean McArdle on Sales Questions. You will never be handed
off to someone else, Sean McArdle is the $100 Million Printing Salesman who achieved that remarkable level of success not
once, but three years in a row working for Arcadia Graphics. Frank Felker is the former President of Print Shop 2000 and the
first chairman of the 2,600-member Digital Imaging Applications Network. Sean and Frank have over 45 years combined
printing industry experience and are full time speakers, trainers, consultants and publishers to the graphic arts industry.
How Can I Get Started?
Just give us a call at (703) 242-2404 and ask to become an Online Consulting Client. Tell us whether you need help in Digital
Technology or Sales and Marketing. We’ll send you the appropriate questionnaire. After you complete and return the question-
naire we will contact you to schedule your first telephone consultation. In subsequent months we will await your request
for help by phone or ernail. All requests will be replied to within two business days.
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21483,0);(0,0);(0,21500);(21483,21500)posrelh0posrelv0pib
Due to Time Limitations
Only The First 100 Clients
Can Be Accepted.
Please Don’t Delay.
703-242-2404
mgilill PnnHng Trends
Tracking the Latest in Printing Technology
and How to Sell It Profitably
360 Maple Avenue West • Suite F • Vienna, Virginia 22180
Case Study– Two
••••••••••••••••••••••••••••••••••••••
MR. & MRS. RALPH BAKER
:8;
.• f!IJJ–
Thinking beyond the nine dots
shapeType75fBehindDocument1pWrapPolygonVertices8;12;(21499,0);(18500,0);(18500,9384);(15539,9384);(15539,1514);(4789,1514);(4789,11655);(1089,11655);(1089,1514);(0,1514);(0,21496);(21499,21496)posrelh0posrelv0pib
ENHANCED
INCOME
TRUSTS
FAMILY
VALUES
TRUST
shapeType75fBehindDocument1pWrapPolygonVertices8;12;(9073,0);(0,0);(0,21490);(21499,21490);(21499,0);(19785,0);(19785,14545);(17370,14545);(17370,0);(12617,0);(12617,14760);(9073,14760)posrelh0posrelv0pib
M/MBAKER
RETIREES
IN 5 YEARS
JOE
BAKER
24 ~ CREATIVE PLANNING, INC.
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21499,0);(0,0);(0,21498);(21499,21498)posrelh0posrelv0pib
Case Study Two
••••••••••••••••••••••••••••••••••••••
MR. & MRS. RALPH BAKER
Thinking beyond the nine dots
CREATIVE PLANNING, INC. ~ 25
Case Study Two
••••••••••••••••••••••••••••••••••••••
Thinking beyond the nine dots
ENHANCED
INCOME
TRUSTS
(14) Benefit to
FAMILY
VALUES
TRUST
shapeType75fBehindDocument1pWrapPolygonVertices8;12;(21500,0);(18194,0);(18194,7127);(15247,7127);(15247,470);(7405,470);(7405,7003);(3981,7003);(3981,470);(0,470);(0,21498);(21500,21498)posrelh0posrelv0pib
MARITAL
TRUST
FAMILY
TRUST
$4.8M $4.8M $4.8M $4.8M $4.8M
!
(18) Annual Endowment
$2,500,000
LOCAL
CHARITIES
26 :=: CREATIVE PLANNING, INC.
CASH AND OTHER
ASSETS
•
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21498,0);(0,0);(0,21473);(21498,21473)posrelh0posrelv0pib
••••••••••••••••••••••••••••••••••••••
CASE STUDY CONTINUED …
CREATIVE PLANNING, INC. a=: 27
shapeType75fBehindDocument1pWrapPolygonVertices8;8;(21497,0);(0,0);(0,6323);(4612,6323);(4612,21495);(18234,21495);(18234,4632);(21497,4632)posrelh0posrelv0pib
Case
hree
MR. JOSEPH LOCKHART
“Making a Profit Giving it Away”
~ ...
~.·THINKING BEYOND ...
• • • • • • • • • • • • • •
MR. JOSEPH LOCKHART
THE SCENARIO
Joe is a 79-year-old widower. He has made his millions in real estate, gas and oil. He has accumulated a sub-
stantial family wealth of$15 million.
He hired the largest law firm in the major metropolitan area near where he lived to create an estate plan for him.
That firm recommended that his family pay the estate taxes of$8.25 million that would be due at his death by using
section #6166 of the IRS code, allowing them to “borrow” the money due on estate taxes from the IRS and then
pay it back with interest over the next 15 years. That meantthe IRS would collect from Joe’s heirs in taxes and
interest nearly $15 million.
That also meant that his daughter and three grandchildren would actually receive only $6.7 million of the $15
million family wealth, assuming the wealth would at least grow at the same rate as the interest on the IRS loan.
Joe had resigned himself to the factthat “Uncle Sugar,” as he called the Federal Government, was fmally going to
get his “pound of flesh” at his daughter’s and grandchildren’s expense. He was very upset about it, but what could
he do?
THE PROBLEMS
His family’s wealth was going to be absolutely devastated at his death.
Since his wife was already dead, all the taxes would be due upon his death.
OTHER CONSIDERATIONS
1. He once said that ifit weren’t for his daughter and grandchildren he would just give his entire wealth away
rather than have “Uncle Sugar” take it away from him and foolishly waste it.
“Uncle Sugar” was his least favorite charity.
Even with the small percentage ofhis family’s wealth that would end up going to his heirs, he was
concerned that they would “blow it” foolishly. He wanted to phase in their inheritances so that ifthey
wasted the first part ofthe inheritance, maybe, they would be wiser when the next chunk of money came to
them.
THE BOTTOM LINE CHALLENGE
Solve his massive estate tax problems.
Help design a master Family Wealth Plan that will not “ruin” his heirs with their inheritance, regardless of
what size it ends up being.
Show him how, by helping charity, he can help himself andthe country as well.
CREATIVE PLANNING, INC. ~ 29
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21500,0);(0,0);(0,21499);(21500,21499)posrelh0posrelv0pib
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21499,0);(0,0);(0,21499);(21499,21499)posrelh0posrelv0pib
Case Study Three
••••••••••••••••••••••••••••••••••••••
MR. JOSEPH LOCKHART
30 ~ CREATIVE PLANNrNG, INC.
• •••••••••••••••••••••••••••••••••••••
CASE STUDY CONTINUED …
CREATIVE PLANNING, INc. :e: 31
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21489,0);(0,0);(0,21500);(21489,21500)posrelh0posrelv0pib
Case Stud! Three
••••••••••••••••••••••••••••••••••••••
shapeType75fBehindDocument1pWrapPolygonVertices8;8;(8655,0);(0,0);(0,21499);(21498,21499);(21498,0);(13402,0);(13402,5309);(8655,5309)posrelh0posrelv0pib
Thinking within the nine dots
JOE
LOCKHART
$15,000,000
32 ~ CREATIVE PLANNING, INC.
shapeType75fBehindDocument1pWrapPolygonVertices8;6;(21498,0);(0,0);(0,20786);(4346,20786);(4346,21498);(21498,21498)posrelh0posrelv0pib
Case Study Three
••••••••••••••••••••••••••••••••••••••
MR. JOSEPH LOCKHART
Thinking within the nine dots
shapeType75fBehindDocument1pWrapPolygonVertices8;10;(16273,0);(4346,0);(4346,7488);(0,7488);(0,21498);(21498,21498);(21498,0);(20941,0);(20941,6906);(16273,6906)posrelh0posrelv0pib
ENHANCED
INCOME
TRUST
ASSET
REPLACEMENT
TRUST
CREATIVE PLANNING, INC. ~ 33
Case Study Three
••••••••••••••••••••••••••••••••••••••
MR. JOSEPH LOCKHART
shapeType75fBehindDocument1pWrapPolygonVertices8;8;(21500,0);(12460,0);(12460,3627);(8892,3627);(8892,65);(0,65);(0,21499);(21500,21499)posrelh0posrelv0pib
JOE
LOCKHART
$15,000,000
34:=: CREATIVE PLANNING, INC.
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21499,0);(0,0);(0,21500);(21499,21500)posrelh0posrelv0pib
••••••••••••••••••••••••••••••••••••••
CASE STUDY CONTINUED …
Plan Tax Savings
Estate Tax Savings
Capital Gains Tax Savings
Income Tax Savings
Total Tax Savings
$ 7,050,000
$ 460,000
$ 441,000
$ 7,951,000
Personal Benefits
Family Benefits
Voluntary Social
Involuntary Social
Total Benefits
Plan Comparisons
Old Plan New Plan
$ 5,800,000 $ 6,500,000
$ 6,750,000 $14,900,000
$ -0- $19,100,000
$ 8,710,000 $ 1,200,000
$21,260,000 $41,700,000
The Bottom Line Challenge
Solve his massive estate tax problems.
Help design a master Family Wealth Plan that will not “ruin” his
heirs with their inheritance, regardless of what size it ends up being.
Show him how, by helping charity, he can help himself and the
country as well.
CREATIVE PLANNING, INC. ~ 35
shapeType75fBehindDocument1pWrapPolygonVertices8;4;(21500,0);(0,0);(0,21499);(21500,21499)posrelh0posrelv0pib
~‘-
~THINKING BEYOND ...
Applying
Use an Enhanced Income Trust
… to eliminate capital gains taxation on the sale of appreciated property .
.. . tomove assets outside your taxable wealth .
.. . to eliminate estate taxes .
… as a very favorable alternative to traditional qualified plans .
.. . as a way to reduce your current income taxation .
.. . to create an endowment in your Family Foundation .
.. . to keep from losing assets from liens and lawsuits .
... to dramatically increase your and your family’ s personal wealth.
Use a Deferred Inheritance Trust
... tophaseininheritancestoyourchildren .
… to eliminate estate taxes .
... to create a charitable endowment fund in your Family Foundation .
… to dramatically increase your children’ s inheritance .
... to include current giving in your Family Wealth Plan.
Use a Family Foundation
… as the beneficiary of your Enhanced Income Trust and Deferred Inheritance Trust .
... to create an endowment fund that you will totally control.
… to financially support the charitable activities that you choose .
… to receive compensation for your own charitable work.
Use an Asset Replacement Trust
… to position Asset Replacement investments outside of your taxable wealth .
… to eliminate estate taxes.
Use a Life Estate Agreement
‘” when none of the heirs is interested in your first and! or second home .
… whenyouwantto keep the home now while you are alive, but give it away after your death .
… when you want a maj or income tax deduction now for a gift you will not make until after your are dead.
CREATIVE PLANNING, INC. ;e: 37
shapeType75fBehindDocument1pWrapPolygonVertices8;8;(21498,0);(0,0);(0,20631);(14094,20631);(14094,21490);(20076,21490);(20076,9546);(21498,9546)posrelh0posrelv0pib
Most
uestions
1. Is this all too good to be true?
This is unquestionably the most commonly asked question of all. Andthe reason is because people do no know that we
are not doing something “sneaky” that will work only if the federal government does not find out about it. These
planning tools and techniques are not “loop holes” that in only a matter of time the IRS will discover and close them
down. In fact, the government is so anxious to revitalize our country through private philanthropy that in recent years
they have actually drafted prototypes of these various legal instruments to make them even easier for people to use.
How long have these trusts been around?
The charitable tax and trust laws as we now know them were established by the Tax Reform Act of 1969. They were
so well designed and so well drafted originally that they have remained virtually unchanged since their introduction.
Are these trusts and techniques you have presented legal?
Not only are they legal, they come right out of the heart of the IRS tax code, section 664. The legality of these chari-
table tools is not questioned in any way by knowledgeable tax advisors. The IRS has set up stringent rules on how
these tools are to be drafted and administered. And by keeping within the clear IRS guidelines in these areas, you have
absolutely nothing to be concerned about.
4. Why have I never heard of these charitable tools?
• It wasn’t until 1983, during the rise of computer technology, that software was finally created by acompany
called PhilanthroTec to illustrate the incredible potential of these various tools.
• And it wasn’t until 1987 that a specialized charitable administrative firm, Renaissance, Inc., came into
existence with the administrative computer technology to make these tools available and affordable for
virtually any American who has at least $2,000 annually to invest.
In recent years, articles on these charitable tools continue to regularly appear in virtually every financial
and business publication from the Wall Street Journal to Money Magazine and everything in between.
If these tools are so good, why haven’t my attorney,
accountant or other financial advisors ever told me about
them?
Your financial advisors most likely already know about these charitable tools. They may not have mentioned
the tools to you, primarily because they do not really know what to do with them. They only see them merely
as charitable giving tools and not as the versatile Family Wealth Planning tools you have seen demonstrated
here.
Consequently, unless you were to mention a strong interest in charitable giving, they probably would not have
considered these tools to be appropriate for your particular Family Wealth Plan. Unfortunately, most of these
professionals have not yet come to fully understand the broad application ofthese charitable tools to all aspects
of the estate and tax planning process, probably because they have not been adequately trained in this special
ized area and possibly because they have not yet fully comprehended the deeper dynamics of the social and
spiritual aspects of Family Wealth Planning that makes these tools so very desirable for clients.
We regularly have attorneys, CP As, trust officers and other financial professionals attending our seminars to
become more familiar with this specialized area of Family Wealth Counseling.
38 :m: CREATIVE PLANNING, INC.
Who else is doing this kind of planning?
As you might expect, the wealthiest people in America have been using these charitable tools almost since their
creation. Recently, however, thanks primarily to PhilanthroTec and Renaissance, thousands of additional Americans
have now been able to take advantage of these tools in the design of their Family Wealth Plans. Considering the
number of advisors who are utilizing these tools on a regular basis, we estimate there are approximately 1,000
nationwide.
7. Where can I get more information on these tools?
The single best source for additional technical details on these charitable tools is Tax Economics of Charitable
Giving, published by the accounting firm of Arthur Andersen & Co. You may write to them at Arthur Andersen, 69
W. Washington St., Room 2952, Chicago, IL 60602 to obtain an order form. Our firm can also provide you with
additional marketing materials upon request.
8. What happens if the tax laws change?
Typically, whenever the IRS changes a tax law, it is not retroactive. In other words, they change the law to go into
effect from date of change on. If your Family Wealth Plan has already been completed, you do not need to be
concerned about future tax law changes that might adversely affect your existing plan.
Since the charitable tax law has continued virtually untouched since its establishment in 1969, and since other tax
laws change almost annually, this is a clear indication that the charitable area of the tax law is one of the safest and
least volatile parts of the entire tax code.
As an illustration, even in President Clinton’s 1993 tax bill, the only change that directly impacts this kind of planning
is that people who transfer highly appreciated assets into an Enhanced Income Trust will not have that transfer
included as a preference item for Alternative Minimum Tax calculations. This means that many people will receive
an even greater income tax deduction for the transfer than they would have before. If an extremely liberal president
is passing laws making this kind of planning more attractive, the chances of future tax laws passing that would
restrict or discourage this kind of planning seem extremely remote.
9. What are the risks in all this?
As amazing as it might seem, the risks of this type of dynamic Family Wealth Planning are no greater than any
other traditional type of planning. You still have the risk of how you will choose your investment portfolio and its
subsequent performance. You still need to keep inflation in mind as you continue to manage your family’s wealth.
You must still maintain oversight on how your assets are performing. You will, fortunately, no longer need to be
concerned over increases in capital gains and estate tax rates since you have opted for voluntary philanthropy
instead.
The only “risk” in charitable estate planning is that you are making irrevocable transfers. These transfers do
prevent you from changing your mind and undoing things later. But, as we have seen in the previous case studies,
the personal benefits of making an irrevocable transfer into your charitable trust is so phenomenally greater than
what you have irrevocably transferred into the trust the risk is really nonexistent.
10. I’m not prepared to decide what charitable organizations I want
to give to or how I want to give to them. Do I need to decide that
up front? What if I change my mind later?
Very few people we meet have any idea that they have the capacity to give millions of dollars away to charity
without it costing them or their heirs anything. Because of that, they are not initially prepared to adequately address
this profound opportunity. One ofthe most positive aspects of Family Wealth Planning is that you will be able to
change your charitable beneficiaries up until your death and, if you should so choose, even after your death through
instructions to your heirs. The plan is irrevocable, but the charitable beneficiaries can be changed at any time.
CREATIVE PLANNING, INC. ~ 39
shapeType75fBehindDocument1pWrapPolygonVertices8;6;(21498,0);(0,0);(0,21494);(11088,21494);(11088,17288);(21498,17288)posrelh0posrelv0pib
y
Wealth Planning Prospect?
|
Personal Profile (check all that apply) |
|||
|
Over 55 years of age |
|||
|
In fair to excellent health |
. ./ |
||
|
Have living chiklren |
/ |
||
|
Family Wealth Make Up Profile (check all that apply) |
|||
|
Over $5 million net worth |
|||
|
Face major capital gains taxes on highly appreciated assets |
|||
|
Have qualified retirement funds in excess of$750,000 |
|||
|
Professional Profile – Current or Retired (check only one) |
|||
|
Business owner |
V |
||
|
Top corporate executive – large corporation |
|||
|
Highly compensated professional (athlete, doctor, lawyer, accountant, etc.) |
|||
|
Philanthropic Profile (check all that apply) |
|||
|
Currently give over 5 of AGI away to charity |
|||
|
On the board of a nonprofit charity |
|||
|
Have already made provisions for giving to charity in current estate plan |
|||
|
Income Profile (check all that apply) |
/‘ |
||
|
Earning over $200,000 AGI |
v’/ |
||
|
Have annual discretionary incorre of over $100,000 |
// |
||
|
Are paying over $50,000 in iocorre taxes |
I |
||
|
Retirement Profile (check all that apply) |
|||
|
Want to sell business outright or pass it on to heirs |
II |
||
|
Have or will have more retirement income than needed |
/ |
||
|
Want to reposition investments from growth to income |
/ |
||
|
Family Wealth Distribution Profile (check all that apply) |
J |
||
|
Face major estate taxes at death |
// |
||
|
Want heirs to receive full value offumily’s weahh |
/ |
||
|
Want specific assets to be passed on to heirs |
/ |
||
|
Total Checks (One check in each area or eight checks total = Qualified Prospect) |
|||
40 se: CREATIVE PLANNING, INC.
shapeType75fBehindDocument1pWrapPolygonVertices8;8;(21500,0);(0,0);(0,1013);(283,1013);(283,3319);(358,3319);(358,21489);(21500,21489)posrelh0posrelv0pib
Providing Profoundly
G re •.• ,,·“,-~··
You have now learned that instead of being involuntarily forced to give a
major portion of your family’s wealth to the IRS in taxes, you have the
option of voluntarily self·directing substantially greater Social Capital to
the charitable activities of your choice.
Now that you have so much to give away, what will you do with it?
Build a new wing on your local hospital?
Set up an endowmentto support full-time, Christian missionaries?
Train the poor in your community to find better employment?
Build a recreational facility to keep inner city kids off the streets?
Provide food and shelter to the poor in your community?
Provide scholarships for high school students who can’t afford to attend college?
Endow a chair at your alma mater?
Build and support medical clinics in third-world countries?
Provide grants to budding young artists?
Endow a chair for your local symphony?
Build a retreat center for your local youth camp?
Provide grants for medical research?
Establish a drug and alcohol rehabilitation center?
Sponsor cultural events in your local community?
Endowthe Christian ministries that have greatly influenced you?
~Establishacommunityfoundationsootherscansupportlocalcommunityprojects?
/ • Print thousands ofBiblesforworldwide distribution?
~‘. Build an orphanage and totally underwrite its ongoing operation?
• Develop a city park?
Voluntarily giving to good causes provides profoundly greater personal
satisfaction than does being arbitrarily forced to “give” to our country in
the form of taxation.
How will you be remembered?
as a Tax Payer who involuntarily had it taken away?
OR
as a Philanthropist who voluntarily gave it away?
CREATIVE PLANNING, INC. ~ 41