As a mass tort attorney, you’re familiar with the emotional dichotomy of security and overwhelm that often accompanies a significant contingency fee coming in the door. You feel secure knowing that the funds are finally available to you, but navigating the tax implications, best investment strategies, and more can be overwhelming.
Enter attorney fee deferral, a financial strategy that takes care of all of this, enabling you receive your fee as payments spread out over time. Here are a few reasons this could be a worthwhile strategy for you to explore:
Tax Advantages
Deferring your fees allows you to only pay taxes on the portion you receive each year. The remaining balance can grow tax-deferred within an investment portfolio, significantly reducing your tax burden in the year you receive the fee while also allowing your money to compound over time.
Improved Cash Flow Management
Given the unpredictable nature of mass torts, it’s difficult to budget and financially plan for yourself without knowing for sure when your next fee will come in. Deferring your fees ensures a steadier stream of income—one that you get to fully customize based on your needs and goals—allowing you to make informed decisions about your finances and plan for the future.
Investment Opportunities
Deferral allows you to invest the deferred portion of your fees pre-tax. This can generate significant returns over time, potentially outpacing inflation and increasing your overall wealth. By strategically investing your deferred fees, you can achieve your long-term financial goals more effectively.
Long-term Strategy
There is no minimum or maximum to how much you can defer. You can also build on existing deferral plans by adding new fees, and you can customize and layer new streams—making fee deferral a career-long financial strategy that addresses all of life’s milestones and focuses. Attorney fee deferral is a powerful tool that can help mass tort attorneys manage their finances strategically. By harnessing the power of time with fee deferral, you can gain significant tax advantages, improve cash flow management, explore investment opportunities, and strategize your finances now and into the future. Interested in seeing how fee deferral could work for you? Let’s chat.
Learn more about Milestone at www.milestoneseventh.com.
