For financial professionals who want to serve high-net-worth clients, some of the most attractive prospects might be successful self-employed people who are generating a decent level of free cash flow.
They have a high income today.
They may need annuities, special trusts, special types of life insurance and even advice about how to protect assets from litigants.
For the 12 metro highest areas where high-income self-employed people contributed the most to self-employment retirement plans, see the gallery above.
To make the cut, each metro area had to have average contributions of at least $35,761.
The data: The Internal Revenue Service puts self-employment retirement plan contribution data in its geographic area data compilations.
The self-employment retirement contribution total includes contributions to arrangements such as simplified employee pension individual retirement arrangements, Savings Incentive Match Plan for Employees IRAs, Solo 401(k) plans and related types of plans.
Methods: We separated out the taxpayers with at least $100,000 in taxable income, then looked at the self-employment retirement plan contribution data for the high-income taxpayers who reported these types of contributions on their tax returns.
We based the rankings on average contributions for the taxpayers who reported any self-employment plan contributions.
The numbers: The median contribution was about $28,000.
The minimum was $8,600 — in the Savannah, Georgia, area — and the maximum was more than $40,000, in two cities on the East Coast.
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