How The Rainmaker Plan® Works


The process begins with the establishment of a new corporation. As part of our services Benetrends takes care of the setup of this new c-corporation using the proper legal structure that supports the establishment and operation of the company's qualified retirement plan. Next, Benetrends designs a retirement plan for the new company.

Benetrends will design this plan using specific features that are right for you and your business. These features will be determined during an upfront needs assessment session with an expert retirement plan specialist from Benetrends.  The new company then adopts the qualified retirement plan. The company's new retirement plan is designed to allow rollovers from most other types of retirement plans.

This allows you and your company's employees the option to rollover current retirement funds into the new retirement plan, tax-deferred and penalty-free.  You, and the other plan participants that have rollover money, then direct how these funds are to be invested in your own individual account(s). The Rainmaker Plan® design allows rollover contributions - and only rollover contributions - to be invested in the stock of the new company that sponsors the retirement plan.

If you or other plan participants direct the investment of your rollover contribution in company stock, the plan then purchases stock in the new company.  The company stock purchased by the plan is credited to the individual accounts of the plan participants per their investment decisions. Remember, only rollover money can be invested in company stock.

For example, suppose you have $250,000 in an existing retirement plan and you require $150,000 to purchase a new business using the Rainmaker process. You can roll the entire $250,000 into your new company's retirement plan. You would then direct $150,000 of the rollover to be invested in company stock.

The remaining $100,000 in the plan can be invested in other stocks, bonds, or mutual funds, depending on the investment options adopted by your plan.  Your new company ends up with $150,000 in cash that it can use for any legitimate business purpose, including payroll, rent, marketing supplies, salaries, furniture and fixtures, and more.

You and your employees will utilize the new plan to build personal wealth plan for your retirement and build wealth for the company. The retirement planning experts at Benetrends will help you determine how to get the maximum benefit from your plan, and the best way to achieve your long-term goals.

Just like other qualified plans, rollovers, wage deferrals, or contributions can be invested in other investment options such as stocks, bonds, and mutual funds, giving plan participants the ability to diversify their portfolios. Although Benetrends does not provide investment advice, you may use your own financial advisor to determine what other types of investments to offer through your company's new plan, or you can enlist the services of one of Benetrends nationally recognized partner firm.

If at some point you find you need additional funding for the company, you have the option to redirect some or all of the $100,000 from the original roll over into additional company stock.

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Our Pledge to You

Our mission is to make every Benetrends client our champion. For over 35 years, our Rainmaker Plan® has been tested and proven to work, providing a means for more than 17,000 entrepreneurs to achieve their dreams of business ownership, creating both jobs and prosperity. We are so confident in the Rainmaker Plan design that we stand fully behind our work, backing every client with our Rainmaker Guarantee.

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Information provided by Benetrends Inc. is not intended to be used as legal or accounting advice, or as the sole basis for investment decisions, nor should it be construed as advice designed to meet the particular needs of an individual investor. Please seek the advice of legal or tax professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.
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