Business Planning
WHAT WE OFFER
KEY EMPLOYEE PROTECTION
Key employees are the foundation of a successful business; they are sources of leadership and profitability to the company who would be extremely difficult to replace. Key Employee Protection provides the perfect solution for the company in case of death or disability of a key employee that can be devastating to the financial well-being of your company. Purchasing life and/or disability insurance on your key employees can be a cost-effective way to safeguard your business and minimize the impact of a key employee’s death or disability.
BUY/SELL FUNDING
Insuring the life of your business. A buy-sell agreement is a contract among business owners. At the loss of an owner, the business interest is transferred according to the terms of this contract. The other owner(s) are obligated to purchase the deceased's business interest and the deceased's heirs are obligated to sell.
Using insurance as a funding vehicle provides the following benefits:
Immediate availability of proceeds when death or disability occurs
The insurance proceeds used to buy the deceased's share are generally cost-effective
Death benefit proceeds are generally federal income tax free
EXIT STRATEGY
Setting a defined Exit Plan Strategy sets the road map for your company to exit potentially with a maximum dollar amount within a defined timeframe by maximizing short term revenues. As much as some business owners may avoid the succession issue because they love working and don’t want to stop any time soon, devising a written Exit Strategy for your business ultimately benefits you, your family, and possibly your employees.
EXECUTIVE BONUS ARRANGEMENT
An executive bonus arrangement is a non-qualified employee benefit arrangement in which an employer pays a compensation bonus to one or more selected employees, which the employee may then use to purchase a personally owned life insurance policy on his or her life.
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DEFERRED COMPENSATION
An amount of earned income that is payable at a later date. Most deferred-compensation plans allow the wage earner to defer tax now so that the funds can be withdrawn and taxed at some point in the future. The most common form of deferred compensation is a retirement plan. Deferring income allows the earner to use the income later in life when they have a lower tax rate. Other examples include pension plans and stock-option plans.
QUALIFIED PLAN FUNDING
Qualified retirement plans usually cover significantly all eligible employees and have special tax advantages. Such plans are subject to strict and somewhat complex rules in order to obtain tax advantages.
There are two broad categories of qualified retirement plans:
Defined Benefit Plan provides employees with a fixed and known benefit at retirement; the amount is usually defined by length of service and highest attained salary.
Defined Contribution Retirement Plan provides employees with a retirement benefit based on the value of the employee’s account at retirement. There are specific Defined Contribution Retirement Plans available including a 401(k) Plan, 403(b) and a Profit Sharing Plan. Variations of an IRA-based Defined Contribution Plan include Simplified Employee Pension Plan (SEP) and Savings Incentive Match Plan for Employees (SIMPLE). Both the SIMPLE and SEP plans bring the benefits of employer-sponsored retirement programs to the employees of small business.
