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 Executive Compensation Plans -
Develop a Strategy to Preserve Your Business and Your Net Worth!
At
Slone Associates, Inc.
we can help
you implement a strategy reflecting the current stage of your business, your personal
financial needs and the needs of your employees. A good strategy is essential to the ongoing success of your business.
Solid
planning can help you maximize these three business planning concepts:
Business Continuation Planning
You can prepare for the problems that can come with a change in ownership by
using these techniques:
Buy-Sell Agreements -
This is the most common business continuation planning tool. Life insurance
funds the agreement, which establishes the value of your business and assures a ready
market for your share in the business after you're gone.
Key Employee Life Insurance - Provides you with the funds you need to keep your business running smoothly when
you lose a key employee.
Personal Estate Planning - Carefully incorporating your business needs into a total estate plan can help
you meet estate tax and liquidity needs to preserve the full value of your business for
your family and associates.
Using Business Dollars for Personal Expenses
These valuable concepts can help:
Split-Dollar Life Insurance -
Your corporation can help you pay for your own life insurance by
"advancing" your money to pay the annual premium. This low-cost benefit can also
be available for key employees.
Disability Insurance -
Your business can provide you with personal disability insurance -- which
continues a portion of your salary when you're unable to work -- and the premiums (in most
cases) are tax deductible.
Section 303 Stock Redemption -
Your business may be able to help you pay estate taxes and settlement costs if
your stock is worth more than 35 percent of your adjusted gross estate. Under a Section
303 stock redemption, the business redeems some stock from your estate to produce cash to
meet your estate's obligations.
How to Use Employee Benefits to Increase Income and Improve Retention of Key Employees
These concepts can help you get the most out of your benefit dollars:
Disability Salary Continuation Planning -
A salary continuation plan can help protect you, your key employees and your
business from the financial consequences of a disability. If the plan is funded with
disability insurance policies, premium payments are considered tax deductible as a
necessary business expense.
Qualified Pension and Profit-Sharing Plans -
Employee-sponsored retirement programs help employees prepare for retirement and
allow them to take advantage of special tax breaks. Any contributions you make to the plan
are tax deductible.
Life Rewards -
Highly compensated executives are limited in the amounts they can save for
retirement in qualified plans. Nonqualified plans are available through Life Rewards and
allow associates to enhance their retirement benefits.
Split-Dollar Insurance -
Life insurance can be provided to select executives at a reduced cost through
split-dollar insurance plans.
Golden Executive Bonus Arrangement (GEBA) - GEBA and other executive bonus strategies provide life insurance to employees
and give your company a current income tax deduction.
Personal Financial Analysis
- This service helps employees manage their money more effectively and achieve
their personal financial goals.
Group Insurance -
Your business can provide a variety of programs, and the tax deductions
generated by the premiums you pay make the cost of these benefits even lower. Medical,
disability and life insurance are the three most sought-after programs.
Slone Associates, Inc.
can help ensure
the ongoing success of your business.
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