Planning for your business may often times feel overwhelming. There are so many variables to consider for entrepreneurs who own their own business… And time is always a precious commodity. Understanding the variables we seek to educate and implement wealth solutions that fit a business owner's current objectives so that Business owners can continue doing what has made them successful.

The following variables are common areas of concern for most Business owners: Business succession planning, Retirement plan solutions, Disability, Buy-Sell planning, Executive Bonus arrangements, Retaining Key Employees, Financing/ Debt Obligations,

Implementing the right business strategies means you are more likely to be free of worries and able to concentrate on your business goals and dreams.

Whether you are looking for insurance, retirement products and services or investments, part of what you'll need to consider will be uplifting - like rewarding your employees and top executives with benefits and bonuses. And, part of what you'll need to manage is the unexpected - like maintaining business continuity during a disability of yourself or one of your employees, or upon the death of a business partner.


Business Planning Basics

Business Succession Planning
For Individuals who are owners of privately held businesses, a important part of estate planning centers on increasing fiscal and underlying worth for all generations. This involves creating tax-efficient solutions for transferring ownership, diminishing the effect of a transition on key non-family member employees, judging the pros and cons concerning the sale or continuing the business, taking into consideration competing interests among family members and, with the utmost significance, supporting the continuance of family relationships.

Retirement Plan Solutions
Common factors to consider while selecting a retirement plan are; Business structure, number of employees along with their age, revenue, and goals of a business. There various options for meeting goals of business owners in whatever stage of growth you are in. A great tool for greater retirement contributions along with greater tax deductions for specific Business owners is called. 412(i) (See 412(i) for more information).

Disability
When a disability leaves you unable to work for an extended length of time, you lose the ability to earn an income- the one thing you've always relied on to provide for yourself and your loved ones. Meanwhile, your living expenses continue-in fact, they're likely to increase for a number of reasons. You could need help around the house or have higher medical expenses, for example. That's where disability income insurance (DI) comes in. It's designed to help you maintain your standard of living when you cannot work. If you don't have much in the way of assets for a financial cushion, you need enough to cover costs and supplement your income until you can go back to work.

Disability income insurance is needed by just about everyone who earns a living. Surprisingly, single people often need it more than married couples because they don't have a spouse's income to fall back on if they are injured or become too sick to work. On the other hand, most married people have a hard time imagining what it would be like to live on one salary when they barely get by on two. And unfortunately, disability strikes more often than you may think.

Buy-Sell
Buy-Sell agreements and their funding are critical to a smooth transition of business ownership from one party to another. As a business owner, a buy-sell agreement provides a ready market for what is typically an asset without a public market. Without a buy-sell agreement, a deceased or disabled business owner's estate may be stuck with an illiquid business interest that may not be easily sold. A buy-sell agreement, properly funded with life insurance, or disability insurance is an ideal alternative to insure the business owner's illiquid business interest is converted to cash for the family.

Executive Bonus
Executive bonus plans can help employers reward select employees, supplement existing benefits plans, stimulate better employee performance, provide a cost-effective benefit replacement for group term life insurance and minimize reporting requirements.

Under an Executive Bonus Plan (also known as a Section 162 Plan), the employer provides a bonus to select employees in the form of cash or in the form of premiums on life insurance or disability policies on the employees' lives. The executive receives the bonus as taxable income; and the employer is provided with a business tax deduction assuming the bonus qualifies as reasonable compensation to the executive.

Executive Bonus is different from key person insurance because it is employer-financed personal life or disability insurance intended to benefit the selected employees, where as key person insurance is intended to protect the business from losses resulting from the employee's death.

By providing a bonus to select employees, an employer is able to provide additional compensation to certain employees and deduct the premiums for a policy on the employee's life

Financing and Debt
Many business owners finance the expansion and growth of their business through bank loans. However, many financial institutions may require life insurance on the owner of the business to secure or collateralize this debt. In case of the death of the business owner, the lending institution would recover its loan from the death benefit. A life insurance policy may provide the death benefit necessary to fulfill this obligation. The policy may be owned by the business or by the business owner individually with a collateral assignment of the policy to the financial institution. To the extent the proceeds exceed the debt, the owner of the policy can name a beneficiary for the remaining death benefit.