Key Person Asset Growth
How to secure the long-term commitment of your company’s most important human asset.
Your company has no asset more critical to growth and profitability than the teams of leaders and experts who guide their success. And those highly
valued, highly compensated key people have no asset they value more than a secure retirement income security. But decades of government limitations on tax-deferred retirement investment have pushed your key people and your company into a trap. They cannot build adequate retirement assets in your company’s qualified plan. Your company cannot recruit and reward key people competitively. One solution is a nonqualified plan where they tradeoff the guarantees of a qualified plan for higher pretax contributions. Another is to use the tax advantages and security of personally owned life insurance purchased at a corporate level.
How effectively have you aligned the
personal financial success of your key
people with the corporate financial
success of your company? Where are
the gaps in your planning today?
If you have a nonqualified benefits plan, are you
concerned aboutunder-utilization, securitization,
informal funding, or DOLcompliance?
If not, are you concerned about the drain to cash flow
from increasing salaries, bonuses, and perks?
Have you ever returned qualified plan contribution
checks to key people because the plan did not meet
the benchmarks that allow them to fully contribute?
Are you concerned that your company will have
trouble recruiting executives or technical specialists
in the future without long-term incentives?
Are you concerned that key people who depart the
company potentially take with them knowledge and
relationships that drive the company’s success?
Are your key people concerned about the severe
limitations on their ability to build tax-deferred assets
through your qualified plan?
Would more information help your future decisions?
Consult Leisman Library
Email Bill Leisman