Develop a strategy to preserve your business and your net worth
Effective business continuation is both an "art" and a science. First and foremost, it is an art. Because the best business plan always considers your unique financial goals and objectives, creativity and customization is required to select and tailor those strategies best suited to meet your specific business continuation and benefit needs.
However, business continuation and benefit planning is also a science. The best business plan should take into account the tax and legal ramifications of the various financial strategies adopted. Your Securian financial advisor or registered representative will incorporate both the art and science of business planning in a program recommended to you.
Planning for changes in ownership
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.
The Art and Science of Business Planning can help ensure the ongoing success of your business.
Securities and Investment Advisory Services are offered through:
Securian Financial Services, Inc.
400 Robert Street North, St. Paul, MN 55101-2098
Securities Dealer, Member FINRA/SIPC.
Registered Investment Advisor
1-800-820-4205
A good plan is essential to the ongoing success of your business.
