CORPORATE AND EXECUTIVE BENEFITS
Newport Financial Group, Inc. offers clients corporate benefits and retirement programs targeted to the company’s broad base of employees, including life, disability, medical, 401k plans, and welfare benefits. For our clients’ key executives, our firm’s capabilities include design and implementing executive benefit programs to retain, recruit and compensate key executives through non-qualified deferred compensation plans.
NFG provides clients with leading strategies and products in executive, employee, welfare, and retirement benefits. In addition to the variety of client solutions accessible through NFG we offer innovative technology and decision-making tools to assist clients in determining the appropriate solution for their organization.
CORPORATE RETIREMENT PROGRAMS
As a business owner, you make decisions every day which affect the efficiency and profitability of your business. One of the most important decisions you will make is determining which retirement program best meets your long-term needs and those of your valued employees.
Implementing a retirement program will provide a number of key advantages to you and your employees. From an employee’s perspective, a solid retirement program is a highly valued benefit which can help meet long-term retirement needs. From a company’s perspective a solid retirement program can:
- Help attract and retain valued employees
- Provide a federal income tax deduction and tax deferred accumulation
- Increase employee commitment and productivity
Longer life expectancies, potentially inadequate Social Security benefits, and the escalating cost of living all place a greater responsibility on individuals to meet the financial demands of retirement. In order to accumulate sufficient assets to provide an adequate retirement income, every working American should start to save as early as possible. The opportunity to increase retirement funds through an employer-sponsored retirement plan can be an attractive benefit for both you and your employees.
EXECUTIVE COMPENSATION
As a business owner, you are keenly aware of how difficult it is to attract and retain key personnel. The competition for superior technical, managerial, and executive talent is so fierce that you’re constantly faced with finding ways to make your executive compensation package more attractive.
Nonqualified executive compensation plans can be structured to enable you to provide benefits that address precise business objectives to only those key employees or executives your company wishes to reward and retain, and even allows you to fund the plan in a way that will help your company recapture plan costs. When it comes to benefit levels, eligibility, and control of plan assets in a nonqualified plan, you, as the business owner, are the one with the power to make those decisions.
The following nonqualified executive compensation plan strategies could help your business effectively address the specific needs of its executive compensation program:
- Nonqualified Deferred Compensation (NQDC)
- Supplemental Executive Retirement Plan (SERP)
- Executive Bonus (Section 162) Arrangement
- Restrictive Executive Bonus Arrangements
- Death Benefit Only Arrangement (DBO)
- Split Dollar Life Insurance
While corporate retirement programs are a good starting point, they may not be the whole solution for your company’s executive compensation program. This is why many business owners turn to nonqualified strategies to supplement their tax-qualified plans.
RISK MANAGEMENT
As a business owner, you have taken precautions to mitigate the risks associated with operating a successful company. The most overlooked risk is the financial value of a business owner and key employees and the monetary impact incurred due to a premature death or disability.
Implementing a risk management strategy provides a number of key advantages to you and your business. From an employer perspective, a proper strategy will insure the continued long-term success of your company despite any catastrophic events which may occur. A well-drafted a properly funded plan can protect the interests of the business owners and help facilitate the continuation of the business.
The following risk management tools could help your business effectively address the specific needs and values of a properly funded plan:
- Buy-Sell Arrangement
- Key Person Insurance
The best type of buy-sell arrangement depends upon several factors, including the type of business structure and the number of owners. An entity purchase arrangement allows a company to buy out its deceased owners, while a cross-purchase arrangement allows owners to buy each other out.
Key person insurance will protect your business from the premature death of a key employee whose knowledge and contribution to your company are invaluable. The loss of such a key person may result in not only a loss in sales but a potential loss of important contacts and goodwill.