Categories
Retirement Plans

Who is a Candidate for a Retirement Plan?

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[Transcript]

Let’s face it our clients can always use more planning help.

Do you have profitable businesses that are looking for better solutions?

Perhaps they’ve already paid their salaries.

They’ve already done their year-end bonuses.

Maybe they’ve already done capital improvements into the business.

BUT they still have surplus profits

They’re still looking for ways to spend that money creatively and effectively and tax efficiently at the end of the year.

Do they already have enough money to live on?

What do you tell these clients?

What solutions do you present to them?

A qualified retirement plan could be a perfect solution!

Let’s take a look at some real numbers…

Perhaps it’s a 401(k) plan where the employee can defer up to $19,000 and salary on a tax efficient basis. An additional $6,000 if they’re over age 65.

Maybe they need more…

Perhaps a profit sharing plan where they can put away and this is the business putting away all in a tax favored basis that can do up to $56,000 a year…

…or maybe they need even more…

Maybe a defined benefit plan will help them.

In a defined benefit plan, let me give you an example…

For example at age 55, a business on a tax favorite basis can put away anywhere from $200,000 to $500,000 depending on the type of plan.

And that is annually!

That is huge and on the benefit side that contribution can provide a benefit of up to $225,000 a year…

And that’s every year for the rest of their life!

These are absolutely compelling benefits.

These are incredible benefits, very meaningful to the clients.

Perhaps the client wants to control their own investment.

It’s in a traditional defined benefit plan or maybe they have a lot of employees or they have multiple owner employees with bearing ages and a cash balance plan award from.

Or maybe they are interested in guarantees only and they want to eliminate all market risk and they can go with a fully insured 412(e)(3) plans.

Talk to us, talk to your clients. Allow us to help you help them!

Contact us today and learn more.

How we can help you and your clients with qualified retirement plans?

Categories
Retirement Plans

‘Tis the Season for Qualified Retirement Plans

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The time is now.

It’s the fourth quarter…

As we like to say ‘tis the season and no I don’t mean for the holidays.

‘Tis the season for qualified retirement plans.

First and foremost, every single business out there should have some type of qualified retirement plan.

These are absolutely fabulous planning tools and your business clients they need to have these plans.

You need to introduce them to these concepts.

So there’s a lot of plans out there but we can help you find the most suitable plan for your clients.

Allow us to help you whether it’s

  • A 401(k) plan
  • or a Profit Sharing Plan
  • or some type of Defined Benefit Plan
  • or Traditional Plan
  • or how about a Cash Balance Plan
  • or even a Fully-Insured 412(e)(3) Plan

We have the right answers for your clients.

We are the experts so you do not have to be.

It’s a win-win for everybody!

For your clients, they get a fabulous retirement plan benefit for them and their business and all in a potentially tax-favored basis.

For you, you get to introduce them to this concept.

You get to be their hero!

It’s your value-added and you can do this all about growing your practice as well.

So it’s the fourth quarter…

Is it too late for these plans?

Absolutely not!

We can establish plans all the way up through December 31st of this year.

That’s right 12/31!

Now we don’t recommend that you wait that long, but we do have the ability.

We’ve got the experience and we’ve got the expertise to literally do last-minute plans all the way through 12/31.

So don’t hesitate!

Please contact us now.

Let us help you introduce these concepts to your client and we can give your client an invaluable benefit that they’ll need for the rest of their life.

Categories
Risk Management

Year-End is Fast Approaching, Are You Ready?

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The end of the year is fast approaching.

What are you bringing to your business clients?

Do you know that when you’re reviewing end of year numbers with your clients…

They’re secretly relying upon you to make suggestions about how they could be doing things differently and more effectively.

The beautiful thing is that you can make these suggestions right now without changing anything about how you run your practice.

Make this year-end exciting by bringing new ideas and new opportunities to your clients.

Almost all businesses are going to hold meetings on planning budgets, cash flow, and expenses…

We want you to not only have a seat at the table when these topics are being discussed, but to lead and engage your clients like never before.

You can bring ideas knowledge and potential solutions to help them along their way.

These end of year planning sessions are a perfect time to look at employee medical plans, commercial insurance packages, and retirement options that can directly impact the lifestyle of the business owner and their employees.

Are their current plans working for them?

What alternatives are there in the market that can save them money and protect the business further.

There are disruptors in tools being used today that create efficiencies for businesses that most clients are completely unaware of.

Now it’s time to set yourself apart this year.

Show your clients that continuing their relationship with you, will help relieve their stress and add value to ways that they have never imagined.

To explore these options further and find out how you can share these concepts with your clients without having to learn a new skill set…

Contact me or drop a comment below.

Categories
Captive Insurance

Who is a Captive Candidate?

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[Transcript]

You may have heard the term Captive Insurance.

But many may not know exactly if or how you can benefit from this type of insurance program.

Captives are alternative type of business insurance which is set up for your company and/or its related entities.

A captive is essentially an insurance company that you create specifically to insure your own company’s risk.

A strong reason to form a captive is to avoid using the traditional commercial insurance companies which may have volatile pricing year over year and may not meet the specific need of your business.

So who’s a candidate?

First and foremost your company must have enough risk for it to make sense.

An insurance company can’t exist without risk and you will need to have enough risk so that it can be actuarially priced to provide sustainable insurance coverage.

A company must be profitable.

If a company is not profitable, there are better options than to form a captive insurance company.

We expect our client companies to have at least $10,000,000 in annual gross revenue.

And companies with higher revenue amounts usually make very successful captive candidates.

One of the reasons for this is that greater revenue means greater risk and risk is always the key.

We like to see our clients with annual commercial insurance coverages that cost over $200,000.

And owners who are looking for alternative options, who understand risk transfer, and who have an entrepreneurial spirit.

Should a client meet these requirements, we would conduct a more thorough review to understand the business, the risk of the business, and the risk tolerance of the business owner.

Understand that you and your clients do not have to become experts in forming and managing a captive to take advantage of this type of alternative program.

At RMC Group, we guide you through the process of forming, managing, and staying in compliance with your captive insurance company.

A captive can be a great tool for:

  • Gaining control of the company’s risk
  • Procuring better coverage
  • Potentially lowering insurance cost
  • And it’s a gateway into leveraging by turning liabilities into assets.

Shoot me a message today if you want to discuss more.

Categories
Retirement Plans

Traditional Plan vs. 412(e)(3) Plan

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[Transcript]

When you get to 65, you have X-benefit…

$10,000 a month…the number is irrelevant…

You can do the Traditional Plan, provides the same benefit, the $10,000 a month

It’s just how you get there.

You can invest in the market, the market will appreciate more than a very conservative investment in the 412.

So it’s not, the beauty of the 412 as you pass it…

It’s called Fully-Insured cause you pass it on to an insurance company, the liability, but the insurance company says as long as you pay these very conservative premiums…

We will 100% guarantee that for the rest of your life when you get to retirement until you pass away – you can live until you’re 110 – we’re going to pay you that benefit!

Now conversely, in the Traditional Plan – I said it cost $100,000 in a 412, in a Traditional if I have decent market performance, it might only cost me $70,000 a year.

Now conversely though, I can put $70,000 a year away and when I turn 64 the market, we can have a 9/11 event or we can have a Black Friday or whatever it was (Friday I think it was when the market crashed…)

The market can cut in half and then my reserve at 64 cuts in half and now I have one year until I retire to make that up.

So that’s why the conservative nature of the 412, sometimes people really like that!

Categories
Retirement Plans

Life Insurance for Advisors

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So life insurance…

So many advisors, they’re afraid of it, they don’t understand it.

There are so many wonderful benefits and ways to utilize life insurance for your business clients.

Terrific planning strategies you can simply help your client, at the same time you can help enhance your practice.

It’s a wonderful planning tool, whether it’s from deferred compensation plans to keyman policies to buy sell arrangements…

How about qualified retirement plans.

These are all wonderful planning tools, wonderful strategies which utilize life insurance for your business clients.

Qualified retirement plans…do you have one?

If so talk to your clients about adding a death benefit.

It’s an absolute terrific way to add life insurance on a tax-favored basis and all at the same time provide a very meaningful benefit and a planned completion component to your plan.

No qualified retirement plan for your client.

No problem! Talk to us…

We can establish a plan for your client!

This is our expertise, this is what we do. We make it easy for you!

You establish a plan which provides a very meaningful retirement income benefit.

It could also include a death benefit and all these benefits are on a potentially tax-advantaged basis to your client.

It’s a win-win!

Your clients will absolutely love these benefits and you’re going to love it too because it’s value added for you.

At the same time, you can help enhance your practice.

Talk to us, give us a call.

Click on the link below, we’ll share some of these strategies with you where you can utilize these life insurance strategies and to benefit your client.

We look forward to talking to.

Contact us to learn more!

Categories
Risk Management

Every Room in Your Client’s House

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How well do you know your clients?

Have you been through every room of their house?

Imagine your client’s business is a house.

Each room represents some aspect of a company, like…

  • Their operations
  • The finances
  • The management
  • Employees
  • And even insurance

Not every CPA or even the business owners themselves have the time or even the expertise to make sure that every room is in order.

This leaves the door open…

  • To catch lost opportunities
  • To catch cash flow issues
  • And to beat competitors that are going to try to come in with better strategies

Now let’s face it, everyone loves coming home to an orderly house.

Is your client’s house in order?

A great way to protect yourself and your client’s relationship is with better housekeeping.

One way to do this is by using the risk analysis process.

Now this does sound complex, BUT I’ll explain how you can do this with very little experience at absolutely no cost to you or your clients.

A risk analysis begins with the property and casualty insurance review.

This is where every traditional insurance coverage is reviewed. This includes your

  • Work comp
  • GL (general liability)
  • Property
  • And any other commercial policies that your client may have

Many times these clients are exposed or financial strapped because of the design of their insurance program.

This page by page review will give a detailed summary and it will highlight areas of improvement and give recommendations.

Your client can use these suggestions and take them directly to their current provider to get an immediate benefit if there are changes that are needed.

Phase two of the risk analysis is a deeper dive that looks at the entire company as a whole.

We’re going to look at…

  • The employee benefits program
  • The ownership structure of the company
  • The operations of the company outside of just property and casualty insurance

Phase two will provide alternative options and strategies that may benefit

  • The business owners
  • The business itself
  • And the employees of the business…

…By providing better benefits, programs, and opportunity.

Think of the risk analysis as a spring cleaning for your clients.

If you have a client in mind and would like to get their housekeeping in order, you can take advantage of this complimentary service as a CPA partner of RMC.

To get started, just leave me a comment below and we’ll reach out.

Categories
Risk Management

Do You Have a Plan?

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Do you have a plan when you wake up each morning?

Do you know what you’re going to do that day?

Is there consistency to your routine?

You may have a plan and you don’t even know it.

It’s just rote memorization or how things are just done in your life.

I have a plan every day for instance…

I wake up in the morning, make breakfast for my kids, take a shower, get dressed, take my kids to school, and go to work.

I always try to sneak a cup of coffee in there if I can, but I know what my objectives are.

What is your plan?

Use the same logic when you’re meeting with your business clients.

Your objective should be to help your client this is what you get paid to do.

So how are you helping your client?

Are you providing value?

Are you just helping with the finances and the accounting aspects of their company?

Are you asking questions and learning more about their business so that you can bring more to the table.

Information is power and the more you know the more help you can be.

Having a defined objective with a plan of action as well as working with the right people can push your company to new heights.

Ask questions, provide insight, bring value.

Does this sound like something you can do?

Would you like to learn ways to separate yourself and help provide your clients with options that can not only protect them and save them money, but can bring you additional revenue streams as well?

My objective is to show you how to do this and more.

Give me a call or shoot me an email for more information.

Categories
Health and Benefits

Double Digit Increase Stop Loss

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Imagine sitting with your business clients and being able to tell them…

Guess what, next year you’re not going have a double-digit increase in your health insurance.

You imagine what type of hero you’d be!

Well that’s kind of the method that we have with a medical stop-loss plan.

See the opportunity here is that when you look at the Blue Cross of Blue Shield’s, the HMOs of the world, the fully insured plans, they’re taking everybody in their entire book of business and lumping them together.

So the good is lumped in with the bad…

They’re not allowing those companies that have good claims experience or are diligent in their claims to really benefit from that experience.

See if a company has a healthy workforce, they may have low claims experience and the chances that the current health insurance is letting their profit subsidize those people that aren’t healthy.

With a fully insured plan such as I mentioned before Blue Cross Blue Shield, the crazy thing is the claims experience is a corporate secret they don’t want to share that information because if they do they’ll let you know how much profit they’re making.

That doesn’t allow your business owners, your clients to really be able to participate in cost management and most would like to.

And that allows the carriers to give you those increases year after year with very little explanation.

So by controlling those claims expenses, the company can improve their cash flow in such a way that it can give them substantially similar type of coverages.

But also protect against large catastrophic claims.

See stop-loss is not the same as self-insurance.

Because what you’re doing is use yes you’re controlling your costs upfront but you also have for lack of a better word a protection hat against spiraling claims that go up.

So a well-designed plan can really afford the business owner the healthy businesses and those diligent businesses the ability to help with their cash flow.

It gives them transparency of claims so they know what they’re doing.

So next year, they can say yes we had a good year or no we didn’t have a good year.

So they can really kind of anticipate where the costs are going.

And so we can also do in that circumstances look at what their coverage is and duplicate what they have.

A lot of times the reason people don’t change is because they like what they have.

Well let’s give them a better cash flow for the business owner and give those employees the types of coverages that they want, that they’re used to.

So that nobody has to change.

And again we’ll do this by reducing cash flow and protecting against spiraling claims.

It’s an opportunity you should share with your clients

Categories
Retirement Plans

Different Types of Retirement Plans

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So we’ve got a lot of different types of qualified plans from the Defined Contribution the 401(k)s and Profit Sharing to the Defined Benefit Plans.

The most conservative and guarantees all the benefits to fully-insured 412(e)(3) but we also have for people that want to take a little more risk and invest in the market Traditional Defined Benefit Plans and Cash Balance Plans.

So some of the times people would lean towards a Traditional Plan or a Cash Balance Plan is they want to invest in the market.

In addition, Cash Balance Plans are typically fabulous for companies with more employees and especially a number of owner employees, different partners in the group, and it’s particularly important for groups with owners that have bearing ages.

Can help equalize the contributions rather than typically in a qualified plan the employees with higher wages or the owners with higher wages are typically going to put more contributions in on behalf of a donor employee versus an owner that is a younger age and their contributions can be limited.

So Cash Balance Plans can help equalize these contributions for the owner employees.