Qualified Plans

Designed to Benefit You Today and Tomorrow

A significant advantage for a business owner is the ability to leverage business dollars to fund personal benefits. Business dollars can be deployed to help improve your cash flow today, create retirement income and provide your family with death benefit protection. To make an informed decision on the ways to use your business dollars there are a number of concepts you may want to consider.



Do You Have a Retirement Shortfall?

Whether you are considering a program for yourself or as a benefit for your key people, understanding the potential retirement shortfall is a vital first step in determining whether to establish an executive benefit program.

Tax Rate Roulette Understanding the Impact of Tax Rate Changes

Total accumulation amounts may be impacted depending upon whether the asset is growing on a taxable, tax deferred or tax free basis.

Selecting a
Qualified Plan

Executive benefit plans, sometimes called non qualified plans, may provide additional funds for your family’s protection or for your retirement.  These programs may also help you provide valuable benefits to your key people in a tax and cash flow efficient manner.

Do You Have a Retirement Shortfall?

Whether you are considering a program for yourself or as a benefit for your key people, understanding the potential retirement shortfall is a vital first step in determining whether to establish an executive benefit program.

Understanding the Difference Between Taxable, Tax Deferred and Tax Free Assets

Total accumulation amounts may be impacted depending upon whether the asset is growing on a taxable, tax deferred or tax free basis.

The Use of Executive Benefit Plans to Help You Acquire Personal Benefits

Executive benefit plans, sometimes called non qualified plans, may provide additional funds for your family’s protection or for your retirement.  These programs may also help you provide valuable benefits to your key people in a tax and cash flow efficient manner.



Where will your retirement funds come from?

Retirement Funding Sources

If you ask the average business owner where the money for their retirement will come from, chances are their answer will include three or four sources.



Social Security

Today the insecurity of Social Security is in the spotlight more than ever before. But as a successful business owner, we know that you will likely not be relying just on SS for retirement.

Personal Savings / Non Qualified Plans

Non qualified plans may be programs that you are receiving through your business – such as deferred compensation, split dollar or bonus arrangements.

Sale of Business

Do you know the value of your business today, in 5 years, at your retirement?  Who is going to buy your business? Do you have a formal succession plan?

Qualified Plans

Do you have a qualified plan?  Have you considered one?  

Social Security

Today the insecurity of Social Security is in the spotlight more than ever before. But as a successful business owner, we know that you will likely not be relying just on SS for retirement.

Personal Savings / Non Qualified Plans

Non qualified plans may be programs that you are receiving through your business – such as deferred compensation, split dollar or bonus arrangements.

Sale of Business

Do you know the value of your business today, in 5 years, at your retirement?  Who is going to buy your business? Do you have a formal succession plan?

Qualified Plans

Do you have a qualified plan?  Have you considered one?  



What will your retirement cost?
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What Will Retirement Cost?

There is a multitude of factors to take into consideration when planning for your cash flow needs in retirement.

A good place to start is determining what you want your life to look like in retirement and then figuring out what type of savings it will take to make your retirement dream a reality. Consider the following:



Lifestyle

Do you want to continue living your current life style?

Family

What about your family and a desire to help kids and grand kids out?

Housing

Will your housing needs stay the same or change and cost less, the same or more?

New Costs

What new costs will you have to pay?

Lifestyle

Do you want to continue living your current life style?

Family

What about your family and a desire to help kids and grand kids out?

Housing

Will your housing needs stay the same or change and cost less, the same or more?

New Costs

What new costs will you have to pay?



Next Steps
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Next Steps

As you plan for your retirement, there are a number of ways to analyze your Retirement and Risk requirements.



Set Your Goal Amount

You can estimate the amount you and your family need to have in place.

Percentage of Income

You may solve for your retirement and risk requirement based on a percentage of your current income.

Maximize Efficiency and Total Amount Available

What ever method you use – you want to be sure that your program is cost and tax  efficient and that you minimize where you are losing funds without increasing financial risks for you, your family and your business.

Set Your Goal Amount

You can estimate the amount you and your family need to have in place.

Percentage of Income

You may solve for your retirement and risk requirement based on a percentage of your current income.

Maximize Efficiency and Total Amount Available

What ever method you use – you want to be sure that your program is cost and tax  efficient and that you minimize where you are losing funds without increasing financial risks for you, your family and your business.



Calculate Your Retirement Needs
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National Life Group® is a trade name of National Life Insurance Company, Montpelier, VT, Life Insurance Company of the Southwest, Addison, TX and their affiliates. Each company of National Life Group is solely responsible for its own financial condition and contractual obligations. Life Insurance Company of the Southwest is not an authorized insurer in New York and does not conduct insurance business in New York.



This information is intended to be educational in nature, and does not constitute an endorsement or recommendation of any financial product, service or the suitability thereof for you. Calculator results are based on the assumptions you provided. The information provided is not intended to supply professional tax, accounting, financial or legal advice, for which you should seek a personal consultation with a professional provider of such services. This information does not take into account differences between various savings vehicles which may include eligibility requirements, sales charges, surrender charges, tax penalties or mortality and expense charges. It also does not take into consideration lower maximum tax rates on capital gains or dividends which might affect the taxable strategy.
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