For many years tax laws discriminated against business owners by structuring laws that hindered their ability to do much creative personal planning through their business. Over the last few years this situation has changed for the better as Congress has passed legislation that benefits business owners without detriment to employees.
However, most business owners we meet are not aware of some of these new laws, or have only heard of them in passing. Our job is to rigoursly analyze your goals and help you discover how to leverage your company for your personal financial planning needs, all within the framework of existing tax laws.
Leveraging Group Benefit Plans
Tax laws have become friendlier in recent years to business owners, which has allowed more creative planning options to shelter large contributions in qualified retirement plans. More recent legislation has created unique health plans that are attractive to business owners, as well as unique tax advantaged funding for the huge financial liability of potential future long-term care needs. Kompass Financial can help you make sense of ever-changing laws.
Succession Planning
Sometimes we want to avoid reality, but the reality of taxes and death are guaranteed. And just as someday you’ll leave this life (willingly or unwillingly) you will also leave your business. The question is if you have properly structured affairs of your business to assure is future success. Unfortunately, most business owners have not. If this is your case, we’ll help you devise a plan. If you have a plan in place, congratulations! We’ll help you make sure it is current and addresses any changes in our laws or your family and business status.
Key Person Insurance Plan
What are you most valuable assets? Your building, computers, or vehicles? In reality, you and your employees are your business’s most valuable asset. You have insurance to protect most of your assets (building, equipments, etc), but have you protected the assets that are most crucial to the survival of your business? In any business there are key employees who are most responsible for its success, and the loss of one of these employees can have an impact on the survival of your business. Insuring them, as you do other assets, is common sense planning.
Deferred Compensation
In some instances, you as a business have contributed the maximum amount possible by law to Qualified Retirement Plans (401(k) Plans, This is where having Kompass Financial investigate the use of various types of Deferred Compensation plans is appropriate.
