Broker Check

10 Business Considerations if you have a very high income

  1. Does your company have benefit plans that discriminate against its key employees, including you, and is that easy to fix?
  1. If you earn more than $500k, does your group disability benefit plan pay only 60% of your pre-tax or after-tax income, or is there a cap?
  1. As a business owner, have you protected your firm’s profitability by designing strategies to prevent another company from hiring or stealing your most critical key employees?
  1. How would losing your rainmakers effect your profitability and your personal income?
  1. If any of your key employees die or become disabled, would the loss of profitability destroy the firm or its future survival?
  1. Does your 401k plan “still” have investment fees that are excessive (a national problem), harming the growth of any executives’ retirement assets, and which will not create enough retirement income as a percentage of current earnings?
  1. Does your succession or buyout plan and its funding cover your actual interest in the firm, if you die, get disabled permanently, or just quit?
  1. When you pass, will your current Life insurance create more taxes, or have you set them up outside of your estate in a trust to avoid that issue?
  1. If you are charitable, do you have you “an endowed gifting strategy,” so that your special interests know that they will get significant funds in the future?
  1. Are your will, trusts and other legal documents still current? Will they still do what you designed them to do, or have you had major life events that necessitate an update? Do you have the right trustees today that clearly understand your personal and family objectives?