Here at Alarcon Financial Strategies, we offer a wide array of services to help business owners address their financial needs at every stage of the business life cycle. Taking into account their personal values and financial goals, we create and execute customized strategies to help entrepreneurs meet their objectives. Some of our key services are detailed below.
Executive Benefits
In today's volatile economy, it's more important than ever to attract and retain key employees to help your business succeed. Yet, as a business owner, you face unique challenges when looking for a bonus compensation package. While a comprehensive plan might work for a large organization, you may be looking for a solution that is easy to implement and maintain. One simple way to reward your key employees for their current contributions and also provide future incentives is by offering them an executive bonus arrangement. An executive bonus arrangement is a simple, non-qualified plan that allows you to offer your key employees bonus compensation that has both immediate and long-term benefits for them, their families, and your business.
Succession Planning
Succession planning allows owners to leave their business in their own time frame while preparing their company to be transferred to family members, key employees, an outside party, or even a charity. This must be done in a way that achieves personal financial security while maintaining harmony and realizing maximum value for the business.
Key Person Insurance
A key employee is generally highly paid, responsible for management decisions, has a significant impact on sales, and has a special rapport with customers and creditors. A key employee may or may not be an owner. Key person life insurance helps reimburse a business for economic loss when a key employee dies. The insurance covers the life of an employee who is critical to the success and profitability of the business. Key employee life insurance is not a specific type of policy, but a way to use life insurance to offset a business risk.
Funding Buy-Sell Agreements
A buy-sell agreement specifies how business interests will be transferred, to whom, and under what circumstances. In a cross purchase buy-sell agreement, each business owner agrees to buy the business interests of an owner who dies, becomes disabled, retires, or otherwise leaves the business. These plans are frequently funded with life insurance and disability buy-out insurance. A cross purchase agreement may be appropriate any time there is more than one business owner.
Funding Deferred Compensation
Deferred compensation is a written agreement between an employer and an employee where the employee chooses to have part of his or her compensation withheld by the company, invested on their behalf, and distributed back to them at a pre-determined point in the future. Deferred compensation can be used as a flexible way to attract and incentivize key employees.
