MKA Executive Planners Blog

After Tax Plans: An Alternative to Deferred Compensation Plans

Posted by Barry Koslow on Fri, Mar, 24, 2017

After tax supplemental compensation plans funded with life insurance offer a hybrid arrangement that reduces the complexity and expense associated with non-qualified deferred compensation plan. These plans are a great benefit for a company to offer to non-owner key executives to retain and reward them for their valuable services. They are especially attractive in pass through entities such as Subchapter S corporations and tax exempt organizations.

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Tags: Life Insurance, Deferred Compensation Plans, Executive Compensation, Supplemental Compensation Plans, After Tax Plans

The Executive Disability Protection Fallacy

Posted by Barry Koslow on Thu, Mar, 09, 2017

Executives generally are not aware that they have shortfalls and gaps in their broad based group long term disability coverage.  This applies to both the size of the monthly benefit and the language in the contract that the insurer uses to accept or deny claims.

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Tags: Disability Insurance, Executive Disability, Long Term Disability, Disability Insurance Limitations, Disability Insurance Exclusions, Disability Income Protection

The Section 457 Puzzle…have you found the missing piece?

Posted by Barry Koslow on Fri, Feb, 24, 2017

Substantial risk of forfeiture, exposure to claims of creditors, large balance sheet accruals and embarrassing lump-sum payments on the front page of your local paper. Does this sound like an optimal retirement accumulation plan for your highly compensated physicians and executives?

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Tags: Supplemental Retirement Plan, Physician Supplemental Plans, 457(f) Plans, 457(b) Plans, Non-Qualified Plans

Premium Financing Is More Than It Seems: 5 Critical Questions

Posted by Barry Koslow on Thu, Feb, 23, 2017

If you are a person with a need for large amounts of life insurance, whether for tax planning (income or estate), liquidity planning, estate balance or income, here are 5 questions you should investigate before entering into a transaction.

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Tags: Life Insurance, Premium Financing, High Net Worth Planning, Funding Life Insurance Purchases

IRAs and the Need for a Trust

Posted by Barry Koslow on Fri, Feb, 03, 2017

Not a lot of assets?

Got a big IRA account?

No use for a Trust?  Wrong!

Most everyone is familiar with the rule that you must take an actuarially determined “required minimum distribution” from your Individual Retirement Account” in the year you turn age 701/2 and each year thereafter.

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Tags: Individual Retirement Accounts, Qualified Plan Trusts, IRAs, IRA Taxation, Retirement Plan Trusts

A Financial Planning “Oops”

Posted by Barry Koslow on Thu, Dec, 22, 2016

While driving to see a client not too long ago, I heard a commercial for a local investment advisor on a local radio station, ostensibly a recording of some thoughts on how his firm might plan for a young couple in the event the husband was to die in the near future.  Both husband and wife were employed. They had two young children.  

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Tags: Life Insurance, Disability Insurance

New Long Term Care Funding Options Compared to Government Programs

Posted by John Yagjian on Fri, Oct, 28, 2016

Long Term Care Insurance has come a long way since its inception.  It is no longer a “use it or lose it” proposition, and the sources of funding for long term care coverage now include the cash value of existing life insurance and deferred annuities that may no longer be needed.

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Tags: Long-Term Care, Healthcare

8 Ugly Traps in Section 457(f) Plans

Posted by Barry Koslow on Thu, Oct, 20, 2016

Section 457(b) and 457(f) plans are the most common supplemental retirement accumulation plans utilized by tax exempt organizations.  While many provisions apply to both models, the rules applicable to 457(f) plans are particularly onerous.  Here are 8 ugly facts about Section 457(f) plans.

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Tags: Supplemental Retirement Plan, Retirement Planning, Executive Compensation, Physician Supplemental Plans, 457(f) Plans, Not for Profit Supplemental Plans

Term or Permanent Insurance – Which is the Right Choice for You?

Posted by John Yagjian on Wed, Dec, 30, 2015

Life insurance has many tax favored advantages, the most significant of which are the potential tax-free cash accumulation, tax-free withdrawals and tax-free death benefits.  In addition, in the event of an untimely death, the beneficiaries can use funds from a life insurance policy to maintain their current lifestyle, for retirement purposes, funeral and burial expenses, probate, estate taxes, daycare, and any number of everyday expenses.  Funds can be used to pay for a beneficiary’s education or to pay debts or a mortgage.  Recent product innovations include a long term care benefit rider which allows the owner access to policy cash values or death benefit for long term care needs of the insured.

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Tags: Life Insurance

Let Us Help You Protect Your Life Insurance

Posted by John Yagjian on Fri, Oct, 02, 2015

The one thing I know for certain about life insurance illustrations is that the non-guaranteed assumptions are always wrong.  The economy does not proceed at a steady growth rate, yet that is what illustrations show for non-guaranteed assumptions.  Life Insurance is an important financial instrument that needs to be monitored and reviewed on a regular basis.  Without proper review and adjustment, if necessary, the policy owner may be faced with unexpected “sticker shock.”

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Tags: Life Insurance