Business Planning for Retirement, Recruitment, and Succession
Your business is more than the services and products it provides. It is an integral aspect of the life and livelihood of the owners and their valued employees. Just as take advantage of personal life insurance to protect the futures and fortunes of our loved ones in the case of a catastrophic event, it is imperative that business owners have a plan for the future of their business should anything happen to them or their employees that could impact the future of the company and the ability for it to maintain its solvency. Business planning for retirement, recruitment, and succession is how a business owner secures the future of their company, no matter what that future may be.
Life Insurance Policies to Protect and Recruit Top Talent
Beyond protecting and enhancing the financial health of your employees and owners, life insurance policies that are geared towards businesses and corporations can be combined with other benefit packages to attract top talent at a cost savings for the company. “Golden Handcuff” policies that provide lower out-of-pocket costs for the employee while allowing the company to deduct the cost as a salary expense.
The truth is, there are so many win-win policy structures when it comes to life insurance vehicles for businesses, that different policies for different levels of employees can help secure the business well past any loss. From wealth accumulating executive bonus structures to split-dollar group carve-outs that protect everyone, life insurance is an essential part of any business plan.
Planning for Retirement and Succession
There are many questions to consider at the beginning stages of crafting your business plan.
- Do you have a retirement plan and if so, how much income will you need at that time?
- Will cash flow from your business be a part of your retirement income?
- If something happens to you as an owner, or if you retire, do you have a plan in place to name your successor?
- Is your business covered in such a way as to withstand the loss of a significant employee or owner?
- Are there benefits that your company provides that you will require in retirement?
Having a plan of succession in place will not only provide peace of mind for you and your employees, but it will allow you to make informed decisions about your retirement and what happens when you are no longer with the company.
Make a Plan and Let Your Business Thrive
By investing time and resources into business planning, you will free yourself up to focus on the growth of your business today. In addition to securing favorable taxation scenarios for your company, you will be able to offer employees the benefits they need to reduce turnover and remain as top producers for years to come.
So take the time and meet with a professional advisor to help craft policies and plans that will see your business thrive into the future and benefit your employees and their families long after you’ve moved on to the next chapter in your life. A plan for tomorrow is peace of mind for today.
