Estate Planning

Developing a plan to transfer all of your property from one generation to the next or within a generation.

Charitable Giving: A gratuitous transfer of assets to charitable, religious, scientific, educational and other specified organizations. If the gift falls within categories designated by the law, a charitable deduction may be taken for income, gift, or estate tax purposes.

Retirement Planning

Funding using various vehicles to cover the future estimated costs and financial needs and desires for retirement.

Managed Accounts: An account for which the holder gives his/her broker or someone else the authority to buy and sell securities, either absolutely or subject to certain restrictions.

Education Funding: Funding using various vehicles to cover the future estimated costs of education.

IRAs

There are two major types:

Regular IRA (Individual Retirement Account): An account to which an individual can make annual contributions of 100% of earnings up to $2,000. These contributions are tax deductible for workers who are not covered by an employer-sponsored retirement plan regardless of income, or if they are covered, whose taxable income does not exceed certain levels

Roth IRA: The Roth IRA was enacted under the Taxpayer Relief Act of 1997. A Roth IRA may be established by a person who has earned income, but their modified adjusted gross income cannot exceed the allowable limit. Roth IRA contributions are not tax deductible, but distributions, including earnings, can be tax free if certain circumstances exist. Generally, contributions must satisfy a five-year waiting period and have a triggering event.

Voluntary Benefits

Managed Care Medical Benefits: A health care system that delivers appropriate health care services to covered individuals by arrangements with selected providers.

Health Maintenance Organization (HMO): An HMO is a prepaid medical service plan that provides a wide range of comprehensive health care services for a specified group (members) or individuals at a fixed periodic payment.

Dental Insurance: An individual or group insurance plan that, depending on the plan, will pay for certain costs of normal dental care as well as damage to teeth from an accident.

Group Life Insurance: Life insurance, usually without medical examination, on a group of people, usually related by employment under a master policy.

Fixed & Variable Annuities

An annuity where the contract value fluctuates with the market performance of a securities portfolio. The contractholder can receive income payments immediately or at a future time that vary with the market value of the underlying portfolios. The income payment may also be received as fixed payments that do not vary with market performance.

Mutual Funds

A pool of stocks, bonds, or other securities managed by a professional investment company. Investors purchase shares of interest in the pool.

Business Continuation Planning

Four major components:

Business Income Insurance: Provides protection for business owners against the economic loss incurred at the death or disability of key executives and or other key employees. Business insurance is also designed to stabilize and maximize the value of a business by assuring a practical plan for business owners to be bought out and receive fair value for their interests at the death of one or more of the owners.

Buy-Sell Agreements: An agreement made by the part-owners of a business to purchase the interest of a disabled or deceased owner. Values of the owner's share of the business and the terms of the buying and selling are established before death or at the beginning of a disability.

Section 303 Stock Redemption: A corporate purchase of its stock that makes exchange treatment possible even if the transaction would not meet the safe harbor rules of IRC 302.

Key Employee Insurance: Insurance designed to protect a business firm against the loss of income resulting from the death or disability of a key employee.