M&K Financial Services
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How we coordinated retirement planning with succession planning.
Problem:
The owner of a successful business turned to M&K Financial Services to create a strategic pension plan for the business. In reviewing the company's benefits, the M&K Financial Services Adviser discovered that the company had very a limited business succession plan in place, potentially jeopardizing the longevity of the business.
Solution:
The company adopted a defined benefit pension allowing deductible contributions in excess of $100,000 for each senior partner. Through what is referred to as "permitted disparity," the cost of employee contributions was no larger than other plans being considered. Contributions made to the plan for senior partners was then considered when designing the overall succession plan. The M&K-FS Adviser worked closely with the owner and his financial team to develop a strategic and systematic transition plan that would protect the continuity of the company. This plan accounts for the well being of key partners and the company in the event that the partners pass on earlier than expected, live longer than expected, or become disabled along the way. Specifically, a life insurance plan was put in place, providing an investment feature that will continue to fund itself if a participant became disabled.
Securities offered through AMERICAN GENERAL SECURITIES INCORPORATED. Member of NASD and SPIC, 2727 Allen Parkway, Suite 290, Houston, TX 77019 - phone # 800-247-4669. Member of the American International Group, Inc. M&K Financial Services LLC is a separate entity from any member of the American International Group, Inc. Money management services are offered through M&K Investment Advisers LLC, an Independent Registered Investment advisor.
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