There is a wide array of investment products and strategies available to implement a financial plan. And plenty of opinions on which ones are best and which ones to avoid. Our process for individual wealth management is straightforward: 

 

• Comprehensive consultation for both parties to get to know each other

• Follow-up appointment for a presentation

• Implementation of agreed-upon strategies

• Regular reviews

It is essential that a consultation with the business owner takes place before deciding on what type of plan to implement. Once the plan is agreed on, an employee presentation is given, followed by one-on-one interviews to help each employee determine their appropriate allocation.

​

Nearly all retirement plans are considered; 401(k)s, Profit Sharing, Simple IRAs, Defined Benefit Plans, SEPs, and IRAs. We work with the employer to evaluate the investment options that will be offered inside of the plan, as well as tax savings, ease of administration and controlling fees.

Springberg Wealth Management offers financial and insurance guidance for businesses in a number of areas. Our goal is to help business owners identify opportunities and risks associated with being an owner and then implement strategies to address these. Some examples of programs are listed below:

​

Key Man Plans: Many businesses have employees that are essential to their success. It is often in the business’s interest to offer an extra incentive to that “Key” employee, yet because of discrimination laws, they are unable to do so with a retirement plan. This is where a Key Man Plan comes into play. They can be designed to offer a benefit if an employee works for a certain number of years or to pay a life insurance claim to the employer and/or the employee’s family if they should pass away. This offers the employee the incentive to work for the employer for reasons beyond just salary and gives the employer stability in their business. In addition, if death proceeds are payable to the employer, the monies can be used to stabilize the company while a replacement is sought. Legal advice from an attorney is prudent.

​

Buy/Sell Agreements: When there is a partnership or more than one owner of a closely held business, there is the concern of what would happen if one of them should pass away. How would the surviving partner(s) come up with the money to buy out the deceased partner's spouse or other heirs? A buy/sell agreement tries to cover all bases if a partnership or corporation should break up. We focus on early death or disability issues by implementing life and disability insurance solutions. Ownership or partners take out policies on each other so that there is an immediate cash infusion to solve this problem.

​

Example: Two partners own a business worth 1 million dollars. They each take out a life insurance policy on the other for $500,000. If one should pass away, the $500,000 death benefit is utilized to pay off the deceased partner’s spouse and the surviving partner now owns 100% of the company. Again, typically legal advice is sought to draw up the actual agreement.

We believe that thoughtful consideration should be given to our client's assets to facilitate their transfer whether to their spouse, children, other family members, or charity of choice. This transfer should be done in a manner that reduces the tax liability as much as possible.

​

After determining a client’s net assets, we review the estate to determine what methods would most benefit their eventual ease of transfer and sensitivity to tax liability. If the estate is in excess of certain limits, estate taxes may be owed. Often an attorney is brought into the process to determine if a trust(s) would be beneficial.

​

Every client is unique and the solutions we propose correspond to this. Typically, the methods outlined below are considered, although there are more sophisticated concepts available when required.

​

Trust(s)- These can be revocable, irrevocable, charitable or other variations.

 

Gifting- Estates can be reduced by completed gifts being made during one’s lifetime. There are annual limits that one person can gift to another to avoid any tax consequences. Gifts to certain charities are unlimited. 

​

Life Insurance: Life insurance creates an immediate pool of cash for survivors and is typically free from income tax. Further, if put inside of an irrevocable trust, it can be estate tax-free.

​

Investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance is no guarantee of future results. Please note that individual situations can vary.