FDR financial professionals create Business Succession Plan for effective transfer of ownership; enhances
quality of Employee Benefits and 401(k) Plan; develops Financial and Retirement
Plans for business owner.†
OVERVIEW/PROFILE OF CLIENT
What does the client look like (i.e. net worth and location, tax status and other pertinent facts that helped identify the appropriate solution)?
The client is a local manufacturer and distributor with nearly 50 years of experience and more than 200 employees.
What does the client need?
The owner of the business originally contacted FDR Financial Group, Inc. with a need to plan the transfer of the business to the owner's children. Additionally, the owner had a need to help reduce the cost and enhance the quality of benefits provided to employees. There was also a need to improve the communication to the employees regarding corporate benefits available to them, specifically with their retirement plan.
SITUATION
What services does the client require?
- Create Buy-Sell Agreements for the Owner's Children.
- Review and Improve costs and benefits of company's Group Health Insurance, Group Life Insurance, and Group Disability Insurance.
- Re-design and manage the company's 401(k) plan, and create an effective method of communicating the plan and its benefits to employees.
SOLUTION/RESULTS
The Advisor's Answer - What did the FDR advisor do to meet the needs if their client?
FDR Financial Group, Inc. provided Life and Disability Insurance to fund the Buy-Sell Agreements which were created to transfer the ownership of the business to the owner's children. FDR Financial Group, Inc. also provided financial and estate planning for the owner and the children, who subsequently bought the business.
FDR Financial Group, Inc. helped reduce the cost of the Group Health Insurance and other benefits.
To improve the communication process with employees, FDR Financial Group, Inc. began conducting meetings with employees during the company's 401(k) enrollment period.
What happened based on that solution?
The owner of the business was so pleased with the quality service provided for his company that he requested personal advice for his own financial and retirement planning. Additionally, the children who bought the business also needed personal financial planning, which was provided by the advisors at FDR Financial Group, Inc.
Due to the fact that FDR Financial Group, Inc. has the in-house expertise of an Estate Planning and Tax Attorney, a Certified Public Accountant, a Certified Financial Planner, and a Chief Life Underwriter, the client's goals were met in all areas. FDR Financial Group, Inc. advisors coordinated planning with the client's local CPA firm and helped insure all documents, ownership of insurance policies, and the funding of trusts were conducted properly. FDR Financial Group, Inc. advisors continue to effectively monitor the company's group benefits plans.
†This case study results is for illustrative purposes only and should not be deemed a representation of past or future results.