April 14, 2020
Report on Executive Compensation Restrictions and the CARES Act from Fulcrum Partners
PONTE VEDRA BEACH, FL — (April 14, 2020) Fulcrum Partners, a leading executive benefits advisory, has just released a new report on some potential consequences of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on executive compensation. As the report noted, the CARES Act, drafted with urgency to respond to the COVID-19 pandemic, lacks definitions and specificity in a number of important areas that pertain to executive compensation issues.
April 02, 2020
Rabbi Trusts in the COVID-19 Economy, a Whitepaper PLUS FAQs
Last week, we shared our most recent whitepaper, “Rabbi Trust: An Important Element of a Nonqualified Executive Benefit Plan during Times of Financial Stress” plus an important blog post update, “COVID-19 and the Unforeseen Emergency under IRS 409A” here on the Deferred Compensation News. In case you missed the link to read or download this report, we’re resharing it here: #ICYMI.
March 26, 2020
Report Published on Rabbi Trusts During Times of Economic Uncertainty
PONTE VEDRA BEACH, FL — (March 26, 2020) Fulcrum Partners, one of the nation’s largest executive benefits advisories, announces publication of “Rabbi Trust: An Important Element of a Nonqualified Executive Benefit Plan during Times of Financial Stress.” The whitepaper, which is available to view online or download as a PDF, provides an overview of nonqualified plan benefit security issues that are important to review during financial or economic turmoil, specifically looking at rabbi trusts as the primary benefit security tools available to nonqualified plan sponsors.
December 20, 2018
Deferred Compensation Plans: 4 Reasons Why They Matter, Year After Year
According to a report published last year by Principal Life Insurance Company, research continues to show that a deferred compensation plan plays a significant role in helping the plan’s participants reach their retirement goals. In fact, progress toward their retirement savings objective continues to be the primary motivation for plan participation. Additionally, reaching retirement savings goals plays the largest role in the employee’s decision-making process regarding how much he or she will contribute. Top 4 Reasons Why Employees Value Deferred Compensation Plans It’s still about saving for retirement. The capacity of deferred compensation plans to help key employees save for retirement continues to be the most important role of the plan and a main reason employees participate. Retirement income source. Half of the participants surveyed, view the plan as a source of income to be spent down during the early years of retirement. More than 20% of participants say that the plan will provide 25% or more of their retirement income. One in ten participants view the plan as their number one retirement income source. Flexibility in deciding how much to defer. The top factors key employees consider when determining an annual compensation amount to defer into the plan are
November 29, 2018
Help Your Clients’ Key Employees Bridge the Retirement Gap with NQDC Plans
Many employers have heard experts say that people need about 80 percent of their pre-retirement income to maintain their standard of living in retirement. Do you (or your clients) know if key employees are on track to hit that mark? In our new report, “Help Your Clients’ Key Employees Bridge the Retirement Gap,” we share some of the ways deferred compensation plans can help boost the retirement savings of key employees and close the gap between the limits for different retirement plans and retirement goals. You can download this report as a PDF here or view it on our website on Fulcrum Partner’s Alliance page. The report is based on information provided by: Principal Life Insurance Company and is shared with their permission. Principal Life is a member of the Principal Financial Group®, Des Moines, IA. Principal.com Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through CapAcuity, LLC; Lion Street Advisors, LLC (LSF) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form ADV disclosures provided to you for more information. VAI/VSI, LSF and BDO Alliance USA are non-affiliated entities
October 12, 2018
Benefits Designed for Employees Provide Advantages for Companies
Employee benefits can do more than provide a great way for workers to live with more peace of mind about the present and the future. Properly structured, employee benefits provide valuable advantages for companies. In our new report, “Protect Your Clients by Helping Them Look Out for Their Key Employees,” we share some of the ways deferred compensation plans, offered as benefits for key employees, help the company as much as they help the employee receiving them. We also include a few things that both employers and employees should know and consider about deferred compensation. You can download this report as a PDF here or view it on our website on Fulcrum Partner’s Alliance page. The report is based on information provided by: Principal Life Insurance Company and is shared with their permission. Principal Life is a member of the Principal Financial Group®, Des Moines, IA. Principal.com Securities offered through Lion Street Financial, LLC (LSF) and Valmark Securities, Inc. (VSI), each a member of FINRA and SIPC. Investment advisory services offered through CapAcuity, LLC; Lion Street Advisors, LLC (LSF) and Valmark Advisers, Inc. (VAI), each an SEC registered investment advisor. Please refer to your investment advisory agreement and the Form
September 13, 2018
A Fact-Finder for a New Plan Steve Jobs once said, “The secret of my success is that we have gone to exceptional lengths to hire the best people in the world.” Job’s peer and competitor, Bill Gates, has stated, “If we weren’t still hiring great people and pushing ahead at full speed, it would be easy to fall behind and become a mediocre company.” Is your organization hiring great people—the best in the world? Are you pushing ahead a full speed? A nonqualified plan that provides benefits for key employees could be just you’re your organization is seeking. Nonqualified plans are designed to help employees save more for retirement than a 401(k) or 403(b) plan allows. In the process, a nonqualified plan gives organizations a leg up in recruiting, rewarding, and retaining top talent and key employees. Benefits for Key Employees This report, published by Fulcrum Partners, defines five questions to ask, that will help an organization determine if a nonqualified plan is right for the company and its key employees. Additionally, it includes a questionnaire to assist in determining the best solutions to help an organization meet its goals and objectives. You can read Key Employee Benefits online, download
September 06, 2018
Recognize and Motivate Key Employees with a Nonqualified Incentive Bonus Plan
Fulcrum Partners has published a new report designed for organizations and their CPAs and financial advisors. The report, titled “Recognize and Motivate Key Employees” explains what a nonqualified incentive bonus plan is and how a plan can help organizations retain and reward employees essential to the company’s success. The report also looks at how experienced guidance helps organizations and their key employees through this process. Nonqualified Incentive Bonus Plan Design The following is an excerpt from the report: “Employers are in control of making the plan their own, because the plan is always based on the specific goals of the organization and unique needs of its key employees. Together, the employer and the financial professional walk through the decisions that need to be made to design a plan that makes sense for the organization: Who participates: Select the groups of key employees (“Top Hat” and “non-Top Hat” employees) to participate in this plan. What can be contributed: Employers can provide one contribution per participant each year with the flexibility to vary benefits by individual employees. What happens with the contributions: Employers can select a reference investment line-up to make available to participants from a broad range of options. In addition,
April 19, 2018
Fulcrum Partners Releases White Paper on Pre-Tax Income Deferral
Important Insights on Pre-Tax Income Deferral PONTE VEDRA BEACH, FL — (April 19, 2018) Five years have passed since the executive benefits advisors at Fulcrum Partners LLC released Advantages to Pre-Tax Deferral of Income in an Uncertain Tax Environment, an in-depth report on the effectiveness of deferring compensation until retirement for the purpose of accumulating wealth and reducing taxes. While much has changed in the U.S. tax code, and on the national and global political and economic fronts, uncertainties of the tax environment remain. Fulcrum Partners Managing Directors Steve Broadbent and Chris Nyland have revisited the topic and are publishing a revised study that reflects today’s economic and tax considerations. The company is making the report available to the public as a downloadable PDF. As Steve Broadbent, Fulcrum Partners Atlanta, explained, “It’s mid-April, and taxes and strategies to defer taxes are fresh in everyone’s mind right now. Many working Americans have wondered whether the practice of deferring compensation is still sound, in view of changes to the tax code and the economy. Fulcrum Partners felt it was important to provide our marketplace with insights to help tax payers evaluate the practice of deferred compensation as part of long-term financial planning.
April 12, 2018
Nonqualified Defined Contribution Plans
Are you looking for a guide to providing unlimited tax deferred contributions for select employees? A nonqualified defined contribution plan can be a valuable tool in providing long-term cash accumulation benefits to select employees of a company. As report author, Monte Harrick explains: A defined contribution NQDC plan is an attractive alternative for companies looking for ways to attract and retain the employees who are leading and determining the future of the company.” Read the case study report: “Nonqualified Defined Contribution Plans: Providing Unlimited, Tax Deferred Contributions for Select Employees,” to learn how one employer put this strategy to work to benefit his team and his company’s future. More about Monte Harrick, Managing Director Fulcrum Partners Los Angeles: Before joining Fulcrum Partners LLC as a Managing Director, Monte Harrick was affiliated with a Los Angeles-based executive benefit advisory for more than nine years. As a Managing Director, he specialized in working with large corporations in attracting and retaining top talent, specifically as related to executive benefits. His responsibilities included analyzing and consulting with corporations on the design, funding, and administration of leading nonqualified benefit plans and welfare benefit plans. Monte Harrick is affiliated with Valmark Securities, Inc. Securities offered through Valmark Securities, Inc. Member