blueprint for business 10 minute overview

Cn55693072010 © 2008. ING North America Insurance Corporation

BLUEPRINT FOR BUSINESS: KEEP WHAT YOU’VE BUILT

Business Protection Planning


YOU’VE INVESTED A LOT IN YOUR BUSINESS

Time

Money

Passion

YourBusiness


TWO LEVELS OF DECISIONS

Level One: Day-to-Day Operations

Keep the doors open Attract Customers Make Sales Minimize Costs


TWO LEVELS OF DECISIONSLevel One: Day-to-Day Operations

Level Two: Strategic Planning

long-term direction long-term focus


TWO LEVELS OF DECISIONS

Hard to Find Time To Make Strategic Decisions

Two Reasons To Keep Current

Your Business Is a Valuable Asset

Your Business Can Help Increase Your Personal Net Worth


I CAN HELP

I can help you with some “Level Two” decisions

My experience can assist you:

Protect your business’ value

Use business dollars to build your personal net worth


PROTECTING YOUR BUSINESS’ VALUE

Your business is like a “goose that lays golden eggs”

You protect the goose so the golden eggs can keep coming

Your business interest is likely your most valuable asset

A decrease in its value could have a big impact on your life


PROTECTING YOUR BUSINESS’ VALUE

Protecting your business is a four-stage process:

1. Determine how much it is worth

2. Identify the events that could harm it

3. Develop effective contingency plans for these threats

4. Back up your plans with adequate resources


PROTECTING YOUR BUSINESS

Plan for normal business calamities

Plan for unexpected events: An owner’s death An owner’s disability Death or disability of a

key employee Losing a key employee

to a competitor


IF SOMETHING HAPPENS TO YOU, DO YOU WANT TO LEAVE YOUR FUTURE AND YOUR BUSINESS’ FUTURE

TO CHANCE?


SUPPOSE YOU WANT TO (OR HAVE TO) RETIRE.

Do you want to be able to create additional resources by selling your interest in the

business?


PROTECTING / MOTIVATING YOUR KEY PEOPLE

You probably have special employees whose skills are critical to long-term profitability

Your economic security may depend on their commitment to stay with the business

The unexpected loss of a key employee can reduce business value and profits for years

Key employees are among valuable assets


SMART BUSINESS OWNERS CAREFULLY MANAGE KEY EMPLOYEES

There is a five step process:

Identify your key employees

Quantify the value they bring to your business

Understand their individual wants and needs

Customize individual incentive packages for them

Fund these incentives to recover the costs


Good Incentive Plans KeepKey Employees Happy & Productive

A well-designed incentive plan does these things:

D̶ Recognizes the key employee’s contributions

D̶ Rewards superior performance

D̶ Increases the rewards the longer the key employee continues to produce

D̶ Recovers some or all of the plan’s costs


Good Incentive Plans KeepKey Employees Happy & Productive

Commonly used key employee incentives include:

D̶Section 162 Bonus Plans

D̶Restricted Bonus (REBA) Plans

D̶Supplemental Executive Retirement Plans (SERPs)

D̶Endorsement Split Dollar Plans

D̶SERP / Split Dollar Combination Plans

D̶Split Dollar Loan Arrangements


I Can Help Your Protect Your Business’ Value

I can help you get the most for the time, money and emotion you’ve put into your business

I can help you protect its value:

D̶Review alternatives for estimating its current value

D̶Test your contingency plans to make sure they work

D̶Analyze alternatives for funding your plans

D̶Help you keep your plans up-to-date


Next Steps

Wise business owners hope for the best, but they plan for the worst

If something happens, they are prepared

Where would you like to start?

D̶Review current business protection plans, or

D̶Protect against the loss of key employees


Disclaimer: “Securities offered through HBW Securities LLC, Member

FINRA/SIPC, 3355 Cochran St., Suite 100, Simi Valley, CA 93063, (800) 473-3856. HBW Insurance & Financial Services, Inc. is a separate entity from HBW Securities LLC. HBW Securities LLC does not give legal or tax advice. Rudy Garcia is a registered representative dba Rivanna Woods Associates, LLC” “Rivanna Woods Associates, LLC is a separate entity from both HBW Insurance & Financial Services, Inc. and HBW Securities LLC.”

“The information provided is not intended as legal or tax advice and may not be relied on for purposes of avoiding federal tax penalties. All individuals, including those involved in the estate planning process, are advised to meet with their tax and legal advisors. The individual sponsoring this (advertising) will work with your tax and legal advisors to help select appropriate product solutions. The publisher does not assume liability for financial decisions based on the contents.”

Presented by Rudy Garcia

802 Rivanna Woods Drive

Fork Union VA 23055

Email: [email protected], Phone: 850-776-9209


DISCLOSURES:

Neither ING nor its affiliated companies and representatives give tax or legal advice. You should always consult with your own tax and legal advisors for advice regarding your individual situation.

These materials are not intended to be used to avoid tax penalties, and were prepared to support the promotion or marketing of the matter addressed in this document. You should seek advice from an independent tax advisor.

Life insurance products are issued by ReliaStar Life Insurance Company, ReliaStar Life Insurance Company of New York (Woodbury, NY), and Security Life of Denver Insurance Company. Variable life products distributed by ING America Equities, Inc., 1290 Broadway, Denver, CO 80203. Only ReliaStar Life Insurance Company of New York is admitted, and its products issued, within the state of New York. All are members of the ING family of companies.

blueprint for business 10 minute overview

Documents

hbw insurance

hbw securities llc

good incentive plans

key employee

financial services

decisions level

valuable asset

separate entity