Financial Solutions
Financial Planning A dynamic approach to helping you and your family reach your financial goals We use financial planning tools and resources to help you and your family reach your financial goals. We provide expertise in the six areas with the biggest impact on your personal financial situation, and develop plans and strategies to help you succeed. We help you identify where you want to go, and show you how to get there, turning financial planning into a powerful force for you. 
Understanding your current financial situation is one of the most important aspects of doing financial planning. Your current assets, liabilities, liquidity and cash flow will affect almost every other short or long-term goal that you have. Many people don’t realize the long-term impact of the financial decisions they make on a day-to-day basis. Your financial needs in the event of a death or disability will be closely related to your current situation, and areas such as income tax liability, asset allocation, estate tax liability, ownership status of assets, and control of assets are all inter-related. If you already have a good understanding of your current financial situation, congratulations! If you could benefit from a greater understanding of where you stand today, there are numerous ways that you can begin. Use worksheets to calculate your net worth and track your cash flow. Personal finance programs such as Quicken™ or MS Money™ are also helpful in gaining a better understanding of where you stand today. For help in identifying strengths and weaknesses in your current financial picture, or for help in developing a comprehensive financial plan, select the "Contact Us" option located in the main site menu at the top of the page. Our Financial Advisors are just a click away! Protecting your family from major financial risks is one of the cornerstones of any sound financial program. Life insurance, disability insurance, health coverage and long-term care insurance should all be evaluated to help minimize your exposure to financial risk. By working with a knowledgeable Financial Advisor, you can develop a comprehensive approach to assessing your need for additional coverage. To help you get started, click on the Financial Calculators link located in the main site menu at the top of the page. While there are more complicated systems for calculating your insurance needs, this provides you with an indicator of whether you should consider increasing your life insurance coverage. Investment Planning Managing risk in your investments Risk refers to the chance that an investment's value or return will be lower than expected. Investments with potential for greater loss are viewed as riskier than those with a lesser chance of loss. However, the risks associated with investments differ in the long-term compared to the short-term. In the long-term, so-called "risky" investments may offer a greater chance of reaching a financial objective. Risk Levels In the long-term, the picture changes. Based on historical stock performance, risk faced by stocks declines over the long-term. The risk faced by government bonds increases, however, since their long-term returns they offer are frequently outperformed by other types of investments and may not always keep up with inflation and taxes. The risk and return of any one investment should be viewed in relation to your total investment portfolio — the combination of investments you’re making. If you hold just one or two accounts, you are more exposed to risk than if your money is more widely diversified. Diversification means investing in instruments which behave differently during a given economic situation or time period. A Financial Advisor can help you determine an appropriate level of risk and diversification for your financial goals, profile and time horizon. Talk to an advisor or representative today about developing a customized investment strategy. Tax planning As Ben Franklin aptly pointed out over two centuries ago, taxes are one of the certainties of life. Our challenge is to use the provisions of the tax code to our advantage wherever possible. or example, income can be from earned (employment) or unearned (investment) sources, and can be taxed today, taxed later (deferred) or not taxed at all (exempt). How we decide to hold our assets and receive our income will have the greatest impact on our income taxes. Everyone knows that the U. S. tax code is extremely complex. Many types of assets (tax-exempt bonds, IRAs, annuities, and cash-value life insurance to name several) offer significant tax advantages. Working with a financial advisor who understands the tax implications of your financial decisions will help assure that you are making those decisions with all the pertinent information, often resulting in significant tax savings. For help in identifying strategies to reduce your taxes, or for help in developing a comprehensive financial plan, contact one of our knowledgeable Financial Advisors today. This information is a general discussion of the relevant federal tax laws. It is not intended for, nor can it be used by any taxpayer for the purpose of avoiding federal tax penalties. This information is provided to support the promotion or marketing of ideas that may benefit a taxpayer. Taxpayers should seek the advice of their own tax and legal advisors regarding any tax and legal issues applicable to their specific circumstances Retirement Planning Plans help address the changing concept of retirement Whatever your plans for retirement may be, you have a valuable tool at your fingertips to help you prepare financially for what could be the most rewarding part of your life. This tool is your retirement plan. Many retirement programs offer investment options to choose from, and contributions can come from your employer, you or both to provide the accumulation you need to save for the future. Three retirement savers Debra Due Diligence, 35, hasn't started contributing to her pension plan, opting instead to save $25,000 in an IRA plan, and that may help offset possible foregone earnings. She'll have to put more than 12.1 percent away in order to enjoy 80 percent* of her $35,000 income at retirement. Deb will put her money into a moderately aggressive portfolio with 20 percent in fixed income and 80 percent in equity. Pete Procrastinator has waited even longer. At age 48, he's earning $50,000 per year as an editor for a small publishing company. But he has only saved $5,000 in an IRA. Pete would have to save more than 30 percent of his before-tax income in order to retire with just 80 percent* of his current income. That's more than the law allows, so Pete would have to use another savings vehicle, as well. Pete's not too worried, though. He plans to continue working part time after age 65, and will invest 12 percent into a moderate portfolio, with 40 percent of funds going to a fixed income group and 60 percent going to an equity group. No matter where you are in your career, a retirement program offers a wide range of investment options. The most important thing you need to do is use it. Here's a review of the three hypothetical retirement examples:
*Assumes a 3.5 percent inflation rate, investment growth of eight percent before and six percent after retirement, no employer-contribution pension plan and standard calculated Social Security income. These are hypothetical examples for illustrative purposes only and are not indicative of any particular investment. Developing a strategy for a financially secure retirement is no simple task. That's why an experienced professional's knowledge and objectivity can make this important challenge more manageable. Estate Planning Helping you protect your legacy While reducing taxes can be an important goal, it’s not the only reason to develop an estate plan. Regardless of what happens with tax legislation, an estate plan can be an essential financial planning tool. As you put together your own estate plan, consider these elements:
What if I don't have a will?
Business Solutions
Business Continuation
Benefits for key executives
Planning for changes in ownership Business Planning Effective business continuation is both an "art" and a science. First and foremost, it is an art. Because the best business plan always considers your unique financial goals and objectives, creativity and customization is required to select and tailor those strategies best suited to meet your specific business continuation and benefit needs. However, business continuation and benefit planning is also a science. The best business plan should take into account the tax and legal ramifications of the various financial strategies adopted. A Financial Advisor or Registered Representative will incorporate both the art and science of business planning in a program recommended to you. Using business dollars for personal expenses Split-dollar life insurance Disability insurance Section 303 stock redemption How to use employee benefits to increase income and improve retention of key employees Disability salary continuation planning Qualified pension and profit-sharing plans Life Rewards Split-Dollar insurance Golden Executive Bonus Arrangement(GEBA) Personal financial analysis Group insurance The Art and Science of Business Planning can help ensure the ongoing success of your business. Key Person Insurance: Key people are vital to the success of your business. A Key Person Life Insurance Plan can provide the funds you need to keep your business running smoothly after you've lost a key employee through death or employee turnover. How Key Person Life Insurance works: The employer can arrange an Exchange of Insurance Agreement to reduce losses if a key employee leaves prior to retirement. This allows the employer to transfer coverage to a successor. If a key employee dies, the employer receives the policy's income tax-free death benefit* and can apply it towards business expenses or losses caused by the employee's death. 
If you employ anyone whose sudden, unexpected absence would significantly impact your business, consult with your life insurance agent and financial professionals about Key Person Life Insurance. * Subject to the corporate alternative minimum tax for C corporations. Business estate planning: You've spent a lifetime building your business. Take a moment to make sure that your hard work will survive the death of you or one of your partners. As the owner of a closely-held business, much of your wealth is probably tied up in the business. While returning earned income back into the business helps finance growth, it can cause severe liquidity problems for your estate when you die. After paying probate and estate taxes, your estate and surviving family members also may encounter liabilities that become payable upon your death. They may also face the potential of decreased business earnings, due to your absence. There are ways to overcome these liquidity problems. Business-oriented planning tools can help reduce estate taxes and make the best use of the cash available. The most common business estate-planning tools are buy-sell agreements, Section 303 stock redemptions, Section 6166 estate tax deferrals and the qualified family-owned business exclusion. Business-owned life insurance can be used to fund each of these planning methods. Buy-Sell Agreements There are two main forms of buy-sell agreements: cross-purchase and stock redemption. In an insurance-funded cross-purchase arrangement, each business owner buys an insurance policy on the other, naming themselves as beneficiary. At the death of one of the owners, the surviving owner receives tax-free insurance proceeds to use in purchasing the deceased owner's stock from his or her estate. In an insurance-funded stock-redemption arrangement, the corporation purchases the stock of a deceased shareholder. Here the business is the owner and beneficiary of life insurance policies on each shareholder. A partnership looking for a business continuation plan may use a similar arrangement called an entity purchase. A buy-sell agreement that is funded with life insurance will benefit: Your Family:
Your Business:
Section 303 Redemptions To be eligible for a Section 303 redemption, the stock value must exceed 35 percent of your estate. The maximum amount that can be paid under such a plan equals the total amount of the federal estate tax, state death taxes, funeral and administrative expenses. Corporate-owned life insurance can be used to fund the redemption. Under this arrangement, your business purchases an insurance policy on your life and at your death uses the tax-free proceeds to buy enough stock from your estate to cover death expenses and taxes. Section 6166 There are a number of requirements you'd have to meet to be eligible for the Section 6166 extension. If your estate qualifies, life insurance offers an economical way to pay these installments. Qualified Family-Owned Business Exclusion Business Valuation for Estate Planning Business continuation planning: Business continuation planning tools can help you avoid the problems that can occur when a business owner dies. A life insurance funded business continuation plan provides a wide variety of benefits for your family and the business. For your family:
For the business:
Several business continuation plans are available: Cross Purchase Plan Stock Redemption/Entity Purchase Plan LifeCycle Buy-Sell Section 303 Stock Redemption Plan Golden Executive Bonus Arrangement (GEBA): Attracting, motivating and retaining key executives takes a competitive compensation package that includes more than a salary and a bonus. Until recently, government regulations made it almost impossible to single out and reward those employees you value most. The Golden Executive Bonus Arrangement (GEBA) can be a solution for rewarding and retaining your most valued executives. This tool gives your company a current income tax deduction through the purchase of cash value life insurance, while maintaining control to encourage an executive to stay with your company. Other advantages of life insurance funded GEBA include:
If you're looking for an executive compensation tool that helps you retain one or more key executives, consider using life insurance in a GEBA. Planning for changes in ownership Buy-Sell agreements Key Employee Life Insurance Personal estate planning |
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400 Interpace Parkway
Morris Corporate Center #3
Building C, First Floor
Parsippany, NJ 07054
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Phone: (973) 299-9222
Fax: (973) 299-9227
