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First Choice Insurance and Financial Services in Augusta Ga

3108 Peach Orchard Road

Suite 3

Augusta, Ga. 30906

Office: 706-798-8860

Fax: 706-798-8849


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Nonqualified Deferred Compensation

The Problem — Attracting and Retaining Key Employees

An Ideal Solution — an Insured Nonqualified Deferred Compensation Plan

The Advantages of an Insured Nonqualified Deferred Compensation Plan

a nonqualified deferred compensation plan may even make money for your business.

In addition, this plan benefits your business in that it:

  • May be provided on a selective basis.
  • May be tied to company goals; the benefit "formula" may be variable.
  • Protects your business investment in the executive. Turnover is costly; replacement is time consuming; interruptions in the continuity of management are detrimental to profits.
  • Ensures adequate funds to protect your obligation to the executive's family in the event of premature death or disability.
  • Steadily builds up cash values. These cash values are an asset of the business and available for loans or as collateral.
  • May provide full or partial corporate cost recovery. The cumulative cost of the plan may be less than the cumulative cost of the current cash compensation.
  • Provides all or part of the money necessary to pay retirement benefits under the terms of the agreement. Your company has two choices:
    • Use policy cash to fund the executive's retirement benefits, or
    • Hold the policy intact until the executive's death and pay retirement benefits out of working capital.

To the Executive and Family, this plan:

  • Bridges the gap that exists between the tremendous fringe benefits of big industry and the pleasant independence that results from working for a closely held corporation.
  • Takes a percentage of the dollars that the executive could demand today and put them aside for future delivery when his or her personal tax rate may be lower and guaranteed income becomes more important.
First Choice Insurance & Financial Services of Augusta Succession Planning for Partnerships Chart