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What is Executive Financial Planning?

Who Benefits and Why Your Executives Need It

by James R. Westermeyer
Partner

In post Sarbanes-Oxley environment Executive perks have come under the scrutiny of the public eye causing more companies to look toward offering alternative solutions. While theater tickets and executive dining rooms are becoming less common, financial counseling is among the benefits on the rise in popularity. Given the demographics of those individuals most likely to be in Senior Management level positions, (i.e. baby boomers), this trend will likely continue. To this end, creating an Executive Financial Planning solution will allow you to recruit and retain top talent often hinging on competitive and attractive Executive benefits. Creating a benefit package that is practical and attractive will be particularly important since competition for talent will increase as baby boomers exit the workforce. 84% percent of companies offer financial counseling, making it the most popular corporate perk offered to Executives.

Executives that go through the Executive Financial Planning process will…

  1. Have an organized and comprehensive integrated Financial Condition Model for planning purposes. They’ll be able to make informed decisions regarding their financial situation and how to best optimize their benefits offered through your company as well as outside of your company.
  2. Be able to build a comprehensive financial strategy that truly reflects and embodies their personal goals, values, and life objectives, and develop a process to manage their strategy.
  3. Be able to integrate the knowledge learned into their personal investment decisions.
  4. Be able to evaluate specific investment objectives in light of their own asset allocation.
  5. Obtain strategies for reducing and eliminating capital gains tax for highly appreciated assets.
  6. Make more informed decisions on retirement planning options and on their age for retirement.
  7. Be able to determine how much insurance they really need and how it will change over time.
  8. Look at leveraging gifts specifically of company stock or using generation skipping tools to move that stock to the next generation.

By offering Executive Financial Planning within your company your executives will have a clearer picture of their future. They’ll be able to focus more on productivity and growth of your company and focus less on growing their own personal assets. By not unnecessarily meeting with multiple advisors to get the advice that one advisor can provide to them, your Executives will be saving time. Your Executives will feel a relationship of respect from your company because they were offered this unbelievable service of Executive Financial Planning. These benefits, although taxable, are treated as an income element and can be ran through the corporate structure as an executive bonus.

Time has become a valuable asset to the modern day Executive. Their career path and growth within the company will become a greater focal point. By having one comprehensive Executive Financial Planner you can consolidate and identify opportunities and gaps in your planning while still adding substantial amounts of value, versus having five advisors doing different things at different times. By having an Executive Planning Team your Executives will feel confident that there is someone quarterbacking their wealth versus having five linemen running around with their heads cut off like chickens. This extra time will provide for more quality time at both work and with family.

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