Personal Finance 101 – Your Benefits Package At Work: The Extras

One of the most overlooked parts of an overall financial plan is the benefits package you receive from your employer.   Last week I reviewed the area of disability insurance and how to best protect your overall income.    Depending on the size of the company where you are employed, you will find many different types of unique benefits.   Each of these benefits can be easy to gloss over come open enrollment season, but analyzing your overall budget and how these benefits fit in with your plan can be paramount to reaching overall success.  Here are handful extra benefits you may have that should be examined. Legal Plan – A basic legal plan through your employee benefits package can cover many items including legal consultations, wills (including certain types of trusts), living wills, powers of attorneys, deeds, and potentially more based upon the type of overall plan.   If you carefully consider the years you may need these types of legal services, it ...

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Personal Finance 101 – Funding Your Buy-Sell Agreement

Part of any good business plan is an exit strategy if the unexpected happens.  A good Buy-Sell Agreement should anticipate certain unfortunate but foreseeable events, and make sure a fair and reasonable plan is in place. When a triggering event occurs, everyone should be fully comfortable and prepared to move forward with the plan. The most critical detail of the Buy-Sell Agreement to the company’s survival is how to pay the purchase price for a departing owner’s interest.  If the company or other owners do not have adequate assets, cash reserves, or credit available to fund the payment obligations, then they cannot fulfill their side of the agreement.  This isn’t good for anyone – the departing owner (or his estate and family), the company itself, or the remaining owners. Insurance. Since death and disability are two of the most basic triggering events in any Buy-Sell Agreement, life and disability insurance can be the most attractive methods for funding the payment ...

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