Business Wealth Preservation

Customarily, retirement plans provide income tax benefits to business & farm owners. As an added benefit, they may be a key to attracting and retaining employees. Types of retirement plans include:

• Traditional 401(k) — medium to large size companies with over 100 employees
• Solo 401(k) — companies with only an owner and spouse as employees
• SIMPLE IRA — companies with less than 100 employees
• SEP IRA — companies with one to several employees
• 403(b) plans — non-profit organizations
• Defined Benefit Plans — traditional pension plans

As an investment strategy, mutual funds may provide a way to help your business or operation weather low business sales, crop and livestock price fluctuations, regulatory changes, and equipment issues. Mutual funds may also provide an important component in the transition plan of the business or farm to the next generation. Mutual fund investing involves risk, including possible loss of principal.

Annuities are long-term investment vehicles designed for retirement purposes. Many business and farm owners find that annuities provide an income during transition years, allowing more of the operational income to be passed on to the next generation.

The next generation may include family members who may or may not want to be involved in the business or farming operation. A life insurance policy may help ensure the transition of the farm or business is completed according to your wishes.

You may be able to avoid liquidation of assets to pay for the increasing costs of long-term care.