WEBINAR: Retirement Planning for Business Owners

October 12, 2022

How do business owners plan for retirement? What is the best way to save for retirement when self-employed? As a sole proprietor, with employees, how do you develop an exit strategy or succession plan for your business? Mike Rogers, President of 360 Financial, will guide you through essential steps you should take as an entrepreneur to plan for retirement, save when self-employed, and develop an exit strategy for your business.


As you watch, if you have any specific questions or concerns, please don’t hesitate to reach out to our team!

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    As a business owner, you know the importance of planning for your company’s future. To this end, you may have taken steps to learn about buy–sell agreements and the role that life insurance and disability income insurance can play in planning a business buyout. If so, you may be one step ahead of the game. But, have you thought about long-term care buyout planning?

    A Buy–Sell Refresher

    Let’s review an important tool for planning the future of your business. A buy–sell agreement is a legal contract that prearranges a buyer for your share of the business when a triggering event occurs, and it also stipulates the price that the buyer will pay. You may negotiate a buy–sell agreement with your partners, shareholders, members of your management team, or key employees who may have an interest in the company’s future ownership.

    Buy–sell agreements are generally structured in one of two ways: as a cross-purchase agreement or an entity-purchase agreement. A cross-purchase agreement is negotiated between you and each partner or shareholder. If you die or become incapacitated, the parties to the agreement purchase your shares at a previously agreed on price. A cross-purchase agreement generally works best in companies with only two or three owners. As the number of owners increases, it can become expensive and administratively cumbersome for each owner to maintain an agreement with every other owner.

    For a company with a larger number of owners, an entity-purchase agreement may be more practical. With this kind of agreement, the company takes out a life insurance policy for each owner. At a triggering event, the insurance money collected by the company is used to pay the estate of the deceased owner for that person’s share of the business. And the remaining owners avoid any out-of-pocket expenses. When the company buys back a departing owner’s shares, the value of the remaining shares increase accordingly.

    Simply having an agreement in place does not ensure that funds will be available to buy your shares when the agreement goes into effect. Therefore, these agreements are often funded through life insurance (as is the entity-purchase agreement) and/or disability income insurance. In these cases, the triggering event would be death or disability. But what about the possibility of a long-term care event?

    Preparing for Long-Term Care

    To create a more comprehensive buy–sell agreement, you may want to consider planning for an accident or illness that requires long-term care. “Long-term care” refers to a variety of medical and nonmedical services provided to individuals with a chronic illness or disability.

    Most long-term care involves assistance with activities of daily living (ADLs), including, but not limited to, dressing, personal care, meal preparation, and housekeeping. An individual is generally considered to be in need of long-term care if he or she has difficulty performing two or more ADLs due to physical limitations, cognitive impairment, or both. Services are typically provided in a nursing home, in an assisted living facility, or at home.

    A long-term care event can come about suddenly, as a result of an accident or illness, or gradually, as part of the aging process. When an owner or partner requires long-term care, the company may find it difficult to continue to pay that owner’s salary, and other owners may not have the funds to buy the departing owner’s shares.

    Preparing for long-term care when drafting a buy-sell agreement may be important to the future of your company. A buy–sell agreement could trigger the sale of a departing owner’s shares, and the agreement could be funded by long-term care insurance.

    Long-term care buyout planning may help preserve the value of the business and ensure continuity. Be sure to consult a long-term care insurance professional for more information.



    Important Disclosures


    The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

    This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.

    This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

    This article was prepared by Liberty Publishing, Inc.


    LPL Tracking #1-05185631


    Risk management is a key component in any successful business plan. In today’s world — where data breaches are common occurrences — it’s especially important for business owners to understand the digital risks they face. Are you doing all you can to mitigate the risk of a cyberattack?

    The importance of cybersecurity

    Many small-business owners may think their organizations hold little appeal to hackers due to their small size and limited scope. However, according to the Small Business Administration (SBA), this naiveté may actually make them ideal targets. Small businesses are keepers of employee and customer data, financial account information, and intellectual property. Their systems, if not adequately protected, may also inadvertently provide access to larger supplier networks. “Given their role in the nation’s supply chain and economy, combined with fewer resources than their larger counterparts to secure their information, systems, and networks, small employers are an attractive target for cybercriminals,” reports the SBA on its cybersecurity website.

    Consider the following tips compiled from information supplied by the SBA, the Federal Trade Commission (FTC), and the Federal Communications Commission (FCC).

    What are your vulnerabilities?

    To protect your organization, you must first understand your vulnerabilities. How are your systems protected? Do you collect and store personal information of customers and employees, such as credit-card information, Social Security numbers, and birth dates? If so, how is this information stored and who may access it? Do you store it in multiple locations and formats? Are these files password protected and, if so, are you using multiple complex passwords? Do you have a Wi-Fi accessible to employees and customers? How do your vendors and other third-party service providers protect their information? You may want to engage a professional to help identify your risks.

    Tips for security

    When monitoring your security, ensure you have firewall and encryption technology that protects your Internet connections and Wi-Fi networks. Make sure your business’s computers have antivirus and

    anti-spyware software installed and updated automatically. Require employees and others who access your systems to use complex passwords that are changed regularly. Keep only personal data that you actually need and dispose of it securely as soon as it no longer serves a business purpose. Back up critical information and data on a regular basis, and store the backups securely offsite. Assign individual user accounts to employees and permit access to software and systems only as needed. Be especially cautious with laptops and company-assigned smartphones. Question third-party vendors to ensure that their security practices comply with your standards.

    Redundancy is key

    In writing or speaking, redundancy is typically not recommended unless you’re really trying to drive a point home. When it comes to your digital life, however, redundancy is not only recommended, it’s critical. That’s because redundancy means having multiple data backups stored in different locations. Here are some ideas for redundancy when backing up your data:

    • If you have digital assets that you don’t want to risk losing forever — including photos, videos, original recordings, financial documents, and other materials — you’ll want to back them up regularly. And it’s not just materials on your personal computer, but your mobile devices as well. Depending on how much you use your devices, you may want to back them up as frequently as every few days.
    • A good rule to follow is the 3-2-1 rule. This rule helps reduce the risk that any one event — such as a fire, theft, or hack — will destroy or compromise both your primary data and all your backups.
    • Have at least three copies of your data. This means a minimum of the original plus two backups. In the world of computer redundancy, more is definitely better.
    • Use at least two different formats. For example, you might have one copy on an external hard drive and another on a flash drive, or one copy on a flash drive and another using a cloud-based
    • Ensure that at least one backup copy is stored offsite. You could store your external hard drive in a safe-deposit box or at a trusted friend or family member’s Cloud storage is also considered offsite.

    More about cloud storage

    Cloud storage — using Internet-based service providers to store digital assets such as books, music, videos, photos, and even important documents including financial statements and contracts — has become increasingly popular in recent years. But is it right for you? If a cloud service is one of your backup tactics, be sure to review carefully the company’s policies and procedures for security and backup of its servers. Another good idea is to encrypt (that is, convert to code) to protect sensitive documents and your external drives. Other considerations include:

    • Evaluate the provider’s Is the service well known, well tested, and well reviewed by information security specialists?
    • Consider the provider’s own security and redundancy Look for such features as two-factor authentication and complex password requirements. Does it have copies of your data on servers at multiple geographic locations, so that a disaster in one area won’t result in an irretrievable loss of data?
    • Review the provider’s service agreement and terms and conditions. Make sure you understand how your data will be protected and what recourse you have in the event of a breach or loss. Also understand what happens when you delete a file — will it be completely removed from all servers? In the event a government subpoena is issued, must the service provider hand over the data?
    • Consider encryption processes, which prevent access to your data without your personal password (including access by people who work for the service provider). Will you be using a browser or app that provides for data encryption during transfer? And once your data is stored on the cloud servers, will it continue to be encrypted?
    • Make sure you have a complex system for creating passwords and never share your passwords with

    Educate your employees

    To help ensure that your employees are also maintaining sound cybersecurity practices, establish clear security policies and procedures and put them in writing. Cover such topics as handling sensitive or personal information, appropriate use of Internet and social media, and reporting vulnerabilities. Clearly spell out consequences for failing to follow the policies. Develop a mandatory employee training program on the importance of cybersecurity. Explain the basics of personal information, as well as what is and isn’t acceptable to post on social media.

    Employees could unknowingly release information that could be used by competitors or, worse, by criminals. Ensure that employees understand the risks associated with phishing emails, as well as “social engineering” — manipulative tactics criminals use to trick employees into divulging confidential information.

    For more information, visit the SBA cybersecurity website.




    Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

    The information provided is not intended to be a substitute for specific individualized tax planning or legal advice. We suggest that you consult with a qualified tax or legal professional.

    LPL Financial Representatives offer access to Trust Services through The Private Trust Company N.A., an affiliate of LPL Financial.

    This article was prepared by Broadridge.

    LPL Tracking #1-546955


    Your retirement is the reward after years of hard work and saving. You might dream of traveling, want to invest in a vacation home, or want to take up a new hobby. For an enjoyable retirement, saving is critical. Take charge of your retirement and work toward your goals with the help of these few tips and tricks.

    1. Take Advantage of a Company 401(k) Match

    When a company provides a matching contribution for your retirement savings, it is like getting free money to invest. This strategy may help your portfolio grow larger. Find out the amount of your 401(k) contribution that your company matches, and make sure you contribute that much to your 410(k). This strategy is like getting an extra company bonus each year.1

    2. Start Early

    No matter your age, you may save for retirement. The longer your money is invested, the greater chance you may have that your savings grows. Make your savings allocations a part of your monthly budget, like any other bill. Take advantage of payroll contributions if you have a company 401(k). If you set up an automatic savings process, you put money away with each paycheck without thinking about it.2

    3. Fully Fund a Health Savings Account

    Healthcare costs continue to rise yearly, and you may face significant health expenses as you age. Consider contributing money to a health savings account to prepare for these costs. When you contribute to a health savings account, it is tax deductible. You may withdraw the money tax-free as needed to pay for qualified medical expenses. In 2022, you may contribute up to $7,300 annually for a family and $3,650 for an individual. While a health savings account is a way to prepare for medical costs, it is also a way to help save for retirement. Once you hit 65, you may use the funds in the account to pay for anything, not just healthcare expenses.1

    4. Find the Perfect Place to Retire

    When saving for retirement, it is essential to know your goals for retirement and where you plan to retire. If you are considering moving for retirement, you might find a state that may help your money go further. Many states are good for retirees. Some have great weather, some top-notch health care services, and others do not impose a state tax. Not paying state tax on your retirement funds may make retirement easier.1

    5. Look for Tax Advantages at 50

    Taxes may get a little easier for you once you are at the age of 50. As you get nearer to retirement, you may take advantage of the increased limits for retirement contributions. This additional amount may help boost your retirement savings while taking advantage of the tax breaks that retirement plans offer. After age 50, contributions to a traditional individual retirement account (IRA) or a Roth IRA may increase from $6,000 to $7,0003, and you may contribute an additional $6,500 to your employer-sponsored plan.1

    Get your retirement savings on track by utilizing these tips.


    Important Disclosures

    The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

    Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

    This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

    Contributions to a traditional IRA may be tax deductible in the contribution year, with current income tax due at withdrawal. Withdrawals prior to age 59 ½ may result in a 10% IRS penalty tax in addition to current income tax.

    The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.

    All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.

    This article was prepared by WriterAccess.

    LPL Tracking #1-05313109.



    1 8 Essential Tips for Retirement Saving, Investopedia, https://www.investopedia.com/articles/investing/111714/8-essential-tips-retirement-saving.asp

    2 How to Win at Retirement Savings, The New York Times, https://www.nytimes.com/guides/business/saving-money-for-retirement

    3 Retirement Plans FAQs Regarding IRAs, Internal Revenue Service, https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras


    No matter where you are in life, you may have at least a few financial goals. Perhaps you want to buy a house, save for your child’s college education, or retire early. Regardless of what your goals are, financial planning can help you work towards them. Let’s dive deeper into what financial planning is and how it may benefit you.

    What is Financial Planning?

    Financial planning is examining your financial situation and designing a specific plan to help you pursue your goals. Financial planning involves multiple areas of finance, such as budgeting, debt management, savings, retirement planning, insurance, and estate planning. In addition, financial planning may include holistic planning, which focuses on addressing your life goals by properly managing your financial resources, health, and other aspects of life.

    Why work with a financial professional?

    An experienced financial professional can help guide you through the financial planning process by providing advice in several areas of your financial life. They’ll examine your current income, savings, and investments, then make recommendations on improving your financial situation to manage your goals. While every financial professional has their distinct strengths and specialties, most can advise you on the following:

    • How you can get out of debt.
    • What you can do differently to save money.
    • How much to keep in your emergency fund.
    • The types of retirement accounts that meet your situation.
    • How much money you need to save to meet your retirement goals.
    • Whether you should refinance your existing mortgage or work to pay it off early.
    • If you have the appropriate type of insurance for your situation.
    • How to improve your tax situation.
    • How to adequately save for your child’s education.

    Reasons to work with a financial professional

    While you can pursue financial planning independently, you can benefit by working with a financial professional.

    • Determine if you’re on track with your goals: A financial professional can analyze your current financial situation and make recommendations on what is going well and what you can improve.
    • Get a Second Opinion: Even if you feel confident in your financial skills, a financial professional can give you a second opinion. They may fast-track your strategies and make suggestions to help you work towards your goals more efficiently.
    • Manage Roadblocks: If you lose your job, go through a divorce, or experience other life events that impact your finances, a financial professional can help you navigate the situation to make choices that position you for a successful financial future.

    Consult Your Financial Professional

    Together with your financial professional, review your situation to determine the ideal life plan for you. Contact us today to get started.


    Important Disclosures:

    The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. This material is for general information only and is not intended to provide specific advice or recommendations for any individual.

    LPL Tracking # 1-05193191