Security Mutual Life, through its subsidiary, Security Administrators, Inc., announces a new retirement plan guide devoted to fully insured plans and cash balance plans.
Fully insured plans or cash balance plans, when used in combination with 401(k) plans, can provide many business owners and self-employed professionals with much greater retirement accumulations than can stand-alone 401(k) plans. A properly designed fully insured or cash balance plan may also permit the advantage of tax-free survivor benefits to the participants’ surviving spouse or other heirs.
Security Mutual’s new retirement plan guide is designed to help financial advisors better understand these sophisticated plan designs. The guide, available for download at www.smlplans.com or http://www.saiplans.com, provides a road map for insurance advisors who are interested in presenting combination designs to their business owner clients. Security Mutual and Security Administrators, Inc., also offer plan design services for life insurance advisors and other qualified plan advisors.According to Security Mutual’s chief marketing office, George Kozol, J.D., LL.M., CLU:
“. . . tax relief of a type achievable with fully insured and cash balance plans is hard to come by for most successful business owners and professionals.” According to Kozol, plan design activity at Security Mutual is up, despite the slow economy. He notes that successful business owners and professionals are using the fully insured and cash balance plans to indirectly make up for the losses that they experienced in their 401(k) plans.
He went on to observe that ” . . . at a time when the Federal government is providing stimulus relief packages to large publicly-held companies, small business owners and professionals have to fend for themselves. Fully insured and cash balance plans might be viewed as self-help stimulus plans for small business owners and independent professionals.”
L.D.