“I am concerned about losing this person.  They may either start their own business and compete against me or go to work for my competition.  The talent pool is pretty shallow right now for people with these skills”

 

“Hi Kerry, this is “Liz”.  It has been a couple of years since we first met, but our business is going great and I need to get together with you and talk about one of my key people”.  Liz owns a very successful construction company and her key guy had been with the company for a long time.  We set up a time for me to come to her office and talk about what was on her mind.

 

“Hello Kerry, it’s good to see you again.  I am wanting to do something special for “Tom”.  I don’t know what I would do if he left.  We get along great and he and his family are almost family to us.  Tell me about that idea again that will reward him and hopefully keep him here, even if he gets another offer.”

 

We went over different ideas involving, when the business would to take the tax deduction, if the business wanted to recover the money they had invested or if they just wanted to leave it in the plan for “Tom”.  We took into consideration the business bonding requirements on certain projects, his value to the company as a Key Person, taking care of his family if he died and tax free retirement income for him when he retired and accessible anytime once he was vested.

 

We also took into consideration that “Tom” may want to buy the business when “Liz” decides to sell.  “Tom” may use the plan as a down payment to buy out “Liz” when the time arrives.

 

The plan was implemented and Tom was overjoyed that he was being recognized for who he is and what he does for the company.  He continues to be the same dedicated employee today.  May we help you?

 

There are 2 systems for retaining Key People, one for the informed and one for the uninformed.  May we help you?