1. Presented by Freedom Broker Services, LLC Executive Benefits: Recognizing Opportunities

2. Knowing My Client  Entrepreneur  Small Business Owner  CEO/Corporate Executive  Attorney, CPA, Engineer  Doctor or Medical Specialist  Real Estate or Mortgage Banker

3. Ask Your Client  “What is important to you about your money?”  “ Who is important to you?” “Who really matters?”

4. What is the make-up of your client’s wealth/assets? 25% Know My Client

5. CEO’s Planning Opportunities & Vulnerabilities Executives Employment Agreement Review and analysis  Is there a deferred compensation agreement or profit sharing component or ESOP?  Is the plan funded?  Is there a Survivor Benefit?  What about company solvency?

6. Employee Benefits Booklet  Is Life Insurance offered and what is the multiplier?  Are they aware they report Table I cost on their W-2, for every premium dollar paid over the Section 79 rules or $50,000 of group term life?  Is Long Term Disability addressed? What is the formula (60% to $10,000 cap) is a Disability Income Restoration Plan offered?  Is a 401k offered and what is the employer match (percentage?) Is it self-completing in the event of disability? CEO’s Planning Opportunities & Vulnerabilities

7. Employee Benefits Booklet  Life Insurance can provide a safety net for the survivors of underperforming investments and sudden death in a down market.  Life Insurance provides a stable retirement, college funding and debt relief. CEO’s Planning Opportunities & Vulnerabilities

8.  What is the buy-out at retirement?  Many law firms offer Capital Accounts to buy out retiring attorneys. This amount can be a big number after years of legal fees and an established client book but is it funded? Golden handcuffs or Golden Parachute? CEO’s Planning Opportunities & Vulnerabilities

9. Succession Planning:  Do they have a Buy-Sell Agreement?  When was the last time it was updated?  Is it funded (Life, DI)? Business Owner, Planning Opportunities & Pitfalls … A Moving Target

10.  What is the value of the business… when was the last time they had a formal “Business Valuation” completed?  Do they understand the benefits and tax advantages of a Cross-Purchase Agreement vs. other methods? Step-up in basis?  How much would the business be worth to a competitor? Business Valuation Business Owner, Planning Opportunities & Pitfalls

11.  Keyperson- Is there a potential buyer internally or someone that the business can’t live without?  Has the firm indemnified itself to protect against their sudden death or disability. The value of the firm can plummet within months.  Business Continuity- Does a son or daughter want to come into the business and continue the legacy? Business Owner, Planning Opportunities & Pitfalls

12. Business Valuation Methods  Who is important to your client?  What assets do they want to preserve for the next generation?  What is their liquidity quotient?  How are they going to pay for Long Term Care and Catastrophic Medical Treatment that can devastate their legacy? Trans-Generational Planning & Legacy Opportunities

13. What about State Estate Taxes and Inheritance Taxes?  The liquidity of heirs becomes crucial  Farms and closely-held businesses are not highly liquid  The State of Maryland has a 10% State Inheritance Tax  You may reach the $10,600,000 Federal Joint Exemption but still owe $1,600,000 in Maryland Inheritance Taxes Where will the money come from? Trans-Generational Planning & Legacy Opportunities

14.  One daughter is a partner in the business and the three sons are an attorney, a doctor and a teacher who are not actively involved in the business 80% of the family wealth is in the business  80% business value  10% personal assets  10% cash  Life Insurance can balance the scales and no one becomes disenfranchised Estate Equalization Trans-Generational Planning & Legacy Opportunities

15.  Who do they have a passion for helping? Charitable Giving Options: College Alumni Association Disabled Veterans Groups Children’s Hospital  How important is a family legacy? Know your client Trans-Generational Planning & Legacy Opportunities

16. Why Affluent Investors Need Long Term Care Too  Estate planning benefits, i.e. the ability to transfer funds out of estate instead of needing to use funds for care costs?  Self-funding: A strategy that is doomed for failure  “Rainy Day Fund”  Transfer the risk to the insurance company- what are the benefits?

17. Why Affluent Investors Need Long Term Care Too Long Term Care Insurance Matrix Purchasing Insurance vs. Alternative Investment The blue cells indicate a field where YOU input the data The white cells indicate a field that is calculated for you The red cells are the output fields Age55 Long Term Care Insurance Details Daily benefit amount$270 Benefit Period (years)3 Pool of benefits$295,650 Inflation protection option5% Simple Number of years policy in force before claim20 Future annual pool of benefits$192,172.50 Claim time (years)3 Future value of insurance claim$576,517.50 Alternative Investment Future value$576,517.50 Tax bracket20% Tax Equivalent future value$691,821.00 Investment rate of return5% Number of years to invest20 How much would I have to invest each year to attain my Tax Equivalent future value? $20,922.46

18.  770 Accounts- what are they and how are they used?  BOLI and COLI- effective benefit tools for banks and corporations  SERPs, Split Dollar, Section 79 Plans, Executive Bonus, Non-qualified Deferred Compensation Plans- who wins, the executive or the corp?  DI Restoration, Pension Completion, Corporate Paid LTC, Restricted Bonus Section 162 Plans Executive Benefits: What’s Hot and What’s Not

19. Thank you! Contact our Team: Kevin Conley, CLU, CASL, LUTCF 240.477.1137 kconley@freedombrokerservices.com Ryan Buck, CLTC 240.477.1136 rbuck@freedombrokerservices.com www.freedombrokerservices.com