Insurance & Risk Management
Corporate Funding Solutions
Companies often use tax-advantaged Corporate Owned Life Insurance (COLI) policies as financing vehicles to set aside assets for future benefit obligations (e.g., deferred compensation plan and asset management strategies). COLI products are popular because of the tax advantages they provide to the corporation.
In addition to traditional registered and off the shelf COLI products, Stratos Wealth Partners offers customized products to qualified purchasers. These customized products can offer greater flexibility in investment managers and investment styles, low, explicit, and amortized expense charges, contractual guarantees, and more efficient liquidity strategies.
By emphasizing lower expenses and cash accumulation instead of death benefits, these customized products can be tailored to match a company’s cash flow needs. Many U.S. corporations currently use this type of funding vehicle.
Our experience provides our clients with unique access to pricing and product enhancements. The result is a more efficient insurance asset with a better return on capital.
Stratos Wealth Partners believes that the successful implementation and administration of a client’s nonqualified plan is driven by an effective plan design which:
- Satisfies corporate objectives
- Attracts and retains top-level talent
- Facilitates the communication of plan specifics
- Provides a valuable executive benefit
- Motivates executives to accomplish goals and achieve success for the organization
- Maximizes tax-deferred savings opportunities
To deliver on the promise of meeting each client’s unique requirements, Stratos Wealth Partners begins every relationship by listening to their goals and learning about their organization. We analyze corporate philosophy, company culture, financial issues, demographics and existing benefit arrangements to help craft individualized, clearly defined and achievable objectives that serve as the foundation for a successful plan design. Over the course of the client relationship, we regularly evaluate the plan’s effectiveness, and adapt the design to reflect evolving client needs.
Executive Funding Solutions
To attract, retain and reward highly valued employees, companies sponsor nonqualified benefit arrangements such as deferred compensation plans, supplemental executive retirement plans (SERPs), benefit restoration plans, and 401(k) excess plans, among others. While “qualified” plans, such as 401(k) plans, must follow rigid IRS and ERISA guidelines, nonqualified plans provide the sponsoring company the ability to design the plan based on its own goals and objectives. Companies can select participant eligibility, determine compensation sources and impose vesting schedules. For key executives, the tax-deferred savings and earnings opportunities these plans offer make them one of the most effective ways to accumulate wealth.
There are many different types of nonqualified plans, an endless number of plan design variations, and numerous informal funding strategies to hedge and offset the liabilities these plans can create.
Stratos Wealth Partners specializes in providing strategies and services related exclusively to executive benefit plans, using a systematic approach that reduces our clients’ internal staffing needs and conserves their valuable resources. Today, we develop solutions to deliver more value to our clients and their key executives.