Problem:

An executive of a local, high-tech company had accrued several years of outstanding profit making performance for his company. However, he and the senior shareholders of the firm were concerned with the firm's ability to retain this executive for the next ten years and provide a quality supplemental "retirement" parachute for him.

Solution:

After discussing all aspects of the situation with the client and their lead tax counsel, AFIS Benefits recommended a program that would satisfy the needs of both parties. For the executive, the program addressed the need for a retirement benefit that, with CPI indexing, would equal 100% of his salary at the time of retirement. For the firm, the program addressed the need for a long-term retention program with the executive for a minimum term of 10 years. Immediate taxation issues were eliminated or lessened as a result of the recommendations given by AFIS Benefits.

Success:

Through an extensive knowledge of tax deferred programs AFIS Benefits was able to ask the right questions and apply creative ideas to solve the issue to both parties' mutual satisfaction.

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