Corporate Communications — Short Takes
Sometimes the shortest message is the best way to raise a client's awareness or initiate their call to action. That's the premise behind our Short Takes. We designed these topical shorts to provide the fast financial news that your clients can read quickly, peruse, or glance at and come away with valuable information. Short Takes are a popular feature on many corporate intranets and internet sites and are equally as powerful in their printed form. For more information on how Short Takes can add impact to your organization call (800) 722-7270 x122 for more information.
Disability Protection for Business Owners
Most business owners would not think twice about carrying life insurance. Yet, many often fail to insure themselves against disability. If you were to become disabled, would you be able to generate sufficient income to maintain your family's standard of living? Would your company have the financial resources to continue its business operations? When planning for disability income protection, business owners should consider not only personal disability income insurance, but also business overhead insurance .A personal disability income policy replaces a portion of the income you lose due to disability. Business overhead insurance helps cover your company's fixed costs, such as salaries, lease or mortgage payments, utility bills, and insurance premiums. You hope you will never become disabled. But, if you do, having the proper insurance coverage can give you the peace of mind of a secure source of income. It can also help keep your business, which you worked so hard to build, up and running. Give us a call at your convenience. We would be happy to review your needs and fill you in on the ways disability income insurance can benefit you.
Borrowing from Your 401(k) Plan
A majority of companies that offer 401(k) plans allow their employees to take loans from a portion of their balance under certain conditions. The upside to such a loan is that when repaying it, the employee is actually paying himself or herself the interest. But, if you're considering such a loan, beware. Indiscreetly accessing your fund could void its tax-deferred status and bring penalties. If the loan isn't repaid within a certain period (usually five years), and in accordance with certain rules, the IRS views the outstanding balance as a withdrawal, and may assess both taxes and a penalty. If the employee quits, the company may demand full repayment of the loan. In that case, the 401(k) plan would be rolled over or broken up, and the borrower may owe taxes on the loan balance, and possibly a penalty. In both cases, penalties will be avoided if the employee is age 59½ or older and can withdraw from the fund. In the case where an employee quits, penalties may be avoided if the balance is paid back into the fund within 60 days. If you're considering borrowing from your 401(k), it's a good idea to check all the rules and all your options before moving ahead.