Sapers & Wallack
Case Studies
Corporate Financial Planning
Client:
A company with 1,000 employees.
Issues:
Sapers & Wallack handled group benefits for a company with 1,000 employees and was asked to help solve a problem that was evidencing itself among their 12 officers, 24 senior executives and the 10 outside board members. It seemed that this group did not fully understand nor appreciate the supplemental benefits (deferred compensation, 401(k) restoration) they were eligible for, or how to best incorporate decisions on these programs into their personal planning. Human resources had been fielding many questions from executives about best practices to utilize the plans. However, HR did not think they were qualified nor in any fiduciary position to strategically advise on these types of personal decisions. The company sponsored two deferred compensation plans along with a 401(k) plan, and the frustration level from the executives in terms of their understanding on the interrelationship of the different plans and strategy to maximize benefits from all plans was apparent to HR.
The solution:
Sapers & Wallack was hired on a fee basis to provide comprehensive financial planning services to the select group of executives and board members. We initially conducted a general session to introduce the financial planning process for all executives, which was followed up with individual one on one sessions with our financial planning team and the executive and his / her spouse. In most cases, the personal financial planning encompassed three meetings. Since Sapers & Wallack is a fully integrated benefits firm with subject matter experts in group insurance, executive benefits, retirement planning, investment management and financial planning, we were able to easily explain and facilitate the integration of all programs into each executive’s personal situation and make suggestions on maximization of benefits.
Highlights of the solution included:
- Much better executive and board appreciation of benefits
- Decisions knowingly made in order to maximize benefits of all programs
- Comprehensive planning and coordination or company available / provided benefits with individual and spouse outside programs.
- The financial planning process, provided comprehensive education and planning around existing benefits, incorporated estate and wealth transfer planning, total asset allocation, college funding, retirement planning, insurance analysis and financial modeling. This coordinated and comprehensive analysis uncovered many issues that executives were otherwise unaware of and enabled them to make educated decisions.
Outcome:
Our client was able to improve the relations between the company and its key executives by expanding the benefits program to add valuable options. The financial planning process that the company adopted for its executives was a real value add and made the executives feel appreciated and important.
Case Study for illustrative purposes only. Individual results may vary.