• The Top 5 Forces Changing Treasury Cash Management

    Posted by Neil Jesani on April 2014

    Corporate treasury cash management is changing to take a much more strategic role in the business. What was once a straightforward ledgers-and-ink position is becoming more strategic and evolving with the changing nature of business, from multinational expansions to a heavier reliance on cloud computing services. Here are five of the top drivers that will change the role of corporate treasurers.
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  • BOLI Life Insurance: Capitalizing on the Inevitable!

    Posted by Neil Jesani on March 2014

    Bank owned life insurance (BOLI) can be thought of as an investment vehicle that you wouldconsider if you were a bank president, CEO or some other similarly lofty position head. Just like term or whole life insurance policies for the average person interested in securing their future and the futures of their immediate family members, BOLI life insurance is intended to help protect the operational capacity of a bank in case one of its primary executives passes away. Of course, BOLI life insurance need not merely be a hedge against the death of an especially crucial employee; it can also be used to fund an employee’s benefit plan if finances are limited from the usual source for such things.
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  • Defined Benefit vs. Defined Contribution Plans

    Posted by Neil Jesani on February 2014

    Employer pension programs come in different forms but can usually be categorized into defined contribution and defined benefit plans.
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  • 3 Common Types of Executive Deferred Compensation Plans

    Posted by Neil Jesani on January 2014

    One of the most important decisions that any successful business owner should makes is with regards to the types of executive deferred compensation plans he or she will put into place for company employees. In essence, a deferred compensation plan is a financial agreement that is usually established between employers and employees. An employee will agree to allow a portion of their salary withheld, or deferred, until a predetermined future date. These types of plans are an extremely valuable tool for accumulating wealth, planning for retirement, and making arrangements to pass your legacy along to the future generations of your family.
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  • The Ins-and-Outs of Deferred Compensation Plans

    Posted by Neil Jesani on December 2013

    A deferred compensation plan is a unique type of ratified contract between you, the employer, and your employees; it states that it is ok to pay them later for work done now, in a sense. More accurately, you would be paying them a sizable portion of income earned now in the future, so that the money can be used as part of a compensation package, or one of these kinds of plans:
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  • Post-Purchase Analysis: BOLI Work Is Not Over After Pre-Purchase Vetting

    Posted by Neil Jesani on September 2013

    Though pre-purchase analysis is of vital importance when entering into an agreement on a bank owned life insurance policy, the process of analysis does not stop there. There are many important elements that must be kept track of over the long term policy ownership period, in order to minimize risk, maximize opportunity, abide by the ever-changing legal regulations relating to BOLI, and generally protect one's investment.
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  • Comprehensive Pre-Purchase Analysis: The Key to Effective Investment in BOLI

    Posted by Neil Jesani on September 2013

    When it comes to bank owned life insurance pre-purchase analysis, a variety of US Government agencies offer some advice, and some regulations, that make for a strong starting point. The FDIC makes the general, blanket recommendation that any bank interested in purchasing and holding BOLI policies, a detailed, high-quality, well thought out risk management plan should be put into place prior to any purchase.
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  • Pension Benefit Guaranty Corporation Overview

    Posted by Neil Jesani on April 2013

    The Pension Benefit Guaranty Corporation (PBGC) is an important independent government agency that provides pension benefits and insures pension funds. Without this vital organization, millions of Americans could lose the pension benefits they worked hard to earn. Collectively, the PBGC guarantees retirement income for 44 million workers that participate in some 38,000 defined benefit pension plans. Today, the organization provides retirement income for approximately
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  • Demystifying Traditional Defined Benefit Plans

    Posted by Neil Jesani on April 2013

    Traditional Defined benefit plans, which are often called ""pensions,"" are retirement plans for which your employer does all of the work. Your employer provides all of the contributions, and your employer decides how to invest the funds. The number of these benefit plans has diminished in recent years as employers have begun to favor defined contribution plans like 401(k)s and 403(b)s that require you to contribute your own funds and make your own investment decisions. However, if your employer still offers a pension or cash-balance benefit plan, then you should definitely participate.
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  • Understanding What is a defined benefit pension plan!

    Posted by Neil Jesani on April 2013

    It’s not surprising that many people wonder, “What is a defined benefit pension plan?” Nowadays, larger companies are more likely to establish a 401(k) retirement plan than a defined benefits plan. It’s not hard to understand why this is true if you know the difference between the two types of benefits plans.
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  • The Pros And Cons Of Deferred Compensation Plans

    Posted by Neil Jesani on January 2013

    Life insurance offers financial protection for billions of people all over the world. Life insurance policies are not only purchased by individuals, but they are also purchased by numerous companies and institutions, as they use these policies for multiple purposes, such as, to offer liquidity. Nevertheless, the rules relevant to corporate ownership of life policies are a lot more complicated than the ones for individuals.
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  • The 2 Main Types of Deferred Compensation Plans

    Posted by Neil Jesani on January 2013

    As a successful business owners, you hold a certain level of interest in protecting your current assets while simultaneously continuing to grow your personal wealth. Similarly, you value the livelihood of your employees, from the top-level management executives to the lower-tier associates. Although you would like all of your employees to be able to receive benefits and plan for their retirement, however, it may seem unfair to reward entry-level workers with the same type of compensation as those professionals who have been working by your side and proving their loyalty for years. It is for this very reason that business owners have the option of choosing between the two main types of deferred compensation plans - qualified or non-qualified programs.
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  • 10 Attributes Of Deferred Compensation Plans

    Posted by Neil Jesani on January 2013

    Let’s say you are the owner or President of a Fortune 500 company, or other corporation that operates with a large amount of capital in a highly-competitive industry. You have a team of highly-compensated IT executives who provide the blanket security for your entire enterprise, and are largely responsible for keeping in check the sanctity of your network, and keeping you near the top or at the top of your niche. The issue is, if this select group of employees are so very good at their jobs, and your industry is really competitive, then you may not be able to retain them very easily with a selection of insurance or investment vehicles available to the general workforce.
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  • What is a Deferred Compensation Plan?

    Posted by Neil Jesani on January 2013

    When planning for the future of yourself and of your valued employees, it's important to have a firm grasp on your options for retirement planning and wealth generation. Although you may be familiar with the concept of investment and retirement plans, you may not recognize all of the terminology.
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  • 4 Types of Non Qualified Deferred Compensation Plans

    Posted by Neil Jesani on January 2013

    Deferred compensation plans are a great way for business owners to grow their own wealth, protect their assets, and provide for their employees. These types of programs allow businesses and their employees to strike up a financial agreement wherein a set set amount of the employee's income is withheld until a later date. While most business owners are familiar with the more popular qualified plans, such as 401(k) programs and SIMPLE IRAs, however, there are also a number of non qualified deferred compensation plans that can greatly benefit executive officers and other key employees without requiring businesses to adhere to stringent regulations and reporting requirements mandated by the IRS.
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  • 457 Plans: 9 Things You Should Know

    Posted by Neil Jesani on January 2013

    457 Retirement Plan Never heard of the 457 retirement plan? That's no surprise, since only specific employees qualify for it. If you do, though, this little known deferred compensation plan has some major advantages as compared to other better known plans like the 401(k) or 403(b).
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  • Untangling the 457 Plan and Its Benefits

    Posted by Neil Jesani on January 2013

    In the high-end corporate world, there are multiple kinds of life insurance available for high-income employees; such as Bank Owned Life Insurance, Section 162 Bonus Plans, Corporate Owned Life Insurance and robustly compensatory non-qualified deferred compensation plans (NQDCs). Are there any insurance policy analogs that enjoy tax-deferral status – as well as some of the benefits provided under ERISA guidelines – for the more pedestrian employee? It turns out that the 457 plan is just such an option; and, after the insurance reform instituted by the Economic Growth and Tax Relief Reconciliation Act of 2001, has enjoyed a timely relaxation of restrictions that plagued its former constitution – and is now more in line with the popular 401(k) plan.
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  • 4 Things to Understand About Bank Owned Life Insurance Tax

    Posted by Neil Jesani on January 2013

    Bank owned life insurance (often referred to as BOLI) has developed into a heavily accepted and popular tool for banks and financial institutions all across the nation. Big, ""major league"" banks and smaller community institutions alike are all able to offset the growing costs of their employee benefits programs with bank owned life insurance tax deferred policies. In addition to accumulating tax-free wealth, BOLI is able to work has a highly effective financing tool, can offer favorable yields via cash accumulation, can help diversify a bank's investment portfolio, and works as a means for enhancing balance sheets.
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  • Cash Investment Policy Statements: Developing and Maintaining a Corporate Cash Management Plan

    Posted by Neil Jesani on January 2013

    Throughout the past several years, the cash management industry has evolved into a multi-faceted and complex investment strategy. For those corporate treasurers who have not yet established a corporate cash investment policy statement (IPS) or have not recently evaluated their current IPS, now is the time to act.
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  • Bank Owned Life Insurance Defined!

    Posted by Neil Jesani on December 2012

    In a time when employee compensation plans are becoming more and more difficult to fund with solely company assets, due to the rising costs of maintaining them, employers of high-end talent are looking for methods via which to stem the tide of decreasing benefits and retain their top executives. For one of the better ways to accomplish this, you need look no further than the bank owned life insurance definition – which is more succinctly known as the BOLI plan – which is specifically made for employees in high positions within your company.
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  • Understanding Company Owned Life Insurance Taxation

    Posted by Neil Jesani on December 2012

    As for profit enterprises, banks innately seek growth and profitability. These institutions compete with one another, other financial entities, and non-financial industries to attract and retain the best talent. Banks must try to balance funding an attractive employee benefits programs with the escalating cost of employee benefits. Increasingly, many banks purchase bank owned life insurance (BOLI). BOLI consists of a single premium life insurance contract that covers the lives of directors, officers and key employees of the bank. The bank pays the premiums for the coverage and is the beneficiary of the policy. BOLI helps banks offset the cost of financing existing and new employee benefits plans.
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  • Accounting for Bank Owned Life Insurance: 5 Key Provisions

    Posted by Neil Jesani on December 2012

    Bank Owned Life Insurance offers banks of all sizes flexibility to design tax-favored employee compensation plans for key bank executives. Proper accounting for bank owned life insurance due to FDIC and Federal Reserve guidelines is crucial to minimize the risk of these programs while optimizing the benefits. This article will examine the key provisions and requirements of accounting for bank owned life insurance.
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  • 10 Tips to Consider with the COLI/BOLI Policies

    Posted by Neil Jesani on November 2012

    As fluctuating federal tax rates seem to rise on average – particularly for the more highly-compensated, and the standard employee benefits packages experience rising costs that make it harder for you to competitively compensate your top-earning executives and managers, corporations are turning to the COLI BOLI tandem as an alternative financial investment vehicle. Specifically, COLI BOLI stands for corporate owned life insurance and bank owned life insurance; their primary benefit (among several) is their ability to finance an employee’s post-retirement life and, in the event of unexpected death or loss, protect the issuing company.
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  • Employer Owned Life Insurance Can Provide a Tax-Free Financial Cushion When You Most Need It

    Posted by Neil Jesani on November 2012

    Employer owned life insurance (EOLI) can be a boon for your business if you purchase policies on your key management employees. Why? Because if one of your essential employees dies, you can use the death benefit proceeds from your EOLI policy to keep your business operational. Use this ""financial cushion"" to hire a replacement, offer incentive packages so as to entice hard-to-get talent to come and work for you, and fund benefits packages for your employees. Employer owned life insurance is also know as corporate owned life insurance for larger companies.
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  • 5 Ways Bank Owned Life Insurance (BOLI) Can Improve Banks' Bottom Lines

    Posted by Neil Jesani on November 2012

    What do you think of when you think of ""life insurance""? Chances are, you think of life insurance that's there to provide for an individual's family and other loved ones, people who depend on that person's income, in the event of his or her untimely demise. As the premise goes, if you're smart, you buy a life insurance policy to make sure that your loved ones will have a secure financial future even if you and therefore your paycheck aren't going to be there anymore to provide for them.
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  • Two Key Benefits of Business Owned Life Insurance

    Posted by Neil Jesani on November 2012

    Two factors are of major concern for success in today's business world. Having cash to meet emergencies and fund growth is vital. Even four years after the global financial crisis, bank funding for small business remains restricted.
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  • 5 Types of Life Insurance on Employees That Add Value To Your Business

    Posted by Neil Jesani on October 2012

    Many people have the mistaken notion of associating life insurance with death. That is, you have to die in order to get the benefits. This is a myth that is preventing them from taking advantage of the many benefits of life insurance. In fact, life insurance is a powerful financial tool that protects life and adds value to life itself.
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  • Accounting for Corporate Owned Life Insurance

    Posted by Neil Jesani on October 2012

    Business entities face the possibility of considerable financial setbacks related to the loss of key employees. Corporate owned life insurance, often known as COLI, offers a way to hedge your bets against future losses. Your company purchases a policy on owners, executives and/or key employees and is named as the beneficiary on the insurance contract. The company pays the premiums, and ultimately, enjoys the benefits. Accounting for both the expense and income of a cash value policy presents some challenges. Life insurance does not fall under a typical asset category, and generally accepted accounting principles offers no direct guidance on how to record entries related to the expense. For profit enterprises have several different options when accounting for COLI.
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  • 3 Ways Company Life Insurance on Employees Helps Your Business

    Posted by Neil Jesani on October 2012

    When you take out company life insurance on employees, you help your business in several key ways. Firstly, your shareholders can feel more secure that the company will stay solvent in the unfortunate event of an executive's passing. Secondly, the benefit acts as a key incentive for your executives to stay with your company. Thirdly, a cash value company life insurance on employees can guarantee your company a more impressive rate of return than any other safe kind of investment can provide.
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  • Devising a Revenue-Accretive Alternative Investment Strategy for Corporate Cash

    Posted by Neil Jesani on October 2012

    Holding on to adequate reserves of cash is a necessity for operating a company. The problem with it is that it dooms a large part of a company’s asset base to being unproductively saddled with low returns. Coming up with an alternative investment strategy for corporate cash can’t mitigate all of the financial drawbacks of maintaining a liquid reserve, but can ensure that businesses don't leave any potential interest income on the table.
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  • Corporate Cash Overseas: Why is it there, and will it be returning to the States anytime soon?

    Posted by Neil Jesani on October 2012

    With more than one trillion dollars in corporate cash and short-term investment being held overseas, it's no wonder that off-shore accounting has been a hot topic as of late. Many corporations find themselves wondering if this practice is worth looking into, and what the legalities are. In this post we will explore the reasoning behind stockpiling corporate cash overseas, its legal foundation, and its outlook.
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  • Corporate Cash Deployment: Conservative Investments and Liquidity Still the Name of the Game

    Posted by Neil Jesani on October 2012

    Over the last few years, many of the largest companies in America have been keeping their large cash reserves on the sidelines due to the economic uncertainty of the modern market. Estimates place the amount of sidelined cash at anywhere from $1.5 trillion to $2.8 trillion, a considerably large sum being stockpiled due to a variety of factors, including the European debt crisis, the US recession, extremely low interest rates, severe market fluctuations, unpredictable commodity prices,
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  • Reasons for the Increase in the Overall Corporate Cash Reserve

    Posted by Neil Jesani on October 2012

    Since the horrible cash crisis of 2008, business are holding onto a significant amount of more cash. According to the Harvard Law School Forum on Corporate Governance and Financial Regulation, in 1980 firms only held 12 percent of assets in cash. But this number almost doubled by 2011, amounting to approximately 22 percent of assets being held in the corporate cash reserve. The rise in the corporate cash reserve has caused significant speculation toward the reason or reasons for this significant spike. The following information presents potential causes for why corporations are holding onto more cash than ever before in history.
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  • Getting the Most Out of Corporate Owned Life Insurance Policies

    Posted by Neil Jesani on September 2012

    For business owners there are few things more important than protecting your assets and wealth, regardless of any unforeseen or unpredictable circumstances that may arise. The death of a key employee, for example, could be a major problem for your company. When a critical team member passes, you may spend a great deal of time seeking out and training a worthy replacement, and you may deal with issues regarding unfinished work that could be costly. The savvy business owner is prepared for these types of situations through buying corporate owned life insurance policies for the VIPs of the company.
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  • 3 Reasons to Take Advantage of the 457 Deferred Compensation Plan, If You Qualify

    Posted by Neil Jesani on January 2012

    The 457 deferred compensation plan is a retirement plan only available to specific types of employees. It's a great way to save for your retirement as long as you qualify. It gives you a means by which to save money for retirement tax-deferred, similar to a 401(k) or 403(b). It's available to you if you work for a trade organization, a charitable organization or foundation, state or local government, hospital or an educational organization, especially if you are a key employee to the business's operation, like upper management. As with other types of retirement accounts, the money is tax-deferred until you withdraw it at retirement age. Why is it advantageous to you to opt
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  • Exotic Corporate Cash Investments Attractive in Low-Yield Environment

    Posted by Neil Jesani on October 2011

    Institutions and endowments have used exotic or alternative investment for decades. During the last boom years, more wealthy individuals and corporations added these instruments to get more diversification and earn hefty returns. The financial crisis of 2008 propelled alternative investments into the limelight. In the aftermaths of the meltdown, many investors grew wary of these complicated investment strategies-- collateralized debt obligations, auction-rate preferred securities and other instruments. Consequently, many companies have modified their investment guidelines regarding asset protection and preservation.
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