American Benefit Corporation
Deferred Compensation Fills a Void American Benefit Corporation specializes in developing strategic solutions to executive benefit needs.
At American Benefit Corporation, we design, fund and manage executive non-qualified benefit plans for highly compensated corporate executives who wish to reduce current income taxes and form personal capital on a tax efficient basis. Established more than 30 years ago, we serve the unique needs of executives in numerous corporations with their personal capital formation objectives.
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American Benefit Corporation and its representatives are presently licensed to operate in particular states of jurisdiction and may operate only where licensed and, with regard to any particular product, where that product has been approved. American Benefit Corporation and/or James W. Herlihy are currently licensed to market insurance and investment products in Arizona, Connecticut, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Vermont.
The insurance and/or investment product information on this site is not intended for distribution or use in any states or jurisdictions where our company, its products, or representatives are not so licensed or approved.
Securities offered through M Holdings Securities, Inc. A Registered Broker/Dealer, member FINRA/SIPC. American Benefit Corporation is independently owned and operated.
American Benefit Corporation is a member of M Financial Group. Please go to www.mfin.com/DisclosureStatement for further details regarding this relationship.
Featured Case Study
Reduce Turnover With Corporate Match
A large east coast grocery store chain employed pharmacists in each of their stores. They were experiencing 40% turnover each year within this group and wanted a benefit plan that would increase their retention.
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Deferred Compensation Fills a Void
Shortfall
An Example -
Qualified retirement plans often cannot provide adequate retirement income for highly compensated key employees. A Deferral plan may provide the extra retirement income. But, which employees are most in need of the plan? An Example:
- - Three Employees, each 45 years Old
- - Each plans to retire at 65
- - Each salary will increase 3% annually
- - Each makes the maximum allowable contribution to his/her 401(k) Plan
- - Each earns exactly the same return on his/her investments
- - Each requires 70% of his/her final salary for retirement
|
Employee A |
Employee B |
Employee C |
|
Current Salary: $50,000 |
Current Salary: $100,000 |
Current Salary: $300,000 |
|
401(k) Balance @ 7%: $25,000 |
401(k) Balance @ 7%: $50,000 |
401(k) Balance @ 7%: $100,000 |
|
Final Pay: $87,675 |
Final Pay: $175,351 |
Final Pay: $526,052 |
|
Estimated Retirement Income |
Estimated Retirement Income |
Estimated Retirement Income |
|
401(k): $82,631 |
401(k): $92,558 |
401(k): $129,838 |
|
Social Security: 17,292 |
Social Security: 24,420 |
Social Security: 25,536 |
|
Total: 99,923 |
Total: 116,978 |
Total: 155,374 |
|
Income Needed: 61,373 |
Income Needed: 122,745 |
Income Needed: 368,236 |
|
Annual Excess: $38,550 |
Annual Excess: ($5,767) |
Annual Excess: ($212,862) |
|
Income Replacement Ratio: 114% |
Income Replacement Ratio: 67% |
Income Replacement Ratio: 30% |
|
Sufficient Retirement Income Expected |
Insufficient Retirement Income Expected |
Insufficient Retirement Income Expected |
Securities offered through M Holdings Securities, Inc., a Registered Broker/Dealer, Member FINRA/SIPC. American Benefit Corporation is independently owned and operated.