Health, Wealth and Happiness to you and yours in this next decade 2020!
4th Quarter
2019

ISSUE
No. 19

  IZALE Financial Group eNews
STAY INFORMED WITH IZALE

It is a time of making new memories, celebrating with family and friends, and preparing for turning the page on the calendar to a new year.  We are pleased in this eNews to announce our latest partnership with Elevate, a banking community designed to educate, connect and inspire. 
 
This summer we asked our clients to share with us key words that represented IZALE. The consistency of the message depicted here was what I had hoped to accomplish when establishing my company.  

We hope you enjoy this month's articles and wish you healthy and prosperous 2020!  
 
Happy H olidays, Scott & Your Friends at IZALE  

 
Scott Richardson, Brenda Haag, Bruce Barge, Chris Richardson, Deb Hardimon, Fannie Mae Pantaleon, Gary Wilberg, Jeff Prescher, Joe Tripalin, Patrick Costello and Phil Aderton
 
Looking Forward
Want to Provide a Benefit and Save Money?

If you're an executive at a financial institution, whether it is a bank or credit union, you've likely heard of 457(f) plans or Supplemental Executive Retirement Plans or SERP.

Their concept is simple - they provide cash payouts to reward executives for retention and performance and are typically set up to be paid at retirement. These plans can be powerful in attracting and retaining your key team members; they are relatively easy to set up and require basic accrual accounting. Under current law, income tax is deferred (that's good!) until the executive becomes vested or the money is no longer at risk of forfeiture. Even though income taxes are deferred, we are at an historical low in terms of federal tax liability and many expect future rates to rise...perhaps at the very moment your SERP is eventually taxed.

So what can you do to mitigate the risk of future tax increases?
  • Use a Restricted Executive Bonus Agreement or REBA instead of a SERP. Not only can the recipient avoid taxes when their payout begins, but the financial institution providing the benefit can reduce the expense associated with the benefit by 20%-30%.
  • REBAs require the executive to purchase and own a life insurance policy. They take advantage of the tax treatment associated with insurance policies. Life insurance values grow tax-deferred, distributions can be income-tax-free, and death benefits are income-tax-free. There is nothing like it in the tax code.
  • Under a REBA the institution agrees to pay the premiums as long as the executive remains employed. Each premium payment is a current expense so there is no liability to accrue, and each payment is current ordinary income to the executive. The policy is handcuffed with a restrictive endorsement that prevents the executive from taking distributions too soon. While the executive can be vested in the cash value, certain terminations can cause forfeiture of the policy.
Contact us if you're interested in hearing more about how a REBA can provide tax-free distributions while lowering expenses for your institution. We can share success stories of how we've helped clients of all sizes benefit from this powerful benefit design.

Chris Richardson, VP Sales
Announcing IZALE's Latest Partnership with Elevate!


At IZALE, relationships come first, and this mindset extends beyond our clients; it is the basis for all of our relationships, including partnerships. In tandem with our approach, IZALE is excited to announce a new partnership with Elevate, a company that has created a community for bankers built upon three simple principles: educate, connect, and inspire. Like IZALE, Elevate believes in the relationship model of banking and its foundation of trust, personal connections, and maintaining an enduring commitment to its customers.

Michael Delucchi Elevate Founder
Founder and  CEO, Michael Delucchi, began his career in community banking. Those roots remain the grounding force behind his philosophy of providing unique guidance to bankers and executing a consultative approach to education along with a strong focus on networking opportunities outside of the traditional conference space.

IZALE welcomes you to explore Elevate, where they understand how challenging it can be to budget for multiple conferences throughout the year in addition to the difficulties in having leadership out of the office. At Elevate, you can choose from just two out-of-the-box conferences. If you're a manager or C-level officer with vision and a desire to escalate your leadership development, then the Elevate Bankers Conference, April 14-16, Las Vegas, Nevada, is your destination for purposeful education, interactive peer-to-peer sessions, and customized workshops. Or are you a president, CEO, or director interested in building bridges, hearing from industry experts, and cultivating enduring connections? Welcome to Elevate2020, September 19-22, on the lush island of Maui, Hawaii.

And who among us doesn't know that time is a commodity? Attention is the new currency. At Elevate, get straight talk from bankers and thought leaders with ElevateTALKS, a podcast that offers flexibility, timely discussions, and show notes for internal training.

Connect with Elevate and learn how this unique approach to education and networking can benefit you and your bank in the New Year.

For more information, contact your IZALE Representative!
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IZALE WEBINAR W.O.W.S. ANYTIME!

Have you visted our online learning Video Library? We created a place for you to go 24/7 to discover more about the expert services we provide at IZALE. Current titles include:  The Art & Science of Executive Benefits, Demystifying BOLI with separate video tutorials for Banks and Credit Unions, and Split Dollar Loans.
Thanks for your time & attention. We understand the value of both! ~ Your Friends at IZALE Financial Group
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