PRM Financial Group
Reality-Based Planning™
PRM Financial Group
2 Northfield Plaza, Suite 255
Northfield, IL 60093
847-386-7692
Fax 847-386-7154
e-mail: peter@prmfinancial.com
PRM FINANCIAL GROUP
COMPANY OVERVIEW
• Located in Northfield, IL
• Network of Actuaries, TPAs, advanced planning
experts, marketing, sales, & underwriting
assistance
• Reality-based planning™
• Dealing with real rather than ideal situations
• Provide meaningful employer focused benefits,
meet budgetary restraints, and achieve
management strategic goals
• Optimized for today, enduring through tomorrow
PRM FINANCIAL GROUP
COMPANY OVERVIEW
• Serve the benefits, retirement, and tax planning needs
of individuals, small businesses and professional
companies
PRM FINANCIAL GROUP
COMPANY OVERVIEW
• Serve the benefits, retirement, and tax planning needs
of individuals, small businesses and professional
companies
• Partner with CPAs, financial and legal consultants,
sales professionals, and other advisors to provide
individuals and small business clients with a wide
range of planning solutions
PRM FINANCIAL GROUP
COMPANY OVERVIEW
• Serve the benefits, retirement, and tax planning needs
of individuals, small businesses and professional
companies
• Partner with CPAs, financial and legal consultants,
sales professionals, and other advisors to provide
individuals and small business clients with a wide
range of planning solutions
• Design customized plans that reach the client’s goals
while respecting budgetary constraints
PRM FINANCIAL GROUP
COMPANY SERVICES
• Health Insurance
• Telemedicine
• Individual and Small Business Insurance Planning
PRM FINANCIAL GROUP
COMPANY SERVICES
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•
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Health Insurance
Telemedicine
Individual and Small Business Insurance Planning
Multiplan
• Highly specialized planning concept
PRM FINANCIAL GROUP
COMPANY SERVICES
•
•
•
•
Health Insurance
Telemedicine
Individual and Small Business Insurance Planning
Multiplan
• Highly specialized planning concept
• Retirement Plan Comparisons
• Analysis of available and appropriate plan options for educated
client decisions
PRM FINANCIAL GROUP
COMPANY SERVICES
•
•
•
•
Health Insurance
Telemedicine
Individual and Small Business Insurance Planning
Multiplan
• Highly specialized planning concept
• Retirement Plan Comparisons
• Analysis of available and appropriate plan options for educated
client decisions
• Single Employer Welfare Plan (SEWP)
• An employer sponsored welfare benefit plan
• Designed to fund post retirement medical expenses on a pre-tax
basis
PRM FINANCIAL GROUP
COMPANY SERVICES
• Education
• Qualified Retirement Plans
• 419A(c)(2) Single Employer Welfare Plans
• Other relevant, unique, owner-focused concepts
PRM FINANCIAL GROUP
COMPANY SERVICES
• Education
• Qualified Retirement Plans
• 419A(c)(2) Single Employer Welfare Plans
• Other relevant, unique, owner-focused concepts
• Marketing Support
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•
•
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Marketing Pieces
E-mail content and/or campaign management
Contact lists and calling programs
Others as needed
PRM FINANCIAL GROUP
COMPANY SERVICES
• Focus for Today…
• Single Employer Welfare Plan (SEWP)
•An employer sponsored welfare benefit plan
•Designed to fund post retirement medical expenses on a pre-tax
basis
PRM FINANCIAL GROUP
THE GOAL
• Help you close more business
• We are in the game with you…not on the sideline
PRM FINANCIAL GROUP
THE GOAL
• Help you close more business
• We are in the game with you…not on the sideline
• Be a trusted resource and partner for you
• Qualified Retirement Plans
• 419A(C)(2) Single Employer Welfare Plans
• Other relevant, unique, and owner-focused concepts
PRM FINANCIAL GROUP
THE GOAL
• Help you close more business
• We are in the game with you…not on the sideline
• Be a trusted resource and partner for you
• Qualified Retirement Plans
• 419A(C)(2) Single Employer Welfare Plans
• Other relevant, unique, and owner-focused concepts
• Do the dirty work
•
•
•
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Gather information and options
Filter through the data
Make the proposals digestible and saleable!
Provide and manage the necessary documents
PRM FINANCIAL GROUP
SINGLE EMPLOYER WELFARE PLAN (SEWP)
• Create
• Protect
• Preserve
A stand alone program or companion to
retirement planning
PRM FINANCIAL GROUP
SEWP: THE NEED
• People are living longer than ever before
• There is a 62% chance that at least one spouse can
expect to survive to age 90
PRM FINANCIAL GROUP
SEWP: THE NEED
• People are living longer than ever before
• There is a 62% chance that at least one spouse can
expect to survive to age 90
• Health care costs continue to rise faster than rate
of inflation
• It has outpaced inflation for 20 years!
PRM FINANCIAL GROUP
SEWP: THE NEED
• People are living longer than ever before
• There is a 62% chance that at least one spouse can
expect to survive to age 90
• Health care costs continue to rise faster than rate
of inflation
• It has outpaced inflation for 20 years!
• It is widely believed that Medicare is in deep
trouble
• Deficit nearly twice as large as the Social Security
deficit
PRM FINANCIAL GROUP
SEWP: THE NEED
•In 2010, approximately 24% of a retiree’s after-tax
income was needed to pay for health care costs
PRM FINANCIAL GROUP
SEWP: THE NEED
•In 2010, approximately 24% of a retiree’s after-tax
income was needed to pay for health care costs
• Approx. 29% in 2020
PRM FINANCIAL GROUP
SEWP: THE NEED
•In 2010, approximately 24% of a retiree’s after-tax
income was needed to pay for health care costs
• Approx. 29% in 2020
• Approx. 35% in 2030
PRM FINANCIAL GROUP
SEWP: THE REASON
• Longer lives
PRM FINANCIAL GROUP
SEWP: THE REASON
• Longer lives
• Advances in medical technology
• Leading to better, but more expensive treatments
PRM FINANCIAL GROUP
SEWP: THE REASON
• Longer lives
• Advances in medical technology
• Leading to better, but more expensive treatments
• High administration costs
• Fragmented health care delivery and financing system
PRM FINANCIAL GROUP
SEWP: THE REASON
• Longer lives
• Advances in medical technology
• Leading to better, but more expensive treatments
• High administration costs
• Fragmented health care delivery and financing system
• Existence of many highly paid medical specialists
• They are doing amazing things, but it is expensive
PRM FINANCIAL GROUP
SEWP: THE REASON
• Longer lives
• Advances in medical technology
• Leading to better, but more expensive treatments
• High administration costs
• Fragmented health care delivery and financing system
• Existence of many highly paid medical specialists
• They are doing amazing things, but it is expensive
• Prescription Drugs
• The number of drugs (expensive) that represent miracle
cures
• The number of people who are required to take drug
treatments
PRM FINANCIAL GROUP
SEWP: A SOLUTION
• Post Retirement Medical Planning is a solution
• This is the only plan that Penn Mutual allowed after
conducting“Third Party Planner” audit
PRM FINANCIAL GROUP
SEWP: A SOLUTION
• Post Retirement Medical Planning is a solution
• This is the only plan that Penn Mutual allowed after
conducting“Third Party Planner” audit
• Its up to us to help our clients secure their financial
futures!
• Most people are unaware of this planning concept
PRM FINANCIAL GROUP
SEWP: A SOLUTION
• Post Retirement Medical Planning is a solution
• This is the only plan that Penn Mutual allowed after
conducting“Third Party Planner” audit
• Its up to us to help our clients secure their financial
futures!
• Most people are unaware of this planning concept
• Plan today for the costs of tomorrow
• They are inevitable
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• A Welfare benefit plan designed to fund post
retirement medical expenses on a pre-tax basis
• Supplements Medicare
• Allows clients to use their dedicated retirement funds for their
retirement rather than for medical expenses
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• A Welfare benefit plan designed to fund post
retirement medical expenses on a pre-tax basis
• Supplements Medicare
• Allows clients to use their dedicated retirement funds for their
retirement rather than for medical expenses
• Annual funding contributions accumulate the cash
value necessary, at a specific retirement time, to pay
for medical expenses for the lifetime of the participant
and eligible dependents
PRM FINANCIAL GROUP
SEWP: OVERVIEW
Contributions
to the plan =
tax
deductible
Cash Value
Growth = tax
free
Withdrawals
During
Retirement =
*tax free
* When taken for allowable medical expenses
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Contributions are based on actuarial
calculations
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Contributions are based on actuarial
calculations
• Spouses and dependants can be included in
plan funding
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Contributions are based on actuarial
calculations
• Spouses and dependants can be included in
plan funding
• In the event that the participant does not live to
retirement or completion of the plan, a death
benefit is paid to the beneficiary
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Internal Revenue Code Section 419A(c)(2) authorizes
current funding of post-retirement life and medical
benefits
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Internal Revenue Code Section 419A(c)(2) authorizes
current funding of post-retirement life and medical
benefits
• Provided that the benefit reserves
• Are actuarially determined
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Internal Revenue Code Section 419A(c)(2) authorizes
current funding of post-retirement life and medical
benefits
• Provided that the benefit reserves
• Are actuarially determined
• Are levelly funded over the working lives of participating
employees
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
• Premium payments for Medicare Part B
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
• Premium payments for Medicare Part B
• Supplemental insurance
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
• Premium payments for Medicare Part B
• Supplemental insurance
• Medical expenses not covered by Medicare
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
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•
•
•
Premium payments for Medicare Part B
Supplemental insurance
Medical expenses not covered by Medicare
Prescription drugs
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
•
•
•
•
•
Premium payments for Medicare Part B
Supplemental insurance
Medical expenses not covered by Medicare
Prescription drugs
Rehabilitative and/or Long-Term care
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
•
•
•
•
•
•
Premium payments for Medicare Part B
Supplemental insurance
Medical expenses not covered by Medicare
Prescription drugs
Rehabilitative and/or Long-Term care
Hospice care
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
•
•
•
•
•
•
•
Premium payments for Medicare Part B
Supplemental insurance
Medical expenses not covered by Medicare
Prescription drugs
Rehabilitative and/or Long-Term care
Hospice care
Transportation and lodging expenses incurred in the process of
obtaining medical treatment
PRM FINANCIAL GROUP
SEWP: OVERVIEW
• Medical benefits* may include, but are not limited to:
•
•
•
•
•
•
•
Premium payments for Medicare Part B
Supplemental insurance
Medical expenses not covered by Medicare
Prescription drugs
Rehabilitative and/or Long-Term care
Hospice care
Transportation and lodging expenses incurred in the process of
obtaining medical treatment
• Durable equipment & supplies necessary to regain or maintain
physical well-being
*See IRC Section 213 for full list
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Focusing on funding for post-retirement
benefits addresses two vital issues
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Focusing on funding for post-retirement
benefits addresses two vital issues
• Creates means of dealing with real future
expenses whose costs might otherwise be
disastrous
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Focusing on funding for post-retirement
benefits addresses two vital issues
• Creates means of dealing with real future
expenses whose costs might otherwise be
disastrous
• Creates demand for substantial employer
contributions that are deductible under the Code
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Permanent insurance works because
• One contract can provide the features that serve both pre and
post- retirement benefit needs
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Permanent insurance works because
• One contract can provide the features that serve both pre and
post- retirement benefit needs
The cost of the contract is divided into two elements
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Permanent insurance works because
• One contract can provide the features that serve both pre and
post- retirement benefit needs
The cost of the contract is divided into two elements
• The Pre-retirement Death Benefit
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Permanent insurance works because
• One contract can provide the features that serve both pre and
post- retirement benefit needs
The cost of the contract is divided into two elements
• The Pre-retirement Death Benefit
• Everything Else
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Permanent insurance works because
• One contract can provide the features that serve both pre and
post- retirement benefit needs
The cost of the contract is divided into two elements
• The Pre-retirement Death Benefit
• Everything Else
• All of which is attributed to post-retirement benefit funding and to
calculate post-retirement funding contributions
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Insurance Companies provide the amount of
annual contribution necessary to reach the target
amount of cash value at the specified time
PRM FINANCIAL GROUP
SEWP: PLAN FUNDING
• Insurance Companies provide the amount of
annual contribution necessary to reach the target
amount of cash value at the specified time
• Based on level funding over the working lives of
the participants
PRM FINANCIAL GROUP
SEWP: PLAN DESIGN
• Customized plan design is based on company profile,
desired company spending goal, and overall plan
objectives
PRM FINANCIAL GROUP
SEWP: PLAN DESIGN
• Customized plan design is based on company profile,
desired company spending goal, and overall plan
objectives
• ERISA compliant plan design options focused on
satisfying the business owner’s objectives and the
corporations needs
PRM FINANCIAL GROUP
SEWP: CLIENT PROFILE
• Successful Small Businesses
PRM FINANCIAL GROUP
SEWP: CLIENT PROFILE
• Successful Small Businesses
• Must be a business entity
PRM FINANCIAL GROUP
SEWP: CLIENT PROFILE
• Successful Small Businesses
• Must be a business entity
• Cannot be a Sole Proprietor
PRM FINANCIAL GROUP
SEWP: CLIENT PROFILE
• Successful Small Businesses
• Must be a business entity
• Cannot be a Sole Proprietor
• The fewer employees, the better
PRM FINANCIAL GROUP
SEWP: CLIENT PROFILE
• Successful Small Businesses
• Must be a business entity
• Cannot be a Sole Proprietor
• The fewer employees, the better
• Disparity in age between the business owner
and other employees is a plus
PRM FINANCIAL GROUP
SEWP: CLIENT PROFILE
• Successful Small Businesses
• Must be a business entity
• Cannot be a Sole Proprietor
• The fewer employees, the better
• Disparity in age between the business owner
and other employees is a plus
• Able to make annual contributions for at least 5
years
PRM FINANCIAL GROUP
SEWP: SUMMARY
• Contributions to fund SEWP approx. 95%
Deductible
PRM FINANCIAL GROUP
SEWP: SUMMARY
• Contributions to fund SEWP approx. 95%
Deductible
• Funds disbursed to pay post-retirement medical
benefits generally non-taxable
PRM FINANCIAL GROUP
SEWP: SUMMARY
• Contributions to fund SEWP approx. 95%
Deductible
• Funds disbursed to pay post-retirement medical
benefits generally non-taxable
• Participants are taxed only on current economic
benefit value of pre-retirement death benefit
(Table 2001)
PRM FINANCIAL GROUP
SEWP: SUMMARY
• Contributions to fund SEWP approx. 95%
Deductible
• Funds disbursed to pay post-retirement medical
benefits generally non-taxable
• Participants are taxed only on current economic
benefit value of pre-retirement death benefit
(Table 2001)
• Single Employer Welfare Plan is designed to
accommodate a variety of company profiles
PRM FINANCIAL GROUP
OUR GOAL
• We want to be your resource for Pension, Benefits,
and Tax Planning Solutions
PRM FINANCIAL GROUP
OUR GOAL
• We want to be your resource for Pension, Benefits,
and Tax Planning Solutions
• We will design attractive plans that provide meaningful
benefits, meet budgetary restraints and achieve
management strategic goals
PRM FINANCIAL GROUP
OUR GOAL
• We want to be your resource for Pension, Benefits,
and Tax Planning Solutions
• We will design attractive plans that provide meaningful
benefits, meet budgetary restraints and achieve
management strategic goals
• Reality-based planning™, plan designs that are
optimized for today and endure through tomorrow
PRM FINANCIAL GROUP
CONTACT US
Office: 847-386-7692
My e-mail address: peter@prmfinancial.com
PRM FINANCIAL GROUP
THANK YOU
Reality-based planning™
Optimized for today
Enduring through tomorrow