Comments on: What are Deferred Compensation Plans? http://www.goodfinancialcents.com/deferred-compensation-plans-rules/ Helping You Make Cents Of Investing and Financial Planning Mon, 22 Feb 2010 18:30:30 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Economy and your finances carnival Dec 6 2009 http://www.goodfinancialcents.com/deferred-compensation-plans-rules/comment-page-1/#comment-5224 Economy and your finances carnival Dec 6 2009 Sun, 06 Dec 2009 08:04:05 +0000 http://www.goodfinancialcents.com/?p=9587#comment-5224 [...] Rose presents What are Deferred Compensation Plans? posted at Jeff [...] [...] Rose presents What are Deferred Compensation Plans? posted at Jeff [...]

]]> By: SailboatFamily http://www.goodfinancialcents.com/deferred-compensation-plans-rules/comment-page-1/#comment-5188 SailboatFamily Tue, 01 Dec 2009 20:47:52 +0000 http://www.goodfinancialcents.com/?p=9587#comment-5188 Another important consideration is the vehicle used by a company for DCP, especially with non-qualified funds, relates to the availability of the funds to creditors should the company go insolvent. For example, if my employer, who leverages a a Rabbi trust as the mechanism, goes defunct before all the DCP monies are paid back out to me, the money that is left becomes available to the creditors of my company and I loose it. It is one of the, if not the, consideration to make when deciding to leverage a DCP. That is, you must strongly consider how solvent your company is/will be when you expect your payouts to complete. It is hard to predict out 20 years, let alone 5. So, read very very very carefully the rules for your DCP and understand your true risk. -Bill .-= SailboatFamily´s last blog ..<a href="http://sailboatfamily.blogspot.com/2009/12/less-than-365.html" rel="nofollow">Less than 365!</a> =-. Another important consideration is the vehicle used by a company for DCP, especially with non-qualified funds, relates to the availability of the funds to creditors should the company go insolvent.

For example, if my employer, who leverages a a Rabbi trust as the mechanism, goes defunct before all the DCP monies are paid back out to me, the money that is left becomes available to the creditors of my company and I loose it. It is one of the, if not the, consideration to make when deciding to leverage a DCP. That is, you must strongly consider how solvent your company is/will be when you expect your payouts to complete. It is hard to predict out 20 years, let alone 5. So, read very very very carefully the rules for your DCP and understand your true risk.

-Bill
SailboatFamily´s last blog ..Less than 365! My ComLuv Profile

]]>