Financing Services

Through rigorous analysis, we help companies identify optimal financing solutions that address the needs of the corporation, shareholders, and employees.  The Todd Organization often works closely with chief financial officers, treasurers, and other financial executives to formulate solutions that increase earnings and strengthen the balance sheet.

There are three primary financing alternatives for non-qualified supplemental retirement plans.

• Self-financing – Benefit obligations are paid out of current income when they become due.

• Equity financing– There is a managed portfolio of investments, most often mutual funds.

• Institutional life insurance financing– Deferrals made by plan participants and any company match are used to purchase cash value institutional life insurance to offset the benefit liabilities.

non-qualified supplemental retirement plan liabilities often grow significantly.  Therefore, analysis of alternative financial vehicles and financing strategies should be comprehensive.  Factors that should be considered when evaluating financing alternatives include:

• Pre-tax compounding at market rates generates accreting balances.

• Liabilities often grow faster than the average growth rate of the balance sheet.

• Substantially unfunded plans may lead to rating agency concerns because of mounting liabilities.

• The longer a company takes to finance plans, the greater will be its asset-liability mismatch and the more negative the financial impact.

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• About the Firm
  • Overview
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• Professional Team
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• Core Services
  • Executive Benefits
    • Non-qualified Deferred Compensation
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