Ken Clark

Certified Financial Planner

New About.com Article on Perkins Loan

March 18th, 2008 by admin

I just posted a new overview of Perkins Loans over on About.com… Click here to check it out! Thanks!-KenÂ

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New Article on About.com about PLUS Loans for College

March 14th, 2008 by admin

I just posted a new article on my About.com site giving an overview of PLUS Loans.

Click here to read it.

-Ken

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Check out Ken Clark’s on About.com

March 14th, 2008 by admin

Hey everyone!I’ve been hired as the College Savings Guide over at About.com… Be sure to visit me over there and sign up for my weekly newsletter!I’ll be posting links to my article on this blog as well.  -Ken Â

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What is the difference between a 401k and “supplemental executive compensation”?

September 22nd, 2007 by admin

401k’s are subject to anti-discrimination rules. I am not going to list them all out here (there are formulas), but that has a lot to do with the question you are asking. There are also rules about vesting, contribution limits, loans, etc.

The basic idea with the 401k is that higher paid executives and certain classes of employees cannot contribute a certain amount more than lower paid or different classes of employees.

There are tax benefits for both the company and executives for staying inside these rules.

Supplemental executive packages, deferred comp, etc., are basically bonuses that the company gives key executives / employees as a means of tying them to the company. It is often referred to as “golden handcuffs”.

The executive plans promise a greater future benefit for sticking around then they could get even if they just maxed out their 401k’s.

However, because they are geared at those key employees only, they lose many of the tax benefits.

Often times, life insurance contracts are used as the underlying vehicle in these executive perks.

A lot of executives take advantage of both the 401k and their executive package.

Hope that helps!

Ken Clark
Certified Financial Planner

Disclaimer:
Answers provided are for general educational purposes only, and may exclude other important factors relevant to your unique situation. No reader should act on the information contained in this article without consulting Ken Clark or another financial professional directly.

Category: Retirement Plans | No Comments »

Ken Clark, CFP named a finalist by Investment News for mentoring work in south Orange County.

September 18th, 2007 by admin

Ken Clark, was named one of four finalists (out of over 500 nominees), for the Mentoring Excellence award presented by Investment News in New York City.

The award is in recognition of Ken’s work mentoring at-risk teens in south Orange County over the last decade.

Click here to see the official news release.