Webinar: Optimizing Your ESOP

Did you miss our webinar on ESOPs? Not to worry – you can watch it here.

What business owners & employees need to know for retirement.

Bill Lloyd, CFP®, ChFC, AIF®, CPFA Founder, Charitable Payraise, LLC®

Mary McCooe, JD ESOP Attorney, Maselan & Jones, P.C.

In this transcript, Bill Lloyd talks with Mary McCooe, who is an expert in ESOPs (Employee Stock Ownership Plans). Mary provides an overview of ESOPs, explaining that they are qualified retirement plans primarily invested in company stock. She also discusses the history of ESOPs and how they have been used as a business succession tool. Mary then walks through an example ESOP transaction, explaining the steps involved in setting up an ESOP and how shares are allocated to employees. Bill Lloyd then introduces the concept of the Charitable Payraise, which is a strategy that can be used in conjunction with ESOPs to maximize retirement cash flow. The strategy involves extracting shares from the ESOP, creating an LLC, and gifting a portion of the shares to a charity. The remaining shares are sold, and the proceeds are used to provide tax-free cash flow to the retiree. The webinar concludes with a discussion of the benefits of ESOPs for business owners and the potential advantages of the charitable pay raise strategy.