Literature on the 5 Way Approach

[scottstreet]

The "5 way approach" that is credited to Burt Meisel has been occasionally mentioned on this and other forums. Does anyone know of any literature other than a simple list of the 5 ways that fleshes out this approach? I can't seem to find any and I'd be surprised if something doesn't exist. TIA, Jim

 

[DHK]

The 5 ways is a discussion, not necessarily "literature". (I doubt you'll find any company talking about Voluntary Sale or Bankruptcy directly in their literature.) Most companies will put out literature regarding death, disabilty & retirement.

Companies that do the proper planning for death, disability & retirement may find that their company can appraise for a higher value than without such planning - particularly if they leave insurance as a company asset as part of the valuation for purchase.

Companies will also be able to protect their company against risks that may cause bankruptcy with inadequate cash flow due to other risks to key employees (such as owners) as well as asset protection products.

 

[xrac]

The "5 way approach" that is credited to Burt Meisel has been occasionally mentioned on this and other forums. Does anyone know of any literature other than a simple list of the 5 ways that fleshes out this approach? I can't seem to find any and I'd be surprised if something doesn't exist. TIA, Jim

This is something that I have worked on using the five way approach although it is not completed:

FIVE WAYS

"Friend you are working today. One day you not be working for one of the following five reasons:

1. Death
2. Disability
3. Retirement
4. Voluntary Resignation
5. Involuntary Termination

My job is to help you build a moat around your castle. Odds are what you think is your castle is really a thatch and straw hut, and the big bad wolf is coming down the lane. My job is to get you prepared for battle.What I do is make sure that no matter which way you stop working, you have done all you can to be prepared and to end up with the most money in your pocket."
"This is what we do for our clients. We provide an economic road map that provides some focus, direction and a whole lot of security.

1. Death
If you get smacked by a Mack truck on the way home from work today, and do not survive, what happens to your family? " If you die today, who is going to need money? How much will they need? How much income do you need each month to keep your family together until the kids don't need to have you around as much?' How did you come up with that figure?


2. Disability
If you get sick or hurt, and cannot work for the next year, what happens to your family while you're in the hospital recovering for the next 12 months? How will they get paid? Where will that money come from?

3. Retirement Do you want to retire someday? When? Do you know how much you will need to retire with the lifestyle you want? How did you come up with that figure? How much are you saving now?
Will you be happy, if what you save over the next five years is the same as what you've saved over the last five years? Is it funded? How is it funded? How often do you review the plan? When was the last time you reviewed the funding?


4. Voluntary Resignation


5. Layoff or Termination
And by the way, I can also give you an attractive discount of you want to lease this economic package instead of buying it, and you'll always have the option to buy."

 

[Norwayguy]

Thats got to be the best 5 ways in written form I've seen

 

[DHK]

I finally edited it. I did a copy/paste from my word document.

 

[Norwayguy]

I put it in word and edited it so I have it locally...but when I tried to quote it, it did the same thing and I got too lazy.

 

[Full Throttle]

My version of the 5 ways approach is fairly simple:

The work I do is based on one simple fact: you are eventually going to exit your business. And you can only do it 1 of 5 ways: say all 5 quickly.

Flip to page with a dollar bill taped to the top and the problems I help fund.

Knowing your going to exit your business, there are some problems that come with a price tag and the longer they are ignored, the more expensive they become.

(Quickly outline main problems solved)

Mr Biz Owner, what would you say is your biggest financial concern at this point?

(Listen)

Attempt to set fact finding meeting.

 

[DHK]

Here's another one that I based off of the Business LUTCF textbook:

TO: The Business Owner​

Subject: How would your family, employees, suppliers and creditors answer these questions, if you had died last night?

· Who is running the business?
· To whom do the employees report?
· How would your surviving spouse get income?
· Who will pay the creditors?
· Does the bank have your personal guaranty on loans?
· Are there co-owner(s)?
· Who will the co-owners want regarding ownership and control of the business?
· Should your shares be sold?
· Will your co-owner(s) buy?
· At what price?
· Where will they get the cash?
· How much will the IRS want of the value of your business interest?

Is this scenario what you want?

Here's one for Business Protection Planning:

To: The Business Owner

Subject: What impact would the death or disability of an owner or key employee have on the continued success of your business?

Consider:
Who would run the business?
Can they assume your role in the business?
How much would you pay that person to assume your duties?Where would the money come from to pay them and you?
How would your other employees feel about the strength and future of the business?
How would key accounts respond?
How would suppliers & lenders feel about the stability of your business?
What if it’s a permanent change in your health status? What then?
Is that what you want?

Neither of these are as emotionally strong as the "Company Will", but you can use these along with offering the appropriate VSA Life Guide to try to gather responses.
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You'll notice that none of my posts directly mention "The Five Ways" (except as a summary)... but a facet of the five ways. They are designed to be disturbing to the reader. Disturb them, and you might get a response.

When you get a response, you can go into the work you do with business owners and frame it around the Five Ways.
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Here's something else you can consider if you want to waste your money:

http://businesskillers.com/

Of course, you can also review the realLIFEstories as well.

realLIFEstories - Life Insurance for Businesses - LIFE Foundation

 

[xrac]

Xrac, I have to admit... and I'm a wannabe like you are... but that's terrible......

Thanks for the compliment! I didn't say it was a finished product it is still in process but it was information.

 

[DHK]

Well, it's not like I "ripped it to pieces" without providing anything else!