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York-based McConkey Insurance & Benefits names vice president/principal

Kurt Gehman has been named vice president and principal of McConkey Insurance & Benefits, a provider of financial security and risk management solutions.

Gehman’s promotion became effective on Jan. 1.

“I’m truly blessed to be a part of such a great, hardworking team whose core mission is above all to serve others by providing our clients with the expertise and peace of mind to navigate today’s growingly complex risks,” Gehman said in a statement.

McConkey Insurance & Benefits has provided financial security for individuals and businesses since 1890 and serves clients on a national and international basis. Gehman joined McConkey in 2015 as a business insurance executive.

Having close to 20 years of experience in the insurance industry, Gehman adds extensive workers’ compensation experience. He started in the insurance industry as an underwriter and wrote several of the captive insurance programs to which McConkey serves as program administrator.

Gehman developed custom tailored workers’ compensation programs that addressed the specific needs of individual mid-large market businesses throughout the Mid-Atlantic region. Since joining McConkey, Gehman has been instrumental in serving some of the agency’s more complex clients and developing solutions that provide them with the resources and financial stability to successfully operate their organizations.

“It is a pleasure to have Kurt join the ownership team at McConkey,” McConkey Insurance & Benefits’ CEO and President Mike Harter said. “He is a key part in our ability to perpetuate the agency from within and remain locally owned and independent. Kurt has also been a key contributor in improving processes and procedures for the betterment of employees and clients.”

Gehman received his BSBA Degree from The University of Pittsburgh, majoring in Finance with a minor in Economics. He holds a Chartered Property Casualty Underwriter (CPCU) designation and is a member, and past Board of Director, for the PA Dutch Chapter of CPCU.

Gehman currently serves as a board member of the Lancaster City Fire Foundation and is an active member of the Lancaster County Fire Chiefs Association.

Four things your small business financial plan should cover

Thomas K. Williams

You have drive. You have self-reliance.

You’ve started a small business, led a business through a world of change and navigated a myriad of challenges from operational to financial.

As a small business owner and leader, it’s likely there’s some intersection between how you’re setting up a legacy and protecting your business and how you can wisely manage your personal finances, including income tax planning, risk management, retirement planning and estate planning.

Income Tax Planning

A company’s legal structure will dictate its income tax environment. Most small businesses are operating as a sole proprietorship, partnership, limited liability company (LLC), or corporation taxed as an S corporation. This means the taxable income of the company will flow through to the owner’s tax return and be taxed at the owner’s federal tax rate, which can be as high as 37 percent.

There is a beneficial provision in federal tax law that permits up to a 20% deduction in arriving at the income passed through to the owner. However – not all organizations and business owners will qualify, as other items of income, deduction or loss from non-business sources may impact that possibility. Working with an adviser who can coordinate planning between the small business entity and the owner’s overall tax situation can be valuable to help minimize cash outflow for income taxes.

Risk Management

We tend to insure risk on an individual level, including healthcare, disability, death, and home insurance. But the risks a small business owner faces are likely to mandate additional insurances.

The type of entity a small business operates within can be the first line of defense against some risks that could jeopardize the assets of the owner, such as operating as a corporation or LLC.

Other risks may require specialized insurance coverage, such as insuring against loss from business interruption, loss related to company property, and loss from employee injuries at work. A business insurance specialist is critical to help evaluate these and other risks.

Retirement Planning

Many small business owners view the entity they’ve built as their retirement plan, and consequently place much of their savings over the years back into the business as it grows. This can help sustain the business.

However, it’s also important to have some diversification as a small business owner within your retirement planning, particularly by taking steps to build liquidity outside of the company. For example, establishing a qualified retirement plan, such as a 401(k), can provide an owner with the ability to contribute far more dollars for their benefit than could be contributed by a non-business owner into an IRA account. Navigating the complexities of retirement planning as a small business owner is essential, even if you plan to work indefinitely. Working with a Certified Financial Planner professional can help guide small business owners.

Estate Planning

This year, estate and gift taxes have a very generous exemption of $11.7 million per person. This may change based on proposed legislation discussed by Congress.

While estate planning may not be driven by saving estate taxes right now, a larger issue for a small business owner may be continuity of the company if the owner should become disabled or die. Having a documented succession plan can be extremely valuable to help preserve the value of the business you’ve built. Life and/or disability insurance may also play a role in this planning, as a critical need upon an owner’s death or disability is to provide income and a source of liquidity to the owner or the owner’s family without the need for a “forced” sale of the company.

Small business owners should also be focused on having current estate planning documents, including a will and Power of Attorney, which expresses their current wishes as to how business ownership and control is transferred in a death or disability situation.

Summary

Owning a small business can be so many things: a dream come true, a grueling but rewarding experience, something to be proud of, something about which to worry. It can add some layers of complexity to financial planning as an owner, but these complexities can be navigated with a trusted team of advisers including CPAs, attorneys, and financial planners.

Thomas K. Williams is CEO, Partner, and Senior Wealth Adviser at Domani Wealth.

RKL debuts new services in growth and change management

An RKL practice leader advises a client as part of the new RKL Next service. (Photo: Submitted)

Manheim Township-based professional services and accounting firm RKL LLP introduced new services offered to help companies managed growth and change issues.

Company officials said RKL Next was designed to use the firm’s skills in operations, technology, human capital, data analytics and financial management to help its clients in manage like leadership transitions and acquisitions and other issues in uncertain business times.

“Many of our clients are increasingly feeling left behind given the rapid pace of change in our business environment,” said RKL CEO Edward W. Monborne. “Through RKL Next, we work alongside owners and management teams to uncover new ways of leveling up and advancing toward their goals.”

RKL Next was designed to take advantage of the skills and insights of its employees to help clients align their business objectives through its own talent and organization, leverage data to make better business decisions and streamline accounting practices to focus on growth. It will do this by sending teams into the field to evaluate business operations.

“RKL Next is a unique model for our region,” said Bethany Novis, RKL partner and consulting services group leader. “Instead of reaching up to the national level for this type of expertise at the expense of personalized service, small to mid-sized companies throughout the Mid-Atlantic can now tap into RKL Next for future-ready strategies delivered by a trusted local advisor.”

RKL operates six offices in Pennsylvania and has more than 450 employees. The company offers services like accounting, data analytics and risk management.

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York-based McConkey Insurance & Benefits names vice president/principal

RKL debuts new services in growth and change management