Protect and grow your business

Edward Jones offers an array of products and services designed to help your business thrive. From key person insurance to help protect your business and qualified retirement plans, to laddered certificates of deposit (CDs) and effective tools for cash management, your financial advisor can help determine what's appropriate for your situation. He or she will work with your attorney and tax professional to answer any questions about financial products and services you may need help to keep your business up and running.

For now, let's take a closer look at insurance for key people, laddered CDs, capital management and retirement plans.

Key person insurance

If the success of your business depends on the special skills or expertise of one or two key employees, you may want to consider purchasing key person insurance on those individuals. These workers are so important to the ongoing success of the business that losing them could potentially result in financial ruin. Think of it as a form of life insurance for your business.

To help protect against any fallout that might occur when you lose a key employee, your business could purchase a life insurance policy on that individual. If the key person passes, your company receives the benefit, which can then be used to hire a replacement or cover your expenses until a suitable replacement comes along. In certain situations, the money may be used to pay off debt and even close down the business.

Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P. and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C.

Laddered certificates of deposit (CDs)

A certificate of deposit is a federally insured savings account with a fixed rate of return and a fixed maturity date. The longer the funds are committed, the higher the interest rate. A laddered CD strategy allows your business to take advantage of varying interest rates and investment periods.

Sometimes your business generates extra cash that needs to be invested for a short period of time. By using a laddered CD strategy, you can divide the funds into equal parts and invest the money in certificates of deposit with different maturity dates. This can help eliminate some of the risk associated with interest rates and reinvestment.

It is important to consider any additional call features when building a CD ladder, such as the call date for a callable brokered CD.

You must evaluate whether a CD ladder and the securities held within it are consistent with your investment objectives, risk tolerance and financial circumstances.

Cash management

For times when your business needs to manage cash flow, Cash Management Account (CMA) may be the answer. Although a CMA operates much like a combined savings and checking account, it is a nonbank cash account that typically comes with a higher interest rate and low or no fees. In addition to generally being FDIC-insured, Cash Management Accounts may also come with check-writing capabilities, bill pay, money transfers and overdraft protection.

The higher rates are possible in large part because everything is transacted online. There's no face-to-face customer service. If that doesn't bother you, then taking advantage of the higher rates could be a boost for your business. Make sure you evaluate what a CMA offers and what fees it charges, to determine if it is a suitable alternative for your situation, before you open an account.

Retirement plans

Establishing a retirement plan for you and your employees can help you reach your personal and business goals. As an owner, you can benefit by saving for your own retirement in tax-advantaged ways. A business retirement plan can help provide employee retirement benefits, which may help you attract and retain good people.

Whether managing your business cash flow or protecting your business from the loss of key personnel, you can work with your financial advisor to help determine which products and services may be suitable for your business.

At Edward Jones, we can provide products and services you may need to help keep your business up and running. For more information, contact your Edward Jones financial advisor.