Small Business Retirement Plan

September 13, 2018 10:00 am

Like many of you, fall is one of our most favorite times of year as the kids return to school and football is back. So each year when kids return to the classroom and football players take the field, many employers and small business owners also begin weighing the options for their 401(k) plan (or other qualified retirement plan option) as they develop their 2019 budget and benefits packages.

When choosing a retirement plan as a small business owner, you should ask yourself the following questions:

Why am I establishing a retirement plan?

How much time and money do I want to invest in a retirement plan?

Is my revenue stream stable, or does it fluctuate?

Do I have employees now, or will I in the future?

Once you answer these basic questions, you can start your research. The chart below provides information on five of today’s most popular retirement plans: SEP plans, SIMPLE IRA plans, 401(k) plans, profit sharing plans, and Individual (k) plans.

RETIREMENT PLAN COMPARISON

Note:  Since many retirement plan options exist, its recommended business owners perform their own due diligence prior to making changes to existing plans or selecting new retirement plan options.

 

DON’T LEAVE YOUR RETIREMENT TO CHOICE

Establishing the right retirement plan now can help ensure that you have money to spend in retirement. But with so may retirement plans to choose from, its important to select one that will fit your business needs. As some of you evaluate the best option in the coming weeks for your staff and business, you may want to pursue a second-opinion on your current retirement plan. For existing plans, here are a couple of key steps you should perform:

Business owners can analyze the list of investment options to ensure the best solutions are made available to the plan.

Employers can review the fee disclosure from their service providers they are required to receive. This includes multiple documents requiring close attention.

If you are trying to establish a retirement plan for the first time, as with any other important business decision, you should consult with a competent tax advisor before making a selection.

We appreciate our relationship with you and we are here to help.

Best,

Sarah Contino, AAMS®, CRPC®

Wealth Advisor

CAM Investor Solutions – Florida

(844) 247-0787

sarah@caminvestor.com

 

Source:  M & A Consulting Group, LLC, doing business as CAM Investor Solutions is an SEC registered investment adviser. We provide financial planning and investment information that we believe to be useful and accurate. However, there cannot be any guarantees. There are many different interpretations of investment statistics and many different ideas about how to best use them. Nothing in this presentation should be interpreted to state or imply that past results are an indication of future performance. Tax planning and investment illustrations are provided for educational purposes and should not be considered tax advice or recommendations. Investors should seek additional advice from their financial advisor or tax professional.

 

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This post was written by Marc Jimenez, CFA, CFP®

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