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
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.
Sarah Contino, AAMS®, CRPC®
CAM Investor Solutions - Florida