| The Cons of Retirement Plans for Small Businesses | | | | getting simpler. |
| Depending on the size of your business, the biggest | | | | Continue here to learn more about which Retirement |
| drawback for offering a retirement plan is that these | | | | Plan is best for you and your business. |
| plans can be costly, time consuming and complicated. | | | | Can Help You Attract and Retain Employees: |
| As a small business owner you need to balance the | | | | Employees are more and more aware of the benefits |
| needs of your business against so many competing | | | | of retirement planning. And many of the brightest |
| priorities. There are many ways to use your time and | | | | workers know to look for retirement benefits as an |
| resources. | | | | important part of their overall compensation package. |
| However, there are many high quality alternatives to | | | | A company Retirement Plan can help you hire and |
| plans with high costs and complexities – | | | | – perhaps more importantly -- retain the best |
| especially if you have fewer than 100 employees. | | | | employees. |
| And, if you are a sole proprietor or self employed, | | | | A study published in National Small Business Week |
| there are very affordable retirement plans for you. | | | | reported that the overwhelming majority – 80 |
| The Pros of Retirement Planning for Small Businesses | | | | percent -- of small businesses who offer Retirement |
| The advantages of retirement planning for a small | | | | Plans believe that they help with employee retention. |
| business owner are both long and short term: | | | | And, 76 percent of respondents feel that a |
| Secure Your Retirement: Achieving retirement | | | | Retirement Plan helps attract new employees. |
| security is the most important long term goal of | | | | Back Up Savings Plan: In addition to enabling you and |
| retirement savings. | | | | your employees to save for retirement, money in |
| Many small business owners believe that the sale of | | | | your retirement account can act as a back up |
| or other exit strategy for their business will be | | | | savings plan. In general, retirement savings plans can |
| enough to fund retirement. In fact, only about 16 | | | | be borrowed against – up to half the value. |
| percent of businesses with less than 50 employees | | | | You pay the money and interest back to yourself |
| have 401k plans. (What percentage of businesses | | | | over time. |
| ultimately get sold?) | | | | This is a good resource to have in an emergency |
| However, it is probably not wise to bank on an exit | | | | – you can save for your retirement as well as |
| strategy to fund retirement. After all, most business | | | | for the proverbial “rainy day.” |
| owners know that every wise owner has a Plan B. | | | | Get Liquidity: Some company retirement plans -- like |
| Saving for your retirement should be an important | | | | an employee stock purchase plan – enable the |
| priority and an essential part of your overall financial | | | | company to raise funds for the business or the |
| goals. | | | | owner since the employees are buying the stock |
| Save Money on Taxes: Most people think of | | | | from the business. |
| retirement planning as a long term wealth | | | | Do You Have a Retirement Plan? Is it Adequate for |
| management solution. However, there are yearly | | | | You, Your Family, Your Business and Your |
| benefits to investing in a retirement planning solution. | | | | Employees? |
| The biggest short term benefit is tax savings. | | | | While many people think that they have adequate |
| Qualified retirement contributions are tax deductible. | | | | resources for retirement, few actually do. A recent |
| And both the biggest and smallest small businesses | | | | study found that 45 percent of all U.S. households |
| can reap the benefits. | | | | have less than $25,000 in savings excluding their |
| - A sole proprietor with modest yearly income might | | | | home), yet two-thirds of all workers expect to live |
| drop into a lower tax bracket with a Retirement Plan | | | | as comfortably in retirement as they did when they |
| contribution. | | | | worked. The reality is that the average person would |
| - While a large firm with sizable revenue – | | | | use up that $25,000 in just a few years – |
| could reap significant tax savings with the right | | | | even with their Social Security benefits. |
| benefits plan. | | | | Longer life spans, increasing medical costs, |
| Many Different Options are Available: Whether you | | | | fluctuations in financial markets and other pressures |
| work for yourself and make a modest income or | | | | are making significant retirement savings ever more |
| have lots of employees and a large budget, there is | | | | important. And, Small Business Owners are in a unique |
| probably a retirement planning product available to fit | | | | position to create a tax efficient plan tailored to their |
| your exact needs and goals. | | | | needs and goals. |
| And the really good news is that the wide variety of | | | | Connect with a Small Business Retirement Planning |
| plans and the competition between firms to earn | | | | Expert |
| your business mean that: | | | | Continue here to speak with a Small Business |
| - The types of investments available are wider | | | | Retirement Planning Professional who can help you |
| - The costs of these plans are getting cheaper | | | | find the right plan for you and your business. |
| - The complications of running the programs are | | | | |