TRANSCRIPT:
Retirement plans have come a long way since American Express introduced the first private employer pension plan in the United States in 1875. Back then, employees who worked 20-plus years could retire with half their average salary, offering financial security long before Social Security or 401ks existed. Today, choosing the right retirement plan is essential to keeping your business competitive and your employees satisfied. But with so many options, it’s easy to make mistakes. The right plan can boost employee satisfaction, improve retention, and set your business up for long-term success. Or it could lead to costly mistakes, administrative headaches, and potentially missed tax savings opportunities. Hi, I’m Ken Hargreaves. I’m a certified financial planner and president of WealthGen Advisors. And here are the top three potential costly pitfalls to avoid when setting up a business retirement plan. Number one is choosing the wrong plan. Choosing a plan that doesn’t fit your business’s size and administrative capacity can lead to frustration, inefficiency, and could cost you money. Number two is not offering a matching contribution. Employees value it. It can make your benefits package more attractive, plus employer contributions may be tax deductible helping your business save money. And number three overpaying on fees. Hidden fees can erode potential returns over time. A well-chosen retirement plan can be a key driver of your business’s success, but picking the right one isn’t easy. A certified financial planner with an emphasis on workplace retirement plans can help you pick the right one for your company that will benefit you, your company, and your employees. Want to learn more? Click the link below to read one of our articles that covers and compares retirement plans.
