Hi, my name is Matt Morrow. As a financial advisor, business owners often ask about retirement plans. One of their first questions is, “Isn’t it too complicated, too expensive and too time consuming to have a retirement plan for my business?”
The good news is, it doesn’t have to be. Plan costs are coming down; administration is becoming easier. Today, you can work with a single vendor for your retirement plan and have one point of contact, making administering the plan very easy.
Retirement Plans Exist for All Types of Businesses
It is a misconception that retirement plans or 401(k) plans are only for larger businesses. Powerful options exist for businesses of all sizes, whether you’re sole proprietor, tightly held partnership, or a company with 20, 50, or 100 employees there’s a retirement plan that will fit your business.
For example: say you’re a self-employed consultant. You run your own company, you have no employees, and you’re wondering, “how can I save towards retirement?” One of the most powerful retirement plans is available to a self-employed individual. It’s called the Individual 401(k) and it will allow you to save up to $50,000 a year pretax towards retirement. That’s a ton of tax savings and goes a long way towards funding your retirement.
In summary, 401(k) plans and retirement plans don’t have to be time-consuming, don’t have to be overly complicated to administer; and they certainly don’t have to be overly costly to the business owner.