We wish everyone a safe and happy holiday season. We are so grateful to have wonderful friends and clients in our lives. We look forward to a great 2012 and are kicking it off with a webinar about investing and the current financial market environment. Click the link below to sign up for it.
https://www2.gotomeeting.com/register/131938058
Tuesday, December 20, 2011
Tuesday, December 6, 2011
Common Myths of Company Retirement Plans
According to the U.S. Small Business Administration, more than 40 million American employees have no retirement plan option at their place of work. Most of these workers are employed by small businesses, or companies with less than 100 employees.
Through our discussions with many small business owners, we have found that there are a few specific reasons that retirement plans are not offered. This blog post is designed to address a few of these.
The first myth we hear is that it’s too expensive to set up and maintain. Much of the advice from professionals is built around this idea that retirement plans are too expensive to set up and maintain. However, we have found the opposite to be true. Competition is furious in the retirement plan arena, and this has driven costs of administering retirement plans down significantly. Also, many service providers are waiving set up fees to gain new retirement plan clients.
The second myth we hear is that it’s time consuming and not for me. This may not be the case any more. Technology has decreased the time required to maintain retirement plans. Also, when business owners see the advantages of having the retirement plan (personal savings, attracting and retaining good employees), they begin to understand the value it provides the business.
Finally, the last myth we hear is that you have to settle for poor advice and high fees. This should never be the case in today's marketplace. Once again, competition and transparency have resulted in a new standard of lower fees and high quality advice for today's investment advisors. The result of this are numerous low fee options based on sound, quality advice.
We feel that, in this business environment, this should be a significant part of a business owner's strategy for the future. Please contact us if you have any questions.
Benjamin D. Coakley, CFP
Through our discussions with many small business owners, we have found that there are a few specific reasons that retirement plans are not offered. This blog post is designed to address a few of these.
The first myth we hear is that it’s too expensive to set up and maintain. Much of the advice from professionals is built around this idea that retirement plans are too expensive to set up and maintain. However, we have found the opposite to be true. Competition is furious in the retirement plan arena, and this has driven costs of administering retirement plans down significantly. Also, many service providers are waiving set up fees to gain new retirement plan clients.
The second myth we hear is that it’s time consuming and not for me. This may not be the case any more. Technology has decreased the time required to maintain retirement plans. Also, when business owners see the advantages of having the retirement plan (personal savings, attracting and retaining good employees), they begin to understand the value it provides the business.
Finally, the last myth we hear is that you have to settle for poor advice and high fees. This should never be the case in today's marketplace. Once again, competition and transparency have resulted in a new standard of lower fees and high quality advice for today's investment advisors. The result of this are numerous low fee options based on sound, quality advice.
We feel that, in this business environment, this should be a significant part of a business owner's strategy for the future. Please contact us if you have any questions.
Benjamin D. Coakley, CFP
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