Retirement plan consultants in Fort Lauderdale, FL. Establishing a retirement plan like a 401(k) is a strategic move for Fort Lauderdale, FL businesses and business owners looking for a way to stand out. These plans are a key factor in retaining and attracting top talent, providing employees with a feeling of stability, and fostering a productive workforce. But, for businesses that have not established a retirement plan before, or for companies looking for a better option, the variety of plans available, regulatory compliance, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Fort Lauderdale, FL financial consultancy firm that specializes in assisting companies establish and manage customized retirement plans, tailored to the needs of both your business and employees. We enjoy exploring the unique story behind each business we work with and getting to know what makes them tick. As fiduciary advisors, our sole aim is to act in your best interest. If you're looking for a retirement plan consultant in Fort Lauderdale, FL to help set up a 401(k) or other plan, reach out to us via 877-930-4015, contact us online, or schedule an appointment with one of our financial advisors today.
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Correct Capital Wealth Management's office is physically located in St. Louis, MO, but we serve clients throughout the United States in both personal financial planning and corporate retirement plans.
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Why Establish a Retirement Plan for Your Fort Lauderdale, FL Business?
To understand what a 401(k) or other retirement plan could mean for your Fort Lauderdale, FL company, it's crucial to examine what a retirement plan means for your employees:
- 67% of U.S. retirees say there's a retirement crisis in the country; four out of ten think they might outlive their retirement savings (Source)
- Almost half of retirees say their income wasn't sufficient to save for retirement; 55% blame their employer for not doing enough to help them save (Source)
- In a recent study, over half of respondents said their largest source of income in retirement will be their 401(k) (Source)
- Three-fifths of employees cited their employers' retirement plan as a reason they remain; nearly half said it's an important reason to join a company; almost half ranked it in their top three most desired benefits (Source)
- More than three-quarters of employees with access to a plan participate (Source)
- 78% of Gen Z and Millennial 401(k) plan participants are keen on customized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make sound financial decisions with the help of a financial advisor (Source)
Saving for retirement is a significant concern for most Americans, and Fort Lauderdale, FL businesses that offer retirement plans give themselves a significant edge when it comes to attracting and retaining talent. Beyond that, there are a host of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Employer contributions are tax-deductible
- Earnings on plan assets are tax-free
- Variety of plan options and flexibility to adapt a plan to your business
- Tax credits , among other advantages from the SECURE ACT 2.0, assist in reducing start up costs
- Higher retention rates lower the annual cost of turnover
Employee Benefits
- Employees can lower their taxable income
- Contributions and earnings are not taxed until withdrawal
- Contributions are easy to make through payroll deductions
- Small, regular contributions can grow into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Improved financial security in retirement
Types of Retirement Plans Available for Fort Lauderdale, FL Businesses
If you're looking into establishing a 401(k) or other plan for your Fort Lauderdale, FL business, there are a multitude of plan options that may be right for your business:
- 401(k) Plans — The bedrock of American retirement plans, 401(k)s enable for a wide range of investments across stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a portion of their paycheck before taxes are taken out. Employers can choose to match contributions. Safe Harbor 401(k) plans are essentially the same, but employer contributions must be fully vested immediately. In exchange, safe harbor 401(k)s are not subject to annual nondiscrimination tests.
- 403(b) Plans — Much like 401(k)s, 403(b)s are specifically designed for employees of non-profit entities.
- Defined Benefit (Pension) Plans — While 401(k)s and other defined contribution plans are based on employees contributing a specific amount or percentage of their paycheck, defined benefit plans promise a predetermined monthly withdrawal once an employee reaches retirement. These plans are mostly employer-funded, and the company bears the investment risk.
- Cash Balance Plans — Cash balance plans are one form of defined benefit plan that tracks each participant's balance in a hypothetical account, which increases every year through employer contributions and an annual interest rate. This plan offers consistent returns like a traditional pension but with individual accounts similar to a 401(k). It's an appealing option for businesses looking for a middle ground between the security of pension plans and the adaptability of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer an uncomplicated way for small businesses to sponsor retirement plans. Employers make contributions directly to an IRA set up for each employee. SEPs are straightforward to manage, with minimal red tape, and contributions are tax-deductible for the business. They're especially well-suited for businesses with variable profits, as the contribution amounts can be adjusted annually.
- Savings Incentive Match Plan for Employees (SIMPLE) IRA — SIMPLE IRAs are tailored to small businesses with 100 or fewer employees. These plans are easier to set up and maintain than 401(k)s but allow employees to contribute a part of their earnings to the plan, which employers are required to match up to a certain percentage. SIMPLE IRAs are a great choice for small businesses looking to offer a more traditional retirement plan without the complexities of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that allow employers to make optional contributions to their employees' retirement funds. Contributions are often made from company stock, giving employees a direct stake in the company's bottom line. These plans are adaptable in many ways, offering flexibility in how contributions are distributed and calculated among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs offer employees with company stock, offering them a stake of ownership in the business. ESOPs are not only a retirement benefit but also align financial goals of employees with those of the company's performance, which can boost productivity and job satisfaction. ESOPs can also align with a company's succession planning as ownership shares can be passed to high performers who will eventually lead of the business.
What Can Correct Capital's Fort Lauderdale, FL Retirement Plan Consultants Do for My Business?
Our Fort Lauderdale, FL retirement plan consultants are currently managing over 30 plans in companies of all sizes, and oversee over $230 million in total plan assets across the U.S. Our experience and expertise enables us to offer a range of services that encompass both the initial set up and ongoing support:
- Plan selection — We'll aid in evaluating and selecting the most appropriate retirement plan for your specific company, bearing in mind factors such as company size, financial goals, employee demographics, and tax considerations. The goal is to choose a plan that provides the best benefits to your employees while being efficient for your business.
- Establishing the plan — Multiple steps are required to formally put the retirement plan in place. These include adopting a written plan, arranging a trust for trust assets, notifying eligible employees about the terms of the plan, and setting up a record-keeping system. Our Fort Lauderdale, FL retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Possibly you dislike your current plan, or your business has evolved and you need a retirement plan consultant that can help your retirement plan adapt as you grow. Consultants can guide you through modifying your plan to adapt to business growth, changes in workforce, or shifts in financial goals. This includes adding new features, adjusting contribution limits, or transitioning to a different type of plan to suit your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we have access to a wide range of analytical tools, resources, and experience to help with the selection of investment options that ought to be made available within the plan. This includes examining the performance of different investment funds, evaluating your employees' risk tolerance, and providing a diverse range of options to suit the varying investment preferences and retirement goals of your employees.
- Plan documentation — Retirement plan consultants help in drafting and maintaining all necessary plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes adoption agreements for the plan, summary plan descriptions, and annual notices to participants.
- Plan participant education — Education is paramount to ensuring that your employees comprehend the benefits of participating in the retirement plan and how to make informed investment choices. Correct Capital's retirement plan consultants engage in quarterly webinars to plan participants and offer one-on-one coaching for topics such as retirement planning, investment risk, and how to maximize their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions establish rigid guidelines for how companies need to stay legally compliant with their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can make sure your Fort Lauderdale, FL business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant helps remove much of the fiduciary duty related to the plan off your shoulders.
Other services we offer in Fort Lauderdale, FL include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Fiduciary Financial Advisor
- Self-Employed Retirement Plans
Fort Lauderdale, FL Retirement Plan Consultants | Correct Capital
As you think about the future of your company and the well-being of your workforce, offering a retirement plan should be a top priority. With our comprehensive suite of offerings and commitment to acting exclusively in your best interest, we'll help you guide your Fort Lauderdale, FL business and staff from where you are to where you want to go. To initiate developing a plan that aligns with your individual business and goals, speak to a retirement plan consultant in Fort Lauderdale, FL today at 877-930-4015 or contact us online.
