Retirement plan consultants in Hayward, CA. Adopting a retirement plan such as 401(k) is a wise move for Hayward, CA companies and business owners looking for a competitive advantage. Retirement plans are a vital component in attracting and retaining top talent, providing employees with a sense of security, and fostering a loyal workforce. But, for businesses that have not set up a retirement plan before, or for companies who'd like to make changes to their current plan, the variety of plans available, regulatory compliance, and tax considerations can be overwhelming.
Correct Capital Wealth Management is an independent Hayward, CA financial advisory firm that specializes in helping companies set up and maintain unique retirement plans for your unique business and workforce. We love exploring the unique story behind every company we work with and getting to know the entrepreneurial spirit that drives their leaders. As fiduciary advisors, we have a legal and ethical obligation to act only in your best interest. If you're in search of a retirement plan consultant in Hayward, CA 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 Hayward, CA Business?
To understand what a 401(k) or other retirement plan could mean for your Hayward, CA business, it's important to examine how much it means to your employees:
- Two-thirds of U.S. retirees say the country is in a retirement crisis; 2 in 5 think they might live longer than their savings last (Source)
- 45% of retirees say their income wasn't high enough to save for retirement; 55% blame their employer for not doing enough to help them save (Source)
- In one survey, 62% of respondents said their main source of income in retirement will be their 401(k) (Source)
- 60% of employees cited their employers' retirement plan as a reason they remain; nearly half said it's an essential reason to join a company; about four in ten ranked it in their three top most desired benefits (Source)
- More than three-quarters of employees with access to a plan opt-in (Source)
- Nearly eight in ten of Gen Z and Millennial 401(k) plan participants are interested in customized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make the right decisions with their finances with the help of a financial advisor (Source)
Saving for retirement is a huge concern for most Americans, and Hayward, CA businesses that offer retirement plans provide themselves a significant edge when it comes to attracting and retaining talent. Additionally, there are a multitude of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Employer contributions are tax-deductible
- Earnings on plan assets are tax-free
- A range of plan choices and the flexibility to adapt a plan to your business
- Tax credits and other benefits from the SECURE ACT 2.0, assist in reducing initial costs
- Higher employee retention lowers the annual cost of turnover
Employee Benefits
- Employee contributions can reduce their taxable income
- Contributions and earnings are not taxed until withdrawal
- Contributions are easy to make through payroll deductions
- Even small, regular contributions can accumulate into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Enhanced financial wellbeing in retirement
Retirement Plan Options Available for Hayward, CA Businesses
If you're considering sponsoring a 401(k) or other plan for your Hayward, CA business, there are a variety of plan options our retirement plan consultants can speak to you about:
- 401(k) Plans — The cornerstone of American retirement plans, 401(k)s allow for diverse investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a percentage of their income before taxes are taken out. Employers have the option to match contributions. Safe Harbor 401(k) plans are essentially the same, but employer contributions are required to be fully vested when made. 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 tailored for employees of non-profit entities.
- Defined Benefit (Pension) Plans — While 401(k)s and other defined contribution plans operate based on employees contributing a specific amount or percentage of their earnings, defined benefit plans promise a specific monthly withdrawal once an employee reaches retirement. These plans are primarily employer-funded, and the company bears the investment risk.
- Cash Balance Plans — Cash balance plans are a type of defined benefit plan that accounts for each participant's balance in a hypothetical account, which increases annually through employer contributions and an interest credit rate. This plan offers consistent returns like a traditional pension but with individual accounts similar to a 401(k). It's an attractive option for businesses seeking a middle ground between the security of pension plans and the adaptability of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer a straightforward way for small businesses to provide retirement benefits. Employers make contributions directly to an IRA set up for each employee. SEPs are straightforward to manage, with minimal paperwork, and contributions are tax-deductible for the business. They're particularly 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 percentage of their paycheck to the plan, which employers are required to match up to a certain percentage. SIMPLE IRAs are a great choice for small businesses seeking to provide a more traditional retirement plan without the red tape associated with larger plans.
- Profit-Sharing Plans — Profit-sharing plans are flexible retirement solutions that enable employers to make optional contributions to their employees' retirement funds. Contributions are typically 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 calculated and distributed among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs give employees with company stock, offering them an ownership interest 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 complement 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 Hayward, CA Retirement Plan Consultants Do for My Business?
Our Hayward, CA retirement plan consultants manage over 30 plans in both small and large companies, and oversee over $230 million in total plan assets across the United States. Our expertise and experience allows us to offer a range of services that encompass both the initial set up and ongoing support:
- Plan selection — We'll assist in evaluating and selecting the most fitting retirement plan for your unique company, bearing in mind factors such as number of employees, financial goals, employee demographics, and tax advantages. The goal is to select a plan that provides the best benefits to your employees while being economical for your business.
- Establishing the plan — Multiple steps are required to make the retirement plan legal. These include adopting a written plan, arranging a trust for trust assets, notifying eligible employees about terms and conditions, and setting up a record-keeping system. Our Hayward, CA retirement plan consultants can handle and/or assist with all of these requirements.
- Plan changes — Maybe 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 accommodate business growth, changes in workforce, or shifts in financial goals. This includes introducing new options, modifying contribution limits, or transitioning to a different type of plan to better meet your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess a diverse array of analytical tools, resources, and experience to assist with the selection of investment options that should be made available within the plan. This includes examining the performance of different investment funds, assessing your employees' risk tolerance, and ensuring a diverse range of options to accommodate the varying investment preferences and retirement goals of your employees.
- Plan documentation — Retirement plan consultants help in drafting and maintaining all essential plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes plan adoption agreements, summary plan descriptions, and annual notices to participants.
- Plan participant education — Informing participants is vital 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 offer quarterly webinars to plan participants and offer personalized 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 set rigid frameworks for how companies establish and maintain their retirement plans. Most 401(k) plans are also subject to annual audits. Retirement plan consultants can make sure your Hayward, CA business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant enables us to assume much of the fiduciary duty related to the plan off your shoulders.
Other services we offer in Hayward, CA include:
- 401(k) Audit
- High-Net-Worth Wealth Management
- Retirement Planner
- Financial Planning
- Fiduciary Financial Advisor
- Self-Employed Retirement Plans
Hayward, CA Retirement Plan Consultants | Correct Capital
As you contemplate the future prospects of your company and the welfare of your workforce, offering a retirement plan should be at the forefront. With our complete range of offerings and dedication to working exclusively in your optimal interest, we'll help you guide your Hayward, CA business and staff from where you are to where you want to go. To start crafting a plan that matches with your individual business and goals, speak to a retirement plan consultant in Hayward, CA today at 877-930-4015 or contact us online.
