Retirement plan consultants in Lubbock, TX. Setting up a retirement plan like a 401(k) is a wise move for Lubbock, TX businesses and business owners looking for a way to stand out. These plans are a crucial element in attracting and retaining top talent, providing employees with a sense of security, and fostering a productive workforce. But, for businesses that have not established a retirement plan before, or for companies who'd like to make changes to their current plan, the wealth of plan options, legal requirements, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Lubbock, TX financial advisory firm that specializes in assisting companies establish and maintain customized retirement plans, tailored to the needs of both your business and workforce. We enjoy exploring the unique story behind each business we work with and getting to know the entrepreneurial spirit that guides their leaders. As fiduciary advisors, our only goal is to act in your best interest. If you're in search of a retirement plan consultant in Lubbock, TX to help set up a 401(k) or other plan, give us a call at 877-930-4015, contact us online, or make an appointment with one of our financial advisors today.
Benefits of Starting a Retirement Plan for Your Lubbock, TX Business
To understand what a 401(k) or other retirement plan could mean for your Lubbock, TX business, it's essential to consider how much it means to your employees:
- 2 in 3 U.S. retirees say the country is in a retirement crisis; 40% worry they will live longer than their savings last (Source)
- Nearly half of retirees say their income wasn't sufficient to save for retirement; over half blame their employer for not doing enough to help them save (Source)
- In a recent study, over half 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; 47% said it's an key reason to join a company; 44% ranked it in their three top most desired benefits (Source)
- Nearly four out of five employees with access to a plan opt-in (Source)
- 78% of Millennial and Gen Z 401(k) plan participants are keen on personalized investment advice for their plan (Source)
- 77% of plan participants are "extremely confident" in their ability to make the right financial decisions with the help of a financial advisor (Source)
Saving for retirement is a significant concern for most Americans, and Lubbock, TX businesses that offer retirement plans give themselves a significant edge when it comes to attracting and retaining talent. Additionally, there are a bevy of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Tax deductions for matching contributions
- Tax-free earnings on assets
- A range of plan choices and the 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
- Employee contributions can reduce 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
- Participant assets can be rolled over if they change employers
- Enhanced financial wellbeing in retirement
Retirement Plan Options Available for Lubbock, TX Businesses
If you're considering establishing a retirement plan for your Lubbock, TX business, there are a range of plan options that may be right for your business:
- 401(k) Plans — The cornerstone of American retirement plans, 401(k)s enable for diverse investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a percentage 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 are required to be fully vested immediately. In exchange, safe harbor 401(k)s are not subject to annual nondiscrimination tests.
- 403(b) Plans — Comparable to 401(k)s, 403(b)s are specifically designed for employees of educational institutions and non-profits.
- Defined Benefit (Pension) Plans — While 401(k)s and other defined contribution plans are based on employees contributing a certain amount or percentage of their earnings, defined benefit plans promise a guaranteed monthly withdrawal in retirement. These plans are largely employer-funded, and the company takes on 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 predictable benefits like a traditional pension but with individual accounts similar to a defined contribution plan. It's an attractive option for businesses looking for a middle ground between the certainty of pensions and the flexibility 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 easy to administer, with minimal paperwork, and contributions are deductible for the business. They're especially well-suited for businesses with fluctuating income, as the contribution amounts can be modified annually.
- Savings Incentive Match Plan for Employees (SIMPLE) IRA — SIMPLE IRAs are tailored to small businesses with 100 or fewer employees. These plans are simpler to manage than 401(k)s but allow employees to contribute a percentage of their salary 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 hassle of 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 can be structured in many ways, offering flexibility in how contributions are distributed and calculated among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs give employees with company stock, providing an ownership interest in the business. ESOPs are not only a retirement benefit but also align employees' interests with 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.
How Can Correct Capital Help My Business's Retirement Plan?
Our Lubbock, TX retirement plan consultants manage over 30 plans in companies of all sizes, and oversee over $230 million in total plan assets across the country. Our experience and expertise enables us to offer a range of services that include both the initial set up and ongoing support:
- Plan selection — We'll assist in evaluating and selecting the most fitting retirement plan for your business, bearing in mind factors such as company size, financial goals, employee demographics, and tax considerations. The goal is to decide on a plan that provides the best benefits to your employees while also helping out your bottom line.
- 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 creating a record-keeping system. Our Lubbock, TX retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Perhaps 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 help you with modifying your plan to adapt to business growth, changes in workforce, or shifts in financial goals. This includes adding new features, 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 wide 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, evaluating your employees' risk tolerance, and ensuring a diverse range of options to suit the different needs of different employees.
- Plan documentation — Retirement plan consultants assist in drafting and maintaining all required plan documentation, ensuring compliance with IRS and Department of Labor regulations. This includes plan adoption agreements, plan summaries, and annual notices to participants.
- Plan participant education — Education is paramount to ensuring that your employees understand the benefits of participating in the retirement plan and how to make educated 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 increase their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions set rigid guidelines for how companies establish and maintain their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can help ensure your Lubbock, TX business stays compliant. Furthermore, hiring Correct Capital as your retirement plan consultant enables us to assume much of the fiduciary duty related to the plan from your responsibilities.
Other services we offer in Lubbock, TX include:
Lubbock, TX Retirement Plan Consultants | Correct Capital
As you consider the future of your company and the welfare of your employees, providing a retirement plan should be at the forefront. With our complete range of offerings and dedication to acting only in your optimal interest, we'll help you lead your Lubbock, TX business and employees from where you are to where you want to go. To start creating a plan that aligns with your unique business and goals, speak to a retirement plan consultant in Lubbock, TX today at 877-930-4015 or contact us online.
