Retirement plan consultants in Milwaukee, WI. Setting up a retirement plan like a 401(k) is a smart move for Milwaukee, WI companies and business owners looking for a way to stand out. These plans are a key factor in attracting and retaining top talent, providing employees with a sense of security, and fostering a committed workforce. But, for businesses who haven't set up a retirement plan before, or for companies who'd like to make changes to their current plan, the wealth of plan options, regulatory compliance, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Milwaukee, WI 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 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 Milwaukee, WI to help create a 401(k) or other plan, reach out to us via 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 Milwaukee, WI Business
To understand what a 401(k) or other retirement plan could mean for your Milwaukee, WI business, it's essential to look at how much it means to your employees:
- 2 in 3 U.S. retirees say the country is in a retirement crisis; 2 in 5 worry they will outlive their retirement savings (Source)
- 45% of retirees say their income wasn't sufficient to save for retirement; over half blame their employer for not providing adequate resources to help them save (Source)
- In a recent study, 62% of respondents said their largest 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 essential reason to join a company; about four in ten ranked it in their three top most desired benefits (Source)
- 77% of employees with access to a plan choose to participate (Source)
- Nearly eight in ten of younger workers that are 401(k) plan participants are looking for personalized investment advice for their plan (Source)
- Three-quarters 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 our golden years is a significant concern for most Americans, and Milwaukee, WI businesses that offer retirement plans afford themselves a significant edge when it comes to securing and keeping valuable employees. Moreover, there are a bevy of benefits for both employers and employees that retirement plans offer:
Business Benefits
- Matching contributions are tax-deductible
- Tax-free earnings on assets
- Variety of plan options and flexibility to adapt a plan to your business
- Tax credits and other benefits from the SECURE ACT 2.0, help reduce initial costs
- Higher employee retention lowers the annual cost of training new employees
Employee Benefits
- Employees can lower 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
- Improved financial security in retirement
Types of Retirement Plans Available for Milwaukee, WI Businesses
If you're considering setting up a retirement plan for your Milwaukee, WI 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 allow for a wide range of investments including stocks, bonds, mutual funds, and ETFs, and allow employees to save and invest a portion of their paycheck before taxes are taken out. Employers have the option to match contributions. Safe Harbor 401(k) plans are largely 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 — 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 operate based on employees contributing a specific amount or percentage of their income, defined benefit plans promise a predetermined monthly withdrawal in retirement. These plans are primarily employer-funded, and the company takes on the investment risk.
- Cash Balance Plans — Cash balance plans are one form of defined benefit plan that accounts for each participant's balance in a hypothetical account, which increases every year 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 flexibility of contribution plans.
- Simplified Employee Pension (SEP) IRAs — SEP plans offer an uncomplicated way for small businesses to offer retirement plans. Employers make contributions directly to an IRA established for each employee. SEPs are straightforward to manage, with minimal red tape, and contributions are tax-deductible for the business. They're particularly well-suited for businesses with variable profits, 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 easier to set up and maintain than 401(k)s but allow employees to contribute a part of their income to the plan, which employers are required to match up to a certain percentage. SIMPLE IRAs are an excellent option for small businesses looking to offer a more traditional retirement plan without the red tape associated with larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that enable employers to make optional contributions to their employees' retirement funds. Contributions are usually made from company stock, giving employees an incentive to contribute to the company's success. These plans are adaptable in many ways, offering flexibility in how contributions are calculated and distributed among employees.
- Employee Stock Ownership Plans (ESOPs) — ESOPs provide employees with company stock, providing a stake of ownership in the business. ESOPs are not only a retirement benefit but also align employees' interests with the company's performance, potentially boosting 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 take the reins of the business.
How Can Correct Capital Help My Business's Retirement Plan?
Our Milwaukee, WI retirement plan consultants currently manage over 30 plans in companies of all sizes, and oversee over $230 million in total plan assets across the U.S. 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 different plan options and selecting the most fitting retirement plan for your specific company, taking into account factors such as number of employees, financial goals, employee demographics, and tax advantages. The goal is to decide on a plan that offers the best benefits to your employees while being economical for your business.
- Establishing the plan — Multiple steps are required to make the retirement plan legitimate. 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 Milwaukee, WI retirement plan consultants can handle and/or assist with each of these steps.
- Plan changes — Maybe you're unsatisfied 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 accommodate 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 more closely align with your needs.
- Investment advice — As a Registered Investment Advisor (RIA), we possess 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 analyzing the performance of different investment funds, evaluating your employees' risk tolerance, and ensuring a diverse range of options to meet 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 adoption agreements for the plan, plan summaries, and annual notices to participants.
- Ongoing participant education — Informing participants is key to ensuring that your employees grasp the benefits of participating in the retirement plan and how to make educated investment choices. Correct Capital's retirement plan consultants carry out quarterly webinars to plan participants and offer one-on-one coaching for topics such as retirement planning, investment risk, and how to enhance their retirement savings.
- Help with regulations and audits — The IRS, SEC, ERISA, and other laws and institutions establish rigid frameworks for how companies establish and maintain their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can make sure your Milwaukee, WI 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 Milwaukee, WI include:
Milwaukee, WI Retirement Plan Consultants | Correct Capital
As you contemplate the future of your business and the well-being of your employees, 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 lead your Milwaukee, WI business and staff from where you are to where you want to go. To initiate developing a plan that fits with your unique company and goals, talk to a retirement plan consultant in Milwaukee, WI today at 877-930-4015 or contact us online.
