Retirement plan consultants in Pembroke Pines, FA. Adopting a retirement plan like a 401(k) is a wise step for Pembroke Pines, FA companies and business owners looking for a competitive advantage. These plans are a vital component in attracting and retaining top talent, providing employees with a sense of security, and fostering a committed workforce. But, for businesses who haven't established a retirement plan before, or for companies who'd like to make changes to their current plan, the variety of plans available, legal requirements, and tax considerations can be challenging.
Correct Capital Wealth Management is an independent Pembroke Pines, FA financial consultancy firm that specializes in assisting companies establish 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 motivates their leaders. As fiduciary advisors, our only goal is to act in your best interest. If you're looking for a retirement plan consultant in Pembroke Pines, FA to help create 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.
Why Establish a Retirement Plan for Your Pembroke Pines, FA Business?
To understand what a 401(k) or other retirement plan could mean for your Pembroke Pines, FA business, it's essential to look at what a retirement plan means for your employees:
- Two-thirds of U.S. retirees say the country is in a retirement crisis; 40% think they might live longer than their savings last (Source)
- Nearly half 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, nearly two-thirds of respondents said their primary 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 most desired most desired benefits (Source)
- Nearly four out of five employees with access to a plan participate (Source)
- 78% of Gen Z and Millennial 401(k) plan participants are keen on personalized investment advice for their plan (Source)
- Three-quarters 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 huge concern for most Americans, and Pembroke Pines, FA businesses that sponsor retirement plans provide themselves a competitive advantage when it comes to attracting and retaining talent. Beyond that, there are a host of benefits for both employers and employees when it comes to offering retirement plans:
Business Benefits
- Tax deductions for matching contributions
- 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, 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
- Small, regular contributions can grow into significant retirement savings
- Assets can be rolled over by participants if they change employers
- Enhanced financial wellbeing in retirement
Types of Retirement Plans Available for Pembroke Pines, FA Businesses
If you're considering adopting a 401(k) or other plan for your Pembroke Pines, FA business, there are a variety of plan options that may be right for your business:
- 401(k) Plans — The foundation 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 portion of their income 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 — Similar to 401(k)s, 403(b)s are tailored for employees of tax-exempt organizations.
- 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 specific monthly withdrawal once an employee reaches retirement. These plans are mostly employer-funded, and the company assumes 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 personalized accounts similar to a defined contribution plan. It's an appealing 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 established for each employee. SEPs are straightforward to manage, with no significant paperwork, and contributions are 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 simpler to manage than 401(k)s but allow employees to contribute a part 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 complexities of larger plans.
- Profit-Sharing Plans — Profit-sharing plans are versatile retirement solutions that allow employers to make discretionary contributions to their employees' retirement funds. Contributions are usually made from company stock, giving employees a direct stake in 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 offer 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, 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.
What Can Correct Capital's Pembroke Pines, FA Retirement Plan Consultants Do for My Business?
Our Pembroke Pines, FA retirement plan consultants currently manage over 30 plans in both small and large companies, and represent over $230 million in total plan assets across the country. Our expertise and experience enables us to offer a range of services that include both the initial set up and ongoing support:
- Plan selection — We'll help with evaluating different plan options 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 select a plan that offers the best benefits to your employees while also helping out your bottom line.
- Establishing the plan — Several steps are required to make the retirement plan legal. These include creating a formal written agreement, arranging a trust for trust assets, notifying eligible employees about the terms of the plan, and establishing a record-keeping system. Our Pembroke Pines, FA retirement plan consultants can carry out and/or assist with each of these steps.
- Plan changes — Perhaps you're unsatisfied your current plan, or your business has evolved and you need a retirement plan consultant that can help your retirement plan evolve with you. Consultants can help you with modifying your plan to adapt to business growth, changes in workforce, or shifts in financial goals. This includes introducing new options, adjusting 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 diverse array of analytical tools, resources, and experience to aid in the selection of investment options that should be made available within the plan. This includes analyzing the performance of different investment funds, evaluating your employees' risk tolerance, and guaranteeing 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 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.
- Plan participant education — Education is key to ensuring that your employees understand 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 personalized 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 set rigid frameworks for how companies establish and maintain their retirement plans. Most retirement plans are also subject to annual audits. Retirement plan consultants can assist in ensuring your Pembroke Pines, FA business stays compliant. Moreover, hiring Correct Capital as your retirement plan consultant allows us to take much of the fiduciary duty related to the plan off your shoulders.
Other services we offer in Pembroke Pines, FA include:
Pembroke Pines, FA Retirement Plan Consultants | Correct Capital
As you think about the future prospects of your company and the well-being of your employees, implementing a retirement plan should be at the forefront. With our complete range of services and deep commitment to acting only in your optimal interest, we'll help you guide your Pembroke Pines, FA business and staff from where you are to where you want to go. To start developing a plan that matches with your unique business and objectives, speak to a retirement plan consultant in Pembroke Pines, FA today at 877-930-4015 or contact us online.
