Business Financial Planning

maps laid out on table

Business Is About Employees
Financial Security Enhances Retention

The advisors at Retirement Strategies & Investments helps you find the balance between the financial needs of your employees and the needs of your business. Our customized solutions have the affordability you demand, while building loyalty and retention among employees who appreciate being appreciated.

We provide plan services to companies, closely-held businesses, tax-exempt organizations, and governmental units. We offer services for the following plan types:

  • 401(k)
  • Roth 401(k)
  • Profit Sharing
  • 403(b) - TSA
  • 457 - Government Plans
  • Simple IRA
  • Cash Balance Pension Plan
  • ESOP
  • Stock Bonus
  • Non-Qualified

It is not just what we do, but how we do it, because there are many 401(k) options available. We methodically explain the ups and downs of each, always keeping in mind your financial goals and time horizon. At Retirement Strategies & Investments, we can get you started now, or help you evolve your current plan if your needs are changing.

Our comprehensive methodology includes:

  • Investment Policy Statement design
  • Providing investment option mix selection information to plan fiduciaries
  • Semi-annual investment option mix selection reports and reviews with plan fiduciaries
  • Regular status meetings with plan sponsors
  • Support for plan sponsor ongoing employee education
  • Goal setting with human resources representatives
  • Providing goal-setting tools at employee group or individual meetings
  • Follow-up employee meetings
  • Assisting employees with evaluating how retirement assets integrate with other personal assets and financial goals
  • Annual competitive survey of the 401(k)

A profit-sharing plan is a group incentive plan that includes all employees of an organization, and focuses on overall business unit profit, or a similar bottom-line financial goal, and it can be linked to company objectives other than profit.

What are the advantages and disadvantages?

The key advantage is that the plan is funded from profits, so there is low risk for the company. Funds can be used to supplement company retirement contributions. Also, it is an opportunity to train employees on financial measures and the operational business
factors that affect those measures.

Profit-sharing is easy to integrate with other reward and recognition systems, and can be either pay-at-risk or an add-on program.

The disadvantage is that profit alone may be too broad of an objective to focus employees on behavioral change needed for organization’s success. Also, it can be demotivating if there is no profit to share.

The advisors at Retirement Strategies & Investments will help you sort through the advantages and disadvantages to ensure your profit-sharing plan meets your objects and motivates your employees.

There is no guarantee that a business owner will not see their nest eggs shrink. Economic instability, potential new tax laws, or a black swan event can profoundly impact your retirement plan.

Defined contribution (DC) 401(k) plans limit the amount a business owner or highly compensated employee can defer, and the amount employers can contribute. As many business owners near retirement, there is growing concern that sufficient retirement
savings are unattainable.

For owners who want to optimize their retirement plan strategy, one possible solution is a cash balance pension plan alongside their existing 401(k) plan. A cash balance pension plan is a defined benefit (DB) plan with features that resemble a DC plan. These include having a dedicated service team, combined benefit statements, streamlined data collection, and potential savings on administration costs.

Benefits of a Cash Balance Pension Plan for Employees:

  • May allow for greater retirement benefits as compared with a DC plan alone, especially for highly compensated employees and owner-employees.
  • Provides a defined monthly benefit or lump-sum based on the account balance at retirement.
  • Plans are tax deferred until benefit payment(s) begin (monthly annuity payments or a lump sum distribution).
  • Balance benefits are generally portable.
  • ERISA protects qualified plan assets from creditors in the event of a lawsuit or bankruptcy.
  • Participants do not bear the investment risk, and benefits are guaranteed.