Just starting a plan? Time for a review? Define your purpose.
As a small business owner, the decisions you make on a daily basis are important. Your time is important, as is having access to quick, accurate, concise information. Many things must be accounted for, and an employer-sponsored retirement plan is one of them.
Deciding to start a retirement plan for your small business is a big step. It takes additional time and additional resources. It also takes an additional commitment to your employees. Committing to starting and maintaining a retirement plan also comes with great responsibility.
Before starting your employer-sponsored retirement plan, ask yourself, “what is the end goal?” This question will help you determine the purpose of your plan. Answers might include:
- To provide a savings vehicle for retirement
- To provide incentive for your employees to stay with you
- To provide a tax break for your business
- To encourage personal financial freedom
Determining the purpose of your plan is an important step that will focus its design and implementation.
In the coming weeks, we’ll discuss other important factors to take into consideration. We’ll also discuss common concerns and issues and their remedies.