Three Big Misconceptions About Retirement Plans for your Business

For small business owners, it’s a great feeling when you’ve grown your company to the point of being able to offer comprehensive benefits, especially a quality retirement plan, to your employees. A retirement plan benefit is also a great  way to attract and keep talented team members. However, identifying and setting up a retirement plan can be daunting and often intimidating, and there is a general feeling among small business owners that there may not be a retirement plan that fits their needs.

There are three widespread misconceptions about retirement plans we hear from business owners:

“My options are limited.”  

There is only one option – most people know “401(k)” and that is all they know. In truth, there are many other retirement plan options for small businesses, many of which are simple and inexpensive to maintain. A good financial advisor can also customize your retirement plan for your specific needs, long term growth goals, and employee opportunities.

“This is going to cost me a lot of money.”

Many entrepreneurs are concerned about potential cost of setting up and maintaining a retirement plans.  They are not free (or cheap), but the vast majority of plans are agreed upon because the tax savings outweigh the cost of plan maintenance. It’s an investment in the long term foundation of your company. When you start to look at retirement plan options, make sure you are understanding the benefits, not just the cost.

“Setting up a retirement is too complex and time-consuming.”  

Are retirement plans complex? At first glance, maybe. There are a lot of numbers and factors to consider when shopping around for plans if you choose to take on that task yourself.

However, in most situations, there will be a retirement plan administrator. They exist to translate plan options, talk numbers, and help you get back to what you enjoy doing the most while still keeping you informed about how your retirement plan is working for you and your employees. A great plan administrator will guide you and answer any questions – that is what you are paying them for.

Even after a little demystifying you may be left wondering, “Where do I start?”

That’s where financial advisors come in. A financial advisor should be to offer guidance, but if they are speaking in jargon and acronyms, it could just be more confusing. Make sure the advisor you’re talking to is willing to slow down, express patience in explaining concepts, and can illustrate exactly how each plan option works.

We are excited to announce we are rolling out a new business retirement plan service, Conscious-k, in collaboration with a TPA (third party administrator). This administrator works with us and you to make sure that you have the best options to consider when shopping for a business retirement plan that makes sense for you.

Ready for a business retirement plan that gives back to your employees and aligns with your values? Check out Conscious-k for more information and to schedule an initial consult.

Important Social Security Changes — Act By April 30th

If you are between ages 66 and 70 and you’re reading this, you need to act now!

Many of you may have seen or heard about recent changes to social security.

There were a number of significant changes approved last year and we want to make sure that you are aware of them.  The simplest way to do this will be by age group. If you are close in age to one of the following groups, we highly recommend you contact your financial advisor to double check your social security benefits.


You will not be affected.  We repeat: if you are currently receiving monthly social security benefits, your benefits will not be affected by the changes.  However, if you have any specific questions, please feel free to reach out to us.


Flashing Neon Sign – ACT NOW.  If you or your spouse is between age 66-70, they you may still be eligible for the benefit strategy that is being phased out (know as “File & Suspend”).  We just had a client call in who was 68 (and their spouse was age 66) and was not receiving benefits.  After discussion, they are scheduled to start benefits now–the deadline is April 30th.

By starting benefits now, his wife will be able to collect a spousal benefit now as well. This allows her personal benefit and his benefit continue to grow.  This strategy will put thousands more in their pocket over their lifetimes.

If you are in this group, the deadline for filing with Social Security is April 30th, 2016.  Please contact us as soon as possible, so we can help you develop and implement the best strategy.  I cannot stress this enough: don’t let the ship sail on your chance for important Social Security benefits if you qualify.


Although File & Suspend will be gone, you may be eligible for Spousal Only benefits. This is a strategy that will let you choose just your spousal benefits (assuming that your spouse is receiving benefits) and therefore maximize your lifetime benefit.

If you are in this group, your deadline is much longer (December 31st, 2019), but when you are close to age 66 it is worth discussing with your advisor.

Navigating Social Security can be a challenge, and we are here to help. If you have any questions, please let us know.  If you, your spouse, or someone you know is between 66-70 and not collecting benefits…ACT NOW!

To summarize:

  • If you are getting benefits now – stay the course.
  • If you are between 66-70 (or almost 66), reach out to your advisor as soon as possible!
  • If you are between 62-66, discuss this issue with your advisor anytime, but specifically when you are approaching sixty-six years old.

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