As an entrepreneur, you have likely spent years studying your craft, developing your skillset and expanding your business. You’re good at what you do. But unless your business specializes in business management itself, you may still have some questions about the best ways to run your company, manage cash flow, and maximize your profits.
One area we see business owners run into some confusion is when it comes to idea of installing a retirement plan.
Should you offer a retirement plan? If so, what type?
What are the costs? Are they worth it?
What plan is best for my company? Which one is fair to my employees and to myself as a business owner?
These are common questions people face.
On the one hand, a retirement plan can make you a more attractive employer and can also help you offset taxes. As the owner of the business, you’re also allowed to participate in this plan and potentially defer a good amount of income from taxes. But on the other, it can cost the company money, require special administration and regulations, and there are a lot of options to choose from.
Some of the most common retirement plans for businesses include:
- Profit Sharing Plan
- Safe Harbor 401(k) Plan
- SEP IRA
- SIMPLE IRA
- Solo 401(k)
- Defined Benefit Pension Plan
So, how do you figure out what plan makes the most sense for you and your business? There are a wide variety of factors that will play a role in determining the plan that most adequately fits your company’s needs and long-term goals. As such, speaking to a financial planning professional will help to outline the exact steps to take that will place your business in a position to succeed.
Any way you slice it, the ability to build wealth is essential for you and your employees.
At Baron Silver Stevens Financial Advisors, we always act in a professional and fiduciary manner, opening the door to new financial opportunities for our clients. If you are ready to talk through the future possibilities for your company, contact our Boca Raton office today for a consultation.