Retirement Savings – Risk Free Alternatives to Traditional Plans
Retirement savings plans are a difficult sell to small employment groups, even in the best of times. Employers are reluctant to take on set-up costs, administrative fees and the worry about compliance with discrimination testing and the other requirements of ever changing federal regulations. For their part many employees are uncomfortable with the risks of investing in stock market based products and often the requirement to invest larger amounts than they can comfortably budget.
Our voluntary retirement savings plans address the concerns of both employers and employees. These plans impose no costs or fiduciary responsibilities upon the employer, with the exception of agreeing to withhold payroll deductions for those employees who wish to participate. Employees can participate for as little as $5.00 per week, and be assured that their investments provide the safety of an attractive fixed rate of return. To increase flexibility, plans can be structured in a number of different ways to maximize potential tax advantages. For example, a savings plan can be set up as a Roth IRA, if the employee wishes
Additionally, these programs are both portable and provide “completion guarantee”. “Completion guarantee” means that even if the employee dies or is permanently disabled, the plan itself provides funding which would approximately replace the contributions the employee would have made to age 65. This benefit is made possible by a small life insurance policy with waiver of premium which the employee purchases upon beginning a savings plan. Portability allows each participant the ability to continue the program without penalty when they change employers. Because employees will change employers an average of seven times in a working lifetime, this benefit is very useful.
Let us show how easy this program is to sell and how much it will be appreciated by your clients, employers and employees alike. We are also willing to guess that you will find some good use for your extra commissions.
