Successful businesses are built on many key ingredients, and one of the most important are its employees.
Everyone is relieved that the economy is getting back on track, and unemployment has been steadily going down. As the job market tightens, employers need to stay competitive to retain their employees, and attract new talent too. According to the Bureau of Labor Statistics 2019 survey, more than half of workers participated in a workplace retirement plan. Access to plans is growing and employers don’t want to be left behind, but there are both small and big hurdles for businesses to overcome when it comes to employer-sponsored retirement plans.
Partnering with the right team, such as the Arvest Wealth Management Retirement Plan Consulting group, can help allay some of these worries. Click the video above to learn more about the Arvest Retirement Plan Consulting team.
Worried about whether you’ll be able to continuously fund the plan?
During profitable years, adopting a company retirement plan may seem like an easy next step. Owners of small businesses know all too well that factors far outside their control can sometimes reverse their fortunes. How much funding should be on the employer’s shoulders, how much on the employees? Different plans have different funding requirements, so this burden may not be as big as it seems, but it’s a lot harder to take away benefits than it is to grant them. Our team takes an unbiased, consultative approach in assessing each organization’s retirement program.
We can provide perspective on what’s worked for other companies, so you have can have a better feel for what’s appropriate for your business.
Worried about which plan is the best choice?
Although 401(k) plans are the most popular direct contribution plans, smaller businesses may want to consider a SIMPLE IRA or a SEP IRA. Other options are available for charitable institutions, it’s all about finding what’s suitable given your businesses capabilities and needs. A short overview of six types of employer sponsored plans is listed on our website, and we’d be pleased to explain the costs of each plan variation and the benefits they can provide you and your employees.
Our team can do the analysis for you, and help build a new plan around your needs. Needs and business sizes change over time too. If you have a plan already, we could help reassess whether or not there might be a better design available given how your situation has changed.
Worried about whether your employees will understand the plan?
There are company responsibilities for the plan that go beyond paying for it, such as communicating with employees. How much new work will there be for the payroll department? What will be the company’s responsibility for the investments? What are the implications for IRS reporting? Company retirement plans are more complicated than starting an Individual Retirement Account, and part of the employer’s responsibility is making sure the employees understand their choices and risks.
We will work with you to develop an education plan that addresses your company’s unique structure and your employees’ specific educational needs. Should you decide to proceed, we’d educate your employees through group enrollment and education meetings. Your employees can also receive one-on-one goal-based financial planning with an Arvest Wealth Management Client Advisor.
Worried about paperwork and liability?
Being a fiduciary is a large responsibility that can’t be taken lightly. An employer adopting a qualified retirement plan is taking on a range of new obligations. What if the notices are forgotten and not sent out, or the plan investment options aren’t appropriate? Our independent investment review process provides an in-depth analysis of the plan’s investment choices on a quantitative and qualitative basis, including benchmarking to respective peer groups and indices.
Arvest Wealth Management can act, in writing, as the 3(21) Investment Advice Co-Fiduciary or 3(38) Discretionary Investment Manager Fiduciary. Our team provides full fiduciary oversight services, including 404(c) compliance adherence assistance, fee and service benchmarking, and plan governance and compliance.
Still worried about retaining and attracting talent?
Creating a competitive edge by providing a way for your employees to save for retirement is a great start, and assessing an existing plan to ensure it’s the best available doesn’t hurt either. It provides a morale boost and better financial security for employees and their families, plus a better financial foundation for the owners too. It may only be one step in creating a great workplace, but one step leads to another, which can lead to an even greater leap. Attracting great employees creates a more positive work environment, which may attract referrals and even better talent.
It wouldn’t be a big step if it were easy to make. The Arvest Wealth Management Retirement Plan Consulting team would be pleased to meet face to face, or over the phone to discuss building a new plan from the ground up or enhancing and managing an existing plan to help you attract and retain the most qualified employees.
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