One Size Does Not Fit All
One size does not fit all in retirement plans. As a retail and fashion expert, I know to be weary of the words, “one size fits all” when it’s stamped on clothing labels. It’s impossible for one pair of elastic pants to fit around the many varying sizes of bodies in this world just as one type of retirement plan can’t accommodate all businesses. While the 401(k) might be the most popular option and it might fit the most people, it isn’t the only type of retirement plan to choose from.
The same principles that apply to selecting the perfect pair of slacks can also be applied to shopping for a retirement plan. The next time you’re in the market for a new or updated plan, ask yourself these 3 questions:
What is my destination?
Wearing fancy pants to your kids’ birthday party may not be the most suitable wardrobe option. Pricey pants aren’t nearly as desirable when they’re smudged with cake stains and torn from one too many trips to the bouncy house. Think about what your goals are for the retirement plan and where you see things going. Are you a business owner looking to shelter money from taxes? Want to give your employees a jump start to saving? There are countless reasons why you may want to start or update a retirement plan, and there are many great benefits for doing so. The right plan should accommodate your needs while still adhering to regulations.
How is the quality?
Everyone wants their slacks to last longer than one wash and your retirement plan administrators should be no different. When shopping for an adviser or third party administrator, keep in mind the quality of services they offer. Do they provide good guidance and information about your plan? Are they able to answer questions promptly? Do they have experience with plans of your size and type? Select quality experts to avoid potential hiccups down the road.
Don’t forget about style!
Defined benefit pension plans once reigned the retirement scene but as of late, their numbers are declining wildly. These plans are being replaced with more modern options but that doesn’t mean they’re extinct. You should work with a plan administrator that can provide expertise on your style of plan, even if it’s a less popular choice.
Retirement plans have come a long way since the 80’s (just as fashion has) and there are several different plan design scenarios a qualified professional can create for you. Find an experienced third party administrator that can assist you in defining your goals and design a custom-tailored plan around those objectives. Just for fun, let us know some of your favorite once-trending styles in the comments below.