Interstate 401k -- A Road Map to Comprehensive Employee Benefits
Friends, today I’m posting from Disney World of all places. You might wonder why in a sea of Mickey ears I’m thinking about comprehensive employee benefits, but I’m finding some interesting parallels between visitors to the Magic Kingdom and small business owners trying to do right by their employees.
If you’ve ever been here, you know this place is huge. Even if you know what you want to do (Tower of Terror anyone?), it’s the kind of place that requires a map to get around.
So it goes for small business owners. Some folks have been here before, or at least have comfort in the landscape and language of retirement planning. For those new to offering a 401k to their employees, a road map is essential. And the reality is that in 401(k) World, everyone can benefit from a map because the lay of the land is always changing. Government rules and regulations, new investment choices -- these are just a few of the reasons why double-checking the GPS is a good idea.
My life’s work has been focused on providing low cost 401k plans to help small business owners and their employees retire comfortably. The vast majority of clients I’ve worked with have been passionate about taking care of their people. Offering a 401k plan as part of a well-rounded employee benefit package is an important way they show their appreciation for an employee’s talent and dedication, as well as retain that employee well into the future.
The sad truth is, although many employees are eligible, their discomfort with financial matters often creates a mental barrier to their entry into a 401k plan. For small business owners offering a 401k as part of comprehensive employee benefits, this can be disheartening. But with a road map in hand, the barrier is easier for hesitant employees to overcome.
So what should this road map highlight? At the Magic Kingdom, attractions, restaurants and shopping are found in the map’s key. For a small business owner, use the map to show employees:
- A clear path to their retirement goals
- A variety of low-cost investment choices
The decisions that come hand-in-hand with offering a 401k plan as part of comprehensive employee benefits can be overwhelming. But with the help of a detailed road map and a knowledgeable 401k plan provider, the path becomes clearer and the journey can even become enjoyable. Because let’s face it: in a lot of ways, investing in a 401k plan is like a visit to Tomorrowland. Now go get your map and travel boldly into your future!
Don’t have a map? Contact me and I’ll draw up one depending on where you want to go. Or drop me a note in the comment box below and let me know how you’re using a 401(k) plan as an employee benefit!
About Greg Carpenter
Greg Carpenter founded Employee Fiduciary in 2004. With 29 years of experience in accounting and finance, Greg has brought his expertise to a variety of advisory, senior and executive management roles. Greg has worked for a national accounting firm, a Fortune 500 plan sponsor, a major brokerage firm, and he served as the CEO of a major 401k TPA firm. He is a CPA and earned his BA from Yale and his MBA from The University of Chicago Booth School of Business.