With the final dust comfortably settling on this year’s tax season, we can know begin to put together the pieces of this new reality that may have plan sponsors and their service providers rethinking their long-held strategies.
Tag "Ted Benna"
The primary reasons for small businesses that you don’t offer 401k plans are cost, complexity, and liability exposure. The traditional 401k plan has a lot of baggage rolled to those areas. It’s complicated. It’s definitely not easy. For local business of 10 to 15 employees that have so many different things they have to deal with, they just aren’t in position to want to have to deal with the baggage with the 401k plan.
Benna expertly explains why small businesses face nearly insurmountable obstacles when it comes to establishing a 401k, America’s preferred retirement savings vehicle. He then shows how to re-frame existing retirement plan vehicles in a way that small business owners and employees will find more appealing.
In this retirement plan version of the game “Who Killed Cock Robin?” we can identify three macroeconomic trends that slayed the pension plan, once the giant among all retirement plans. But, where does the 401k fit in?
Despite those imagined rosy memories, actual history shows, with a few notable exceptions, pensions were never as universal or as lucrative as imagined.
Looking worse for state-run plans, what will fill the fiduciary void, and income infatuation.
Ted Benna says ERISA/PBGC – not the 401k – killed pension plans and that pensions no longer make sense given our current job-hopping demographics. He also says a lot more in this must read interview.
“Fiduciary” means “Forever,” you can’t take back “Forever” and risk takers/followers.
Why you should always take the money and run, always listen to dad and never believe what you read in the papers.
FiduciaryNews.com Trending Topics for ERISA Plan Sponsors: Week Ending 9/22/17
Pension problems, spaghetti regs, and the never ending battle between stocks and bonds.