Is your business's retirement plan still working for you? Economic, business and investment climates change for both better and worse and will reflect on your retirement portfolio. So, if you haven't sat down and reevaluated your plan, why not do so now?
The following questions will help guide you.
Is the plan still meeting your original objectives?
Why did you set up your plan in the first place? Did you want to get the maximum tax benefits you could? If so, look at your revenue stream over the past several years, as well as your future business plans. If your business looks as if it will continue to be stable and profitable, consider maximizing your contributions to receive more tax benefits. On the other hand, maybe you've added employees and now should consider a plan that covers them as well as you.
Is the plan fulfilling employee needs?
How many employees have joined or left the company? Did they participate in the plan? If your participation rate is low, consider plans that offer more participant-friendly features, such as loans. Or, if employee turnover is high, try providing incentives, such as less-restrictive plan eligibility requirements.
Is the plan too time-consuming?
Are you spending too much time on administrative tasks, such as IRS filings? Is your current plan provider not as proactive as you would like? It might make sense to move to a plan that has less flexibility but fewer administrative requirements.
How are your plan investments doing?
Are you satisfied with your plan's investment performance? Are your assets diversified enough to help cushion against market ups and downs? If the answers to either of these questions is "no," it may be time for an investment review to help keep your retirement portfolio on track.
Are you getting the right advice and guidance?
Retirement planning can be a daunting task, particularly for business owners. Is your retirement planning integrated with your other business and personal needs and objectives?
After reviewing these questions, you may feel that your current plan works just fine for now and that you'll evaluate it again in another year. Or, you may decide its time for a change. Whether you want to overhaul your investment menu, adopt a different plan or move to a new administrative arrangement, your Merrill Lynch Financial Advisor can help. He or she will work with you, your attorney and your tax advisor to help craft the retirement solutions that work for your business both now and in the future.