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Employer-sponsored retirement plans—such as 401K, Defined Benefit Plans, Cash balance plans, ESOP, Simple IRAs and similar programs—are often a central component of a business owner’s long-term employee and human resource planning.
While these plans provide your employess a structured way to save for retirement, the decisions surrounding them are rarely isolated. They compliment an employee’s direct compensation package and help create a positive enivroment to support and retain your essential mangement team, salaried employees and hourly workers.
At Redstone Capital Management, employer-sponsored retirement plans are evaluated as part of a broader, coordinated financial planning process for your valued team of employees.
Employer-sponsored retirement plans are designed to help your employees accumulate financial assets over time, above and beyond simple cash compensation and often include features such as:
These features can provide a foundation for your employees’ retirement savings and help them to understand how they fit into a broader financial and compensation strategy.
A retirement plan is one part of a larger financial compensation package for your employees and is meant to enhance their working relationships, reward employee performance and make your business a more attractive place for employees and their families. A well-planned employer sponsored retirement plan is intended to help with retention of your best employees as the job market competition increases industry by industry.
Planning considerations often include how these accounts affect:
A structured approach helps evaluate how employer-sponsored plans contribute to long-term operational objectives of your company rather than simply relying on wages to support your valued workforce.
Employers have multiple financial resources to offer their valued employees, which may include:
Coordinating these elements can provide a clearer understanding of how different accounts contribute to long-term workforce planning. This coordination helps ensure that your business stays attractive and competitive for the talent your business needs to perform.
Employer-sponsored retirement plans are not static.
Over time, changes may occur in:
A structured planning process includes reviewing how these plans continue to fit within the overall financial strategy and making adjustments as needed.
As your employees move through different stages of their careers and approach retirement, employer-sponsored plans often become more central to their financial planning.
Considerations may evolve to include:
These decisions should be evaluated within the broader context of each employer sponsored retirement plan.
This approach may be relevant for business owners’ who:
For these business owners, understanding how these plans fit into a broader strategy can improve not only the stability of your work force but also the performance of your team over time.
Redstone Capital Management is based in Scottsdale, Arizona and works with business owners locally and across the United States.
The firm incorporates employer-sponsored retirement plans into its broader financial planning process to help business owners evaluate how these benefits compliment a standard salary or pay package over time.
Employer-sponsored retirement plans are evaluated within a broader framework:
Review available retirement plan types, contributions, and overall financial packages for your employees.
Evaluate how retirement plans align with long-term goals and other financial resources you need to support your workforce.
Coordinate decisions within the context of broader compensation and benefit planning that align with the values of your business.
Revisit and adjust planning considerations over time as economic, industry and govermental programs evolve.