Retirement plans have many advantages for both the employee and the employer. This is why it is wise and prudent for you to set them up as a business owner for your employee. However, when it comes to retirement planning, it is very important for you to understand its nuances well. This is why it is prudent for you to always consult a financial advisor for the need.
Make intelligent decisions when it comes to retirement
Andrew Corbman is the Founder of ASC Financial Inc and he helps clients make intelligent decisions when it comes to their retirement plans and financial wealth management. He says that when it comes to retirement plans, there are many clients who are not sure on what they mean and how it can positively impact their lives. Most of the time they ask friends and relatives and land up with making the wrong decisions in their lives. This is why he and his team of professional experts always advise clients and tell them that they should consult financial advisors with years of experience and skills in the field so that they can understand the key facts about retirement plans and make the correct decisions without hassles at all.
Get the retirement security you deserve with the right plan
There are certain facts that you must be aware of when you are about to take retirement. This will help you in choosing the right plan for your needs. The first fact is that your retirement can last for 30 years or more and so it is crucial for you to at least have 80% of your current income for a comfortable life. The second fact is in the USA, the average amount that you get from social security is $1200. This is why both you and your employer should opt for a retirement plan so that you reap its benefits during the later stage of your life.
Businesses should opt for the benefits of a retirement plan to give their employees the financial security when they retire. You as a business owner will receive many tax benefits as well as other incentives when you set up a retirement plan for your employees. Andrew Corbman says that when a business sets up a retirement plan, the employer contributions are tax deductible. All the assets that you have in the plan grow without taxes. You are able to set up flexible plan options. When you get tax credits and other incentives for starting a retirement plan, this might reduce costs. With the aid of the right retirement plan, you effectively are able to attract and retain better employees for your business and this brings down the training costs.
Employees, on the other hand, get the benefits of tax reductions. The investment gains and the contributions that are made are not taxed until they are distributed. The contributions can be done conveniently via deductions in the payroll. The compound interest over the years lead to significant savings in the long run says Andrew Corbman. The best part is that retirement assets have the ability to be carried forward from one employer to another. This means you do not have to worry if you change your job, he says.