This document compares various retirement plan options for small businesses, including SIMPLE IRAs, SEP IRAs, 401(k) plans, and Safe Harbor 401(k) plans. It provides details on employer and employee contribution limits, eligibility requirements, advantages and disadvantages of each type of plan. Key facts highlighted include that SIMPLE IRAs require mandatory employer contributions matching employee contributions up to 3% of compensation, while SEP IRAs allow discretionary employer contributions up to 25% of compensation.
Admirable Worldwide is one-stop consultancy firm offering comprehensive solutions in Financial Planning and Consulting. We help individuals and corporates to achieve their strategic goals and objectives as well as increasing process efficiencies to optimize revenue and bottom line.
Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for your retirement.
Financial Planning is about “Planning Life” and “Financial Prosperity” and involves 95% strategy and 5% products. It is the blueprint for planning and management of all financial affairs for your entire life and consider holistic view that enables you achieving your life’s goals. For further details, please visit "http://www.admirableworldwide.com/".
Financial planning is a long-term process of managing one's finances to achieve goals. It provides a roadmap to financial well-being and sustainable wealth creation. Many misconceptions exist, such as that it only involves budgeting or is only for the wealthy. Financial planning is needed due to risks like living too long in retirement, changing lifestyles, inflation, and lack of social security. It involves understanding assets, liabilities, priorities, timelines, and appropriate investment vehicles. Starting financial planning early allows greater benefits of compounding returns. Using systematic investment plans smooths out market volatility for better long-term returns. Financial planners can help develop and implement customized plans.
Financial planning involves identifying an individual's financial needs and goals over time and developing a strategy to meet those needs and goals. The key objectives of financial planning are to identify monetary requirements, prioritize financial needs, assess one's current financial position, plan savings and investments to achieve goals, and optimize returns through diversification. Systematic investment plans (SIPs) allow regular investing of small amounts in mutual funds and are an effective way to benefit from rupee cost averaging and the power of compounding returns over the long term. Insurance provides protection from life's uncertainties and ensures one's dependents are provided for in times of need.
Financial planning is for everyone. If you're like most people, financial planning might seem very complicated and confusing, and you might not know where to start. However, here are some ideas to help you get started.
Cooperative Financial Investment and Managementjo bitonio
This document discusses financial wellness, savings, investments, and different investment options. It defines financial wellness as having an understanding of one's financial situation and preparing for the future. Savings are defined as money set aside for preservation of capital and inflation, while investments are purchases aimed at generating future income or appreciation. Key factors for successful investments are discussed as risk, return, safety, time, and type. Different investment vehicles are also outlined such as stocks, real estate, mutual funds, bonds, and certificates of deposit.
Financial Planning for Youth
A simple, easy to understand guide for youngsters to learn how to manage their money and create wealth.
This presentation sheds light on the factors that are critical to a healthy financial management over one's lifetime. It will further take you through the fundamentals of planning - be it investment planning, risk management, tax and contingency planning or planning for your retirement.
Admirable Worldwide is one-stop consultancy firm offering comprehensive solutions in Financial Planning and Consulting. We help individuals and corporates to achieve their strategic goals and objectives as well as increasing process efficiencies to optimize revenue and bottom line.
Financial Planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a house, saving for your child's higher education or planning for your retirement.
Financial Planning is about “Planning Life” and “Financial Prosperity” and involves 95% strategy and 5% products. It is the blueprint for planning and management of all financial affairs for your entire life and consider holistic view that enables you achieving your life’s goals. For further details, please visit "http://www.admirableworldwide.com/".
Financial planning is a long-term process of managing one's finances to achieve goals. It provides a roadmap to financial well-being and sustainable wealth creation. Many misconceptions exist, such as that it only involves budgeting or is only for the wealthy. Financial planning is needed due to risks like living too long in retirement, changing lifestyles, inflation, and lack of social security. It involves understanding assets, liabilities, priorities, timelines, and appropriate investment vehicles. Starting financial planning early allows greater benefits of compounding returns. Using systematic investment plans smooths out market volatility for better long-term returns. Financial planners can help develop and implement customized plans.
Financial planning involves identifying an individual's financial needs and goals over time and developing a strategy to meet those needs and goals. The key objectives of financial planning are to identify monetary requirements, prioritize financial needs, assess one's current financial position, plan savings and investments to achieve goals, and optimize returns through diversification. Systematic investment plans (SIPs) allow regular investing of small amounts in mutual funds and are an effective way to benefit from rupee cost averaging and the power of compounding returns over the long term. Insurance provides protection from life's uncertainties and ensures one's dependents are provided for in times of need.
Financial planning is for everyone. If you're like most people, financial planning might seem very complicated and confusing, and you might not know where to start. However, here are some ideas to help you get started.
Cooperative Financial Investment and Managementjo bitonio
This document discusses financial wellness, savings, investments, and different investment options. It defines financial wellness as having an understanding of one's financial situation and preparing for the future. Savings are defined as money set aside for preservation of capital and inflation, while investments are purchases aimed at generating future income or appreciation. Key factors for successful investments are discussed as risk, return, safety, time, and type. Different investment vehicles are also outlined such as stocks, real estate, mutual funds, bonds, and certificates of deposit.
Financial Planning for Youth
A simple, easy to understand guide for youngsters to learn how to manage their money and create wealth.
This presentation sheds light on the factors that are critical to a healthy financial management over one's lifetime. It will further take you through the fundamentals of planning - be it investment planning, risk management, tax and contingency planning or planning for your retirement.
This chapter discusses the valuation of long-term securities such as bonds, preferred stock, and common stock. It defines key valuation concepts and terms, and provides formulas and examples for valuing different types of bonds including coupon bonds, zero-coupon bonds, and perpetual bonds. It also covers preferred stock valuation using a perpetuity formula, and discusses that common stock valuation considers future dividends and potential sale proceeds.
Safety & risk, True Financial freedom, Concept of passive income, Building Financial freedom fund, Steps to achieve financial freedom, How to build financial freedom faster?
Market risk, Inflation risk, Safety of value of money
This document outlines topics that will be covered in a financial planning course, including how to plan an investment portfolio, understand assets and liabilities, ensure adequate insurance coverage, learn about different asset classes and risk appetite, plan for post-retirement income and children's education, relate investments to goals, and achieve financial peace and happiness. It also discusses concepts like the new economy, goal setting, overcoming challenges, and inverting the savings equation from expenses-focused to savings-focused.
What Young Adults Need to Know About Money-03-16Barbara O'Neill
This document provides information about important life skills for young adults, including personal finance. It discusses the importance of financial capability and lists essential life skills like budgeting, cooking, home repairs, and personal finance. It also summarizes a lecture on preparing students for an environment with limited natural resources by becoming more self-sufficient. The document then provides information about personal finance topics like saving, comparing interest rates, budgeting, compound interest, credit reports, insurance, and financial education resources for students.
A Systematic Withdrawal Plan (SWP) allows an investor to withdraw a predetermined amount from their mutual fund investment at regular intervals. SWP provides retirees with a regular source of income while allowing ongoing capital appreciation of the remaining investment. It offers more flexibility and tax efficiency compared to other fixed income options like bank FDs. Illustrative examples show how SWP from equity and non-equity mutual fund schemes can provide higher long-term returns than comparable bank FDs while paying lower capital gains tax.
The document provides guidance on when and how much venture capital early-stage companies should raise. It recommends initially raising small amounts from friends and family, using that to build a product and pilot customers. It then suggests raising an angel/seed round and keeping costs low for the first year to prove scalability. It outlines when companies should consider venture capital versus other options. The document also provides tips on pitching VCs, including optimal fundraising seasons, pitch deck structure, and services The Rudder Group can provide to help companies raise capital.
Concur vs SAP on premise Travel ManagementSven Ringling
How does Concur, SAP's cloud solution for Travel and Expense, compare to the traditional SAP on-premise Travelmanagement? Comparing Apples with Pears giving current SAP customers an indication of the change to be expected in a Concur transformation project
Uncommon Knowledge: Learn what new investors can expect when they work with SEI and Park Avenue Securities.
www.fhfg.com
See what everyone's talking about on my Voices page:
http://www.scl.bz/users/1/stevenlichtenstein
http://facebook.com/pages/Steven-D-Lichtenstein-CLU-ChFC/245576538796818
www.linkedin.com/in/stevenlichtenstein
Steven D. Lichtenstein is an Investment Advisor and Registered Representative of Park Avenue Securities LLC (PAS). Securities products/services and advisory services are offered by PAS,95-25 Queens Blvd, 10th Fl., Rego Park, N.Y. 11374, 1-718-268-9255, a Registered Investment Advisor and broker-dealer. Forest Hills Financial Group Inc. is not an affiliate or subsidiary of PAS. PAS is a member of FINRA, SIPC. Steven D. Lichtenstein is a Field Representative of The Guardian Life Insurance Company of America, New York, N.Y. 10004.
Steven D. Lichtenstein is an authorized user of The Living Balance Sheet, an electronic wealth organizational platform that provides a wide-angle view of your financial world and enables him to stress test your current financial approach. Gain insight and clarity on your complete financial picture, which when coupled with his professional experience and credentials, may provide you with the ability to make well-informed personal and business decisions and to take appropriate actions to achieve your desired results.
This presentation is made by students of ACPCE - Anamika Mishra, Kirti Karawde, Prathamesh Mahadik, and Ritik Kale.
This presentation introduces the concept of financial literacy to the young generation. It also gives tips on how to go from financially crippled to financially able.
This document discusses key topics related to bonds, bond valuation, and interest rates. It begins by outlining topics that will be covered in the chapter, including who issues bonds, bond characteristics, bond valuation, and determinants of market interest rates. The document then defines what a bond is and provides examples of different bond classifications. Several key bond characteristics are defined, such as par value, coupon payment, maturity date, call provisions, and sinking funds. The document also discusses bond valuation methodology and how bond prices are affected by changes in market interest rates. It provides examples to illustrate these concepts. The remainder of the document covers additional topics like bonds with semiannual coupons and different methods for calculating bond yields.
The document provides information on investing and financial planning. It discusses the importance of starting to save and invest early due to the power of compound interest over time. It also explains the concept of rate of return and shows how even a small difference in return can significantly impact the growth of investments. The document emphasizes the need to have specific, written financial goals and a plan to achieve them.
This document discusses the cost of capital and how firms calculate it. It defines the cost of capital as the rate of return a firm must earn on investments to maintain its stock price. A firm needs to calculate its weighted average cost of capital (WACC) to properly evaluate investment opportunities. The WACC takes into account the different costs of a firm's sources of capital, such as debt and equity, weighted by their proportions in the firm's target capital structure. The document outlines how to calculate the costs of different sources of capital and how to determine the WACC.
Financial literacy refers to having the skills and knowledge to make informed financial decisions about managing money through activities like making, spending, saving, borrowing, and investing. It involves understanding concepts like how money is made and earned, managing funds, and using investment opportunities to generate returns even when not actively using the money. Mastering financial literacy provides the understanding needed to maximize how money can work for an individual's benefit over time.
The document compares mutual funds and portfolio management services. Some key differences are:
- Mutual funds follow a common investment policy for all investors, while portfolio management allows for customized strategies based on individual risk profiles.
- Minimum investments are lower for mutual funds but higher for portfolio management services.
- Transaction volumes are larger for mutual funds and can affect prices, while individual portfolio transaction volumes are smaller.
- Market prices of mutual fund units may trade below asset value, while portfolio investment values equal underlying asset values.
- Mutual funds benefit from some tax exemptions, while portfolio management services provide customized solutions for active investors.
The document discusses various tax saving investment options available under Section 80C of the Indian Income Tax Act. It provides details on popular instruments like Public Provident Fund (PPF), Equity Linked Saving Schemes (ELSS) Mutual Funds, Tax Saving Fixed Deposits, National Savings Scheme (NSC), and ULIP/LIC insurance plans. It compares these options on parameters like lock-in period, typical returns, taxation status, and suitability for different risk profiles. ELSS funds are highlighted as offering the lowest lock-in of 3 years, highest post-tax returns in the long run, and best taxation status among the different 80C investment avenues. The document concludes by providing tips on choosing
This quick tour shows you how we set up and use the Sample Home Budget Workbook.I hope you enjoy it and add your own spin as you make your personal budget fit your own needs.
How to Create, Market and Manage Your Digital Brand Jeff Bullas
LIfe has become more complicated as you now need to manage your brand's offline brand as well as the increasingly important digital online brand. How do you create, market and manage your digital brand's presence online? What are the digital assets you should be creating? How do you market those assets?
This presentation was the keynote at the Digital Conference in Beirut, Lebanon that was the first digital conference in the Middle east by Al-Ikissad Wal-Aamal
[Assignment 16.1][Digital Marketing Strategy] Hung VanHung Van
The document discusses digital marketing strategies. It defines digital marketing as using electronic media like the web, email, and mobile to promote products and services. Some key aspects of digital marketing include targeted, measurable, and interactive engagement with customers. Common digital marketing tactics are online advertising, search engine optimization, email marketing, social media, and mobile marketing. The document then provides an example digital marketing strategy using the S.O.S.T.A.C. model for a correction fluid company called Tipp-Ex to promote its whiteout product through an interactive YouTube video campaign.
This chapter discusses the valuation of long-term securities such as bonds, preferred stock, and common stock. It defines key valuation concepts and terms, and provides formulas and examples for valuing different types of bonds including coupon bonds, zero-coupon bonds, and perpetual bonds. It also covers preferred stock valuation using a perpetuity formula, and discusses that common stock valuation considers future dividends and potential sale proceeds.
Safety & risk, True Financial freedom, Concept of passive income, Building Financial freedom fund, Steps to achieve financial freedom, How to build financial freedom faster?
Market risk, Inflation risk, Safety of value of money
This document outlines topics that will be covered in a financial planning course, including how to plan an investment portfolio, understand assets and liabilities, ensure adequate insurance coverage, learn about different asset classes and risk appetite, plan for post-retirement income and children's education, relate investments to goals, and achieve financial peace and happiness. It also discusses concepts like the new economy, goal setting, overcoming challenges, and inverting the savings equation from expenses-focused to savings-focused.
What Young Adults Need to Know About Money-03-16Barbara O'Neill
This document provides information about important life skills for young adults, including personal finance. It discusses the importance of financial capability and lists essential life skills like budgeting, cooking, home repairs, and personal finance. It also summarizes a lecture on preparing students for an environment with limited natural resources by becoming more self-sufficient. The document then provides information about personal finance topics like saving, comparing interest rates, budgeting, compound interest, credit reports, insurance, and financial education resources for students.
A Systematic Withdrawal Plan (SWP) allows an investor to withdraw a predetermined amount from their mutual fund investment at regular intervals. SWP provides retirees with a regular source of income while allowing ongoing capital appreciation of the remaining investment. It offers more flexibility and tax efficiency compared to other fixed income options like bank FDs. Illustrative examples show how SWP from equity and non-equity mutual fund schemes can provide higher long-term returns than comparable bank FDs while paying lower capital gains tax.
The document provides guidance on when and how much venture capital early-stage companies should raise. It recommends initially raising small amounts from friends and family, using that to build a product and pilot customers. It then suggests raising an angel/seed round and keeping costs low for the first year to prove scalability. It outlines when companies should consider venture capital versus other options. The document also provides tips on pitching VCs, including optimal fundraising seasons, pitch deck structure, and services The Rudder Group can provide to help companies raise capital.
Concur vs SAP on premise Travel ManagementSven Ringling
How does Concur, SAP's cloud solution for Travel and Expense, compare to the traditional SAP on-premise Travelmanagement? Comparing Apples with Pears giving current SAP customers an indication of the change to be expected in a Concur transformation project
Uncommon Knowledge: Learn what new investors can expect when they work with SEI and Park Avenue Securities.
www.fhfg.com
See what everyone's talking about on my Voices page:
http://www.scl.bz/users/1/stevenlichtenstein
http://facebook.com/pages/Steven-D-Lichtenstein-CLU-ChFC/245576538796818
www.linkedin.com/in/stevenlichtenstein
Steven D. Lichtenstein is an Investment Advisor and Registered Representative of Park Avenue Securities LLC (PAS). Securities products/services and advisory services are offered by PAS,95-25 Queens Blvd, 10th Fl., Rego Park, N.Y. 11374, 1-718-268-9255, a Registered Investment Advisor and broker-dealer. Forest Hills Financial Group Inc. is not an affiliate or subsidiary of PAS. PAS is a member of FINRA, SIPC. Steven D. Lichtenstein is a Field Representative of The Guardian Life Insurance Company of America, New York, N.Y. 10004.
Steven D. Lichtenstein is an authorized user of The Living Balance Sheet, an electronic wealth organizational platform that provides a wide-angle view of your financial world and enables him to stress test your current financial approach. Gain insight and clarity on your complete financial picture, which when coupled with his professional experience and credentials, may provide you with the ability to make well-informed personal and business decisions and to take appropriate actions to achieve your desired results.
This presentation is made by students of ACPCE - Anamika Mishra, Kirti Karawde, Prathamesh Mahadik, and Ritik Kale.
This presentation introduces the concept of financial literacy to the young generation. It also gives tips on how to go from financially crippled to financially able.
This document discusses key topics related to bonds, bond valuation, and interest rates. It begins by outlining topics that will be covered in the chapter, including who issues bonds, bond characteristics, bond valuation, and determinants of market interest rates. The document then defines what a bond is and provides examples of different bond classifications. Several key bond characteristics are defined, such as par value, coupon payment, maturity date, call provisions, and sinking funds. The document also discusses bond valuation methodology and how bond prices are affected by changes in market interest rates. It provides examples to illustrate these concepts. The remainder of the document covers additional topics like bonds with semiannual coupons and different methods for calculating bond yields.
The document provides information on investing and financial planning. It discusses the importance of starting to save and invest early due to the power of compound interest over time. It also explains the concept of rate of return and shows how even a small difference in return can significantly impact the growth of investments. The document emphasizes the need to have specific, written financial goals and a plan to achieve them.
This document discusses the cost of capital and how firms calculate it. It defines the cost of capital as the rate of return a firm must earn on investments to maintain its stock price. A firm needs to calculate its weighted average cost of capital (WACC) to properly evaluate investment opportunities. The WACC takes into account the different costs of a firm's sources of capital, such as debt and equity, weighted by their proportions in the firm's target capital structure. The document outlines how to calculate the costs of different sources of capital and how to determine the WACC.
Financial literacy refers to having the skills and knowledge to make informed financial decisions about managing money through activities like making, spending, saving, borrowing, and investing. It involves understanding concepts like how money is made and earned, managing funds, and using investment opportunities to generate returns even when not actively using the money. Mastering financial literacy provides the understanding needed to maximize how money can work for an individual's benefit over time.
The document compares mutual funds and portfolio management services. Some key differences are:
- Mutual funds follow a common investment policy for all investors, while portfolio management allows for customized strategies based on individual risk profiles.
- Minimum investments are lower for mutual funds but higher for portfolio management services.
- Transaction volumes are larger for mutual funds and can affect prices, while individual portfolio transaction volumes are smaller.
- Market prices of mutual fund units may trade below asset value, while portfolio investment values equal underlying asset values.
- Mutual funds benefit from some tax exemptions, while portfolio management services provide customized solutions for active investors.
The document discusses various tax saving investment options available under Section 80C of the Indian Income Tax Act. It provides details on popular instruments like Public Provident Fund (PPF), Equity Linked Saving Schemes (ELSS) Mutual Funds, Tax Saving Fixed Deposits, National Savings Scheme (NSC), and ULIP/LIC insurance plans. It compares these options on parameters like lock-in period, typical returns, taxation status, and suitability for different risk profiles. ELSS funds are highlighted as offering the lowest lock-in of 3 years, highest post-tax returns in the long run, and best taxation status among the different 80C investment avenues. The document concludes by providing tips on choosing
This quick tour shows you how we set up and use the Sample Home Budget Workbook.I hope you enjoy it and add your own spin as you make your personal budget fit your own needs.
How to Create, Market and Manage Your Digital Brand Jeff Bullas
LIfe has become more complicated as you now need to manage your brand's offline brand as well as the increasingly important digital online brand. How do you create, market and manage your digital brand's presence online? What are the digital assets you should be creating? How do you market those assets?
This presentation was the keynote at the Digital Conference in Beirut, Lebanon that was the first digital conference in the Middle east by Al-Ikissad Wal-Aamal
[Assignment 16.1][Digital Marketing Strategy] Hung VanHung Van
The document discusses digital marketing strategies. It defines digital marketing as using electronic media like the web, email, and mobile to promote products and services. Some key aspects of digital marketing include targeted, measurable, and interactive engagement with customers. Common digital marketing tactics are online advertising, search engine optimization, email marketing, social media, and mobile marketing. The document then provides an example digital marketing strategy using the S.O.S.T.A.C. model for a correction fluid company called Tipp-Ex to promote its whiteout product through an interactive YouTube video campaign.
How to optimize your digital marketing processes with Digital Asset Managemen...Osudio
Digital asset management (DAM) systems can optimize digital marketing processes by providing a central repository for digital assets. DAM systems allow for the creation, management, and sharing of content across multiple channels. Integration with other systems is key, as DAM acts as a central content hub. DAM saves time and money by facilitating easier finding and collaboration on assets while reducing duplicate searching and overhead costs.
Direct, Interactive & Digital Marketing Planning Rob Noble
The brief for this presentation was what is direct and digital marketing planning is and the differences and similarities between digital and mass marketing planning. There is a variety of examples used to explain points such as Coke and Nike.
Mutual funds pool money from individual investors to purchase securities like stocks and bonds. They provide benefits like diversification and lower costs than individual investors can obtain. The mutual fund industry has grown dramatically in recent decades as more households invest in mutual funds for retirement. However, the industry has also faced scandals involving late trading, market timing, and other conflicts of interest between fund managers and investors.
The Annual Planning Process & Social/Digital MediaGemma Craven
The document discusses best practices for annual planning processes (AOP) and integrating digital and social media marketing. It recommends developing an AOP that includes specific goals, key projects, budgets, and timelines for digital and social media initiatives. Measurement of initiatives should align with marketing funnels. Trends to consider include real-time marketing to capitalize on unexpected events, amplifying brand events, evolving community management roles, and driving advocacy through super fans and exclusive communities.
Optimize Your Asset Management Marketing Performance and Increase Client Acqu...Marketo
The “Battle for the Investor” has increased in complexity and investments organizations are trying harder than ever to differentiate themselves. The “winners” right now are defining strategies that address the current trends, but maintain the standards and philosophies that they are based on. The investor is becoming more sophisticated due to increased financial press coverage and easy access to less expensive investment information.
Is your organization attracting the right clients and meeting those expectations? Join this webinar to hear Joe Paone, Sr. Marketing Manager at Marketo and John Kariotis, President, AmberLeaf Partners, discuss the landscape and strategies for asset managers to succeed.
1. The document discusses planning and saving for retirement, including estimating costs of one's desired lifestyle and identifying sources of retirement income such as pensions, 401ks, IRAs, Social Security, and other savings vehicles.
2. It explains compound interest and its power to grow savings over time, demonstrating concepts like the Rule of 72.
3. The importance of starting to save and plan for retirement early is emphasized.
Is your digital marketing strategy well defined? There's no denying we are firmly in the digital era and nearly every company needs a solid online presence to grow. This webinar is designed for experienced and new marketers starting out in digital marketing. In this slideshare, you will learn how to plan your digital marketing strategies with an overview on: budgeting, planning, channels, lists and segmentation (CRM), tools and tactics.
"Non-Qualified Deferred Compensation Plans" was presented by Tom Sigmund on December 18, 2014, at the CPA Mega Tax Conference.
Tom discussed the details of non-qualified deferred compensation plans, including social security taxes, informal funding and penalties.
Digital marketing is marketing that makes use of electronic devices such as computers, tablets, smartphones, cellphones, digital billboards, and game consoles to engage with consumers and other business partners. Internet Marketing is a major component of digital marketing.
A presentation about digital marketing regarding Search Engine Optimization, Pay Per Click, and Social Media Marketing.
The presentation includes the advantages and disadvantages of SEO, PPC and Social Media Marketing and a short strategy that you can use with each one of them.
The Ab Cs Of Variable Annuities Presentationjtarnofs
1) Variable annuities are long-term investment products designed for retirement purposes that allow payments to an insurance company which then pays out an income or lump sum later.
2) There are fees associated with variable annuities including mortality and expense charges, sales charges, and fees for optional benefits.
3) Case studies are presented to show how variable annuities may help investors meet different financial goals like guaranteed retirement income or protecting beneficiaries.
Variable annuities and mutual funds are long-term investment vehicles designed for retirement. Variable annuities offer tax-deferred growth and death benefits while mutual funds allow for more flexibility but do not provide the same tax benefits. Both have associated fees that impact returns. Retirement planning should consider factors like longer lifespans, inflation, and rising healthcare costs to ensure adequate savings.
This document provides an overview and summary of preserving retirement assets through IRA rollovers. It discusses the options available when changing jobs, including taking a lump sum distribution, leaving funds in the previous employer's plan, or rolling funds over to a new employer's plan or a traditional IRA. It notes that taking a lump sum distribution can result in taxes and penalties that reduce the available retirement funds. The document then provides examples showing how much more money could be available in retirement by rolling funds over instead of taking a lump sum. It discusses the details and benefits of direct and indirect IRA rollovers.
Non-Qualified, Deferred Compensation with AXA EquitableDon McNeill, ChFC
BrightLife Grow is a life insurance product that provides wealth accumulation, retirement income, and downside protection. It offers tax-deferred growth, access to indexed accounts with potential upside but protected from downside losses, and the ability to take tax-free loans or withdrawals. The product is designed to be efficient with lower costs than competitors, reliable with its 0% floor protecting against market losses, and flexible to allow customization and adapt to changing needs over time. It can be a way to supplement retirement savings like 401ks and IRAs by providing another source of tax-advantaged funds.
The document introduces the M Financial Group and their "Super Roth" deferred compensation strategy. It summarizes that the strategy allows tax-free growth and tax-free withdrawals through a company-sponsored plan with life insurance funding. It provides hypothetical examples showing how the "Super Roth" strategy could provide higher total and spendable retirement benefits than traditional pension or personal investment strategies by diversifying accumulations and hedging against future tax increases.
To paraphrase Dickens, there’s a lot of controversy today about whether we live in the best of times or worst of times concerning retirement. On the one hand, many Americans generally have some kind of retirement support, if you include Social Security, Medicare, private and public pension plans, and the many types of pre-tax retirement plans, such as IRAs and 401(k)s.
On the other hand, demographic and economic forces are making retirement itself a much bigger challenge, primarily because people live longer now. That means you need to work and save enough today to somehow pay for later without employment — a tall order. And recent market upheavals have demonstrated that you may not be able to rely on the stock market in the short term to pay the bill.
This presentation will introduce you to strategies that could help you to potentially build a bigger nest-egg during your working years, make it last longer in retirement, and even pass on more to your heirs.
Because, after all, retirement should be a time to finally relax, stop worrying and enjoy life. But you can’t escape the daily grind until you are financially independent, which in the end is what retirement is all about. So bottom line, let’s talk about working toward financial independence.
This document discusses tax efficient investing using Investors Group Corporate Class Inc. funds and Allegro Corporate Class Portfolios. It provides an overview of tax planning strategies like conversions, deductions, and deferrals to reduce taxable income. It highlights how corporate class funds allow tax-deferred growth and flexibility without contribution limits. A case study shows how corporate class funds can generate over $60,000 more than regular investments over 25 years due to lower taxes. The document also discusses using series T funds for tax efficient monthly payouts through return of capital distributions.
The document discusses the benefits of fixed annuities for retirement planning. It notes that retirees face significant financial challenges, including rising healthcare and living costs. Fixed annuities offer guaranteed returns, provide a stream of income for life, and allow for tax-deferred growth. Immediate annuities provide guaranteed lifetime income, while deferred annuities allow for long-term accumulation of assets on a tax-deferred basis before receiving income.
The document discusses the benefits of fixed annuities for retirement planning. It notes that Americans are living longer but face financial challenges in retirement. Fixed annuities offer guaranteed returns, tax deferral, and can provide lifetime income streams. Both immediate and deferred fixed annuities are described as options to help investors meet their retirement income needs through guaranteed and predictable payments.
The document provides an overview and summary of a presentation on successful retirement planning. It discusses the current economic environment and where the economy has been, where it is now, and where it may be going. It also discusses employer-sponsored retirement plans and how they can fit different practices. The presentation was given by Tim Gaigals and covered topics like different types of retirement plans that are commonly used, when each type is best utilized, and how to design an effective retirement plan.
This document discusses tax efficient investing using Investors Group Corporate Class Inc. funds and Allegro Corporate Class Portfolios. It notes that these products allow investing outside of registered accounts while avoiding tax liabilities when rebalancing. A case study shows how using Corporate Class funds rather than traditional non-registered investments can lead to over $60,000 more in after-tax returns over 25 years. The document also discusses using Series T portfolios for tax efficient monthly payouts through return of capital distributions.
This document discusses tax efficient investing using Investors Group Corporate Class Inc. funds and Allegro Corporate Class Portfolios. It notes that these products allow investing outside of registered accounts while avoiding tax liabilities when rebalancing. A case study shows how using Corporate Class funds rather than traditional non-registered investments can lead to over $60,000 more in gains over 25 years due to tax deferral. It also describes using Series T portfolios for tax efficient monthly payouts through return of capital distributions.
Michael Silver & Company CPAs recently published an article on retirement plans for businesses. Whether you have a small, independent business or a large company, we discuss the advantages and disadvantages for each plan available.
Michael Silver & Company CPAs has recently published an article on the benefits of retirement plans. Whether you have a small, independent business or a large company, we describe the advantages and disadvantages of each possible plan for each possible business.
The document discusses the features and benefits of Tata AIG Life's InvestAssure Flexi unit linked insurance plan (ULIP). It offers flexibility in terms of premium payment terms, policy terms, investment fund choices, ability to make top-ups, switch funds and redirect premiums. The plan also allows partial withdrawals and provides a maturity bonus. The flexibility allows customers to customize the plan based on their protection and investment needs.
This document provides information on portfolio planning and investment options for retirement accounts using income drawdown. It discusses key considerations like the client's attitude to risk, investment objectives, and income requirements. It also describes various investment tools and options available on the Retirement Account platform, including portfolio funds, solution funds, and the Portfolio Trading Service which allows investing in multiple investment portfolios. Risks of income drawdown like investment risk and how market performance can affect future annuity income are also summarized.
Understanding annuities once and for allKirk Ashburn
Your guide to understanding the fundamentals of annuities, including their pros and cons, in an easy to understand manner so you can make an educated decision. Is guaranteed income for the rest of my life important to me? Is protecting the downside of my investment important to my family? Will I sleep better at night knowing that my investment will not lose value if the market drops tomorrow?
The document provides information about The Legend Group, which is an investment services provider offering retirement planning, education savings, insurance, and portfolio management solutions. It details the company's history of providing quality investment solutions for nearly 50 years. Clients work with financial professionals to develop customized plans for their specific goals.
1. The document promotes attending town hall forums and meetings to discuss topics related to accessing capital, financial planning, and business leadership.
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Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
BONKMILLON Unleashes Its Bonkers Potential on Solana.pdfcoingabbar
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5 Tips for Creating Standard Financial ReportsEasyReports
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Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
Vicinity Jobs’ data includes more than three million 2023 OJPs and thousands of skills. Most skills appear in less than 0.02% of job postings, so most postings rely on a small subset of commonly used terms, like teamwork.
Laura Adkins-Hackett, Economist, LMIC, and Sukriti Trehan, Data Scientist, LMIC, presented their research exploring trends in the skills listed in OJPs to develop a deeper understanding of in-demand skills. This research project uses pointwise mutual information and other methods to extract more information about common skills from the relationships between skills, occupations and regions.
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Retirement Presentation For Small Business
1. Retirement Plans for Small Businesses Shares of Oppenheimer funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested. Glenn Cowan, LUTCF Investment Advisor Representative OppenheimerFunds, Inc.
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10. 1. This hypothetical example is not intended to show the performance of any Oppenheimer fund, for any period of time, or fluctuations in principal value or investment return. 2. Retirement assets are taxed when withdrawn. Withdrawals prior to age 59 ½ may be subject to a penalty tax in addition to ordinary income taxes. What’s in it for you? The potential for accelerated growth of savings due to tax-deferred compounding The illustration here shows how much faster money can grow in a tax-advantaged retirement plan relative to a comparable investment in a non-tax-favored vehicle. Assumes $100 of salary saved per month, 8% rate of return, 20-year savings period 1 . Page RE0000.191.1208 $59,308 $43,696 $32,759 $27,713 Retirement Plan 2 15% Tax Bracket 28% Tax Bracket 35% Tax Bracket
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17. Comparing Plan Types Maximum Annual Contributions 2009 Figures do not include Catch-up contributions (where otherwise applicable) Page RE0000.191.1208 Compensation SIMPLE IRA SEP IRA Single K Single DB Plus $40,000 $12,700 $10,000 $26,500 $100,000+ common (depends on income, age, years to retirement) Annual benefit as high as $195,000 $80,000 $13,900 $20,000 $36,500 $120,000 $14,100 $30,000 $46,500 $196,000 $17,380 $49,000 $49,000
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45. Single K Plan SM Not available to businesses with employees Considerations SEP IRA Payroll Deduction IRA 401(k) Non-traditional Profit-sharing plans Profit-sharing Safe Harbor 401(k) SIMPLE IRA Defined Benefit Non-qualified Deferred Comp. Single K Plan SM Page RE0000.191.1208
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66. It Doesn’t Matter Who Provides Your Retirement Plan One Other Myth: Page RE0000.191.1208
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69. Global/International Equity Small-/Mid-cap Equity Large-cap Value High Yield Income Aggregate Income Large-cap Growth Cash Conservative funds generally carry a lower level of risk but also offer lower rates of return. Aggressive funds generally carry a higher level of risk but have the potential to offer a higher rate of return. Investment Choice Page RE0000.191.1208
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Editor's Notes
First, thanks for meeting with me. You’re busy, and I know you’ve probably got a long list of things to do today. That’s why the information I’m going to share with you will take just a little amount of your time. When I’m done, though, I hope that you’ll agree it deserves more of your attention than that. Because, really, what you do with the facts you’re about to hear will help determine how you spend 10, 20, perhaps even 30 years, of your life. Some of you may already have a retirement plan in place. If so, we’ll examine whether your plan is still the best option for you and your business.
If you’re one of the few small-business owners who has a retirement plan, congratulations! Surprisingly, according to the Department of Labor, only 45% of companies with 99 or fewer employees offer a retirement benefit. If you don’t already have one, you’re passing up a terrific opportunity to enhance the financial security of your later years. You’re also ignoring a number of great advantages that could make a real difference right now. Let’s take a brief look at why establishing a retirement plan is a smart choice.
With advances in medical technology, most people will need enough assets to support a retirement that could last two or even three decades. And, speaking of medical technology, health and long-term care expenses are likely to be one of your major retirement costs. Then there’s Social Security. While no one knows exactly what will happen to it, many expect the program will experience cutbacks. You should also be aware of what the eroding impact of inflation can do to the savings you have squirreled away. Even at a rate of 4% per year, your cash will lose more than half of its purchasing power in 20 years. Now, the question is, do you want to be age 65 or 70 facing these possibilities without adequate resources?
There are three major misconceptions that keep many business owners from putting together the kind of retirement strategy they need. They have decided not to establish a plan for some mistaken reasons based on outdated information. Let’s take a look at each myth.
The first myth is “My business will subsidize my retirement.” Most business owners have immediate problems that seem far more pressing than how they’ll finance an event that’s years away. But thinking that you’ll pay for retirement with the windfall you get from the sale of your business is an easy way to put off some hard decisions…and that could be a big mistake.
While being in business for yourself has always been a risky undertaking, it’s probably never been riskier. A new competitor…a new product…a new technology…an unexpected hardship… a downturn in the economy—and the risk that the market value of your business can plummet in very short order, are all hazards and obstacles small businesses eventually face that contribute to the uncertainty of their success. Even two or three mediocre years right before you plan to sell your business can have a severe impact—especially if you’re not inclined to put a lot of money into its recovery. Are you willing to have the quality of your later years depend entirely on the fate of a single venture—even if it is your own?
The second myth—“I can’t afford a plan”—is a very common notion. And there’s really just one appropriate response to it: you can’t afford not to have a plan. Today’s retirement plans are not the ones you may have looked at in years past. Very recently, Congress has supported new retirement arrangements that are a lot friendlier to smaller ventures. These programs are now less expensive, more flexible and much easier to administer. And some require little—or even no—special testing or reporting to make sure they comply with government regulations. Yet they still offer the same tax advantages and competitive edge that have made retirement programs so popular with larger companies.
The third myth says that you can’t attract high-caliber employees without a high-caliber paycheck. Quality employees are in great demand these days. And while money is usually the biggest draw, it’s not the only one. Employees today, even younger ones, are seriously considering their retirement security. With so many large-company workers saving through 401(k)s, the financial media has given employer-sponsored plans—and retirement issues, in general—a huge amount of publicity. Even nonfinancial media are discussing these subjects in depth. The result of all this attention is a growing awareness of the need to save for retirement.
Your contributions and all investment earnings—capital gains, interest and dividends—remain sheltered from taxes until you withdraw the money at retirement…when your tax bracket could be lower. What’s more, you decide how those dollars should be invested among the Oppenheimer mutual funds you’ve selected for your plan.
The impact of saving on a tax-deferred basis can give your nest egg a dramatic boost. This illustration shows how much faster money can potentially compound in a tax-advantaged retirement plan, relative to a comparable investment in a non-tax-favored savings vehicle. Assuming an 8% rate of return and a 20-year savings period, you can see that an individual putting away just $100 a month through a retirement plan has quite an advantage, regardless of his or her tax bracket.
Then there are the advantages of investing in mutual funds within a retirement plan. These include diversification and asset allocation. Diversification is spreading your risk by investing in a variety of securities—not just across three major categories, but within each group as well. Why invest in several kinds of stocks or bonds? Even investments in the same asset class have different patterns of risk and return. And because they do, the poor performance of one can often be offset by the good or stable performance of others. Let’s take a look at the illustration here comparing the difference between a diversified and nondiversified portfolio. This client invested a lump sum of $100,000 into a single investment earning 5% a year for 20 years with no other changes to principal. If that client placed the same $100,000 split into five $20,000 investments, each earning a different rate of return (in one case showing a loss), for the same 20-year period, he would have come out ahead.
You can further diversify your risk through what is called asset allocation. Asset Allocation involves maintaining a target mix of stocks, bonds and cash equivalent investments that reflects the best balance of risk and reward for your individual situation. Many financial experts agree that the way you allocate your money among these three asset classes—rather than how good you are at choosing individual securities—has, by far, the biggest impact on your long-term returns and the volatility of your overall portfolio. The percentage of your money you place in each class depends, to a large degree, on what your objective is, how much risk you’re willing to take and how much time you have. The model portfolios shown here are designed to guide you in structuring an investment mix appropriate for your own time frame and risk tolerance. They may not be suitable for all individuals in all situations.
Now what about your business…how can a retirement plan help? Well, first of all, it’s a tax shelter for your business, too. Since employer contributions to a qualified retirement plan are a tax-deductible expense, sponsoring a plan also gives your business an immediate tax break. Second, putting a retirement plan into place can be a surprisingly inexpensive and simple way to add a major incentive to your benefits package. In a moment, when I review the highlights of these plans, you’ll actually see how cost-effective and easy it can be to set up and run one. Third, today’s retirement plans give small employers more flexibility than ever before. You can control how the plan is funded...the maximum amount that can be sheltered under the plan…who’s eligible to participate...when employees are vested…what types of investment funds are available to your workers...and even how much time you want to spend administering the program.
Last of all, what about your employees? What’s in it for them? They’ll achieve the same benefits we’ve already mentioned: Postponement of taxes on contribution and earnings until withdrawal Control over the investment of their accounts Accelerated growth of savings due to tax-deferred compounding Diversification through mutual funds Asset allocation Think of the peace of mind they’ll enjoy. Just knowing they’ve got a nest egg invested can relieve a good deal of anxiety about the future. Bottom line, most small business owners—and I’m sure you’re one of them—want to do what’s right for their employees. They know that their workers—like themselves—need to save for their futures. I really don’t think that there’s a better way to help them do that than by giving them access to the tax advantages of a retirement savings plan.
If you set up your plan a few years ago, the situation that led to your choice could be entirely different today. Changes in the composition of your work force, a larger number of employees, a more solid financial picture, tax law changes—these are just some of the reasons you might get more out of a different type of plan. (Optional: Actually, based on what you’ve already told me, I know of several other alternatives you’ll want to consider.) Also, the range of plans available is now wider than ever. Over the last several years, Congress has authorized some new retirement arrangements aimed at small businesses. Another important reason to consider a change: you may be disappointed in the service and investment options offered by your current provider. Are your administrative tasks kept to a minimum? Is your recordkeeping timely and accurate? Do your employees have the type of educational materials they need to build their investment knowledge? And the account access and investment options to effectively manage their own retirement assets? If you’re on the fence with respect to any of these critical issues, it’s definitely time for a change. And, shortly, I’ll demonstrate why a switch to OppenheimerFunds deserves your strongest consideration. To help you begin the process of deciding whether the plan you’ve got is actually the best one for you, I’m going to give you a quick overview of what’s out there today.
So, let’s assume that establishing a retirement plan is a step you want to take. Or maybe you’re unsure if your current plan is the best one for your business. Let’s take a look at what kind of plan is best for you. (Optional) While OppenheimerFunds offers several types of retirement plans, thanks to the questionnaire you filled out earlier (or “what you’ve already told me about your business and needs”), I’ve been able to narrow down the options to those most appropriate for your situation. To help you make a decision, I’ll give you a quick overview of each plan’s key points. There’s a good deal more information I can share with you later. And I do have materials for you to review at your leisure. For the moment, though, I’ll focus on the major features of each plan.
Let’s take a look at the maximum amount a business owner can contribute to depending on the type of plan they establish. For simplicity sake, let’s assume the business owner has not reached age 50 and catch-up contributions don’t apply. In addition, let’s assume the business owner makes the maximum contribution permitted under each plan. In a SIMPLE IRA, the maximum contribution a business owner can make in 2009 is a $11,500 deferral plus a 3% matching contribution based on annual compensation. In a SEP, the maximum tax deductible contribution a business owner can make in 2009 is 25% of annual compensation, up to $49,000. In a Profit-sharing or Money Purchase Pension plan, the maximum tax-deductible contribution a business owner can make in 2009 is 25% of annual compensation, up to $49,000. With a Single K, the maximum tax-deductible contribution a business owner can make in 2009 is 25% of annual compensation plus an additional $16,500 in deferrals. Overall limits cannot exceed 100% of income up to $49,000 ($54,000 for individuals age 50 or over). With a Single DB Plus, contribution limits commonly exceed $100,000 per year. The limit is dependent on various factors such as income, age, years to retirement. The annual benefit is as high as $195,000 a year in 2009.
SIMPLE IRAs are one result of Congressional focus on the needs of small businesses. They’re designed specifically for employers with 100 or fewer eligible employees. Individuals with self-employment income earned on a part- or full-time basis and nonprofit organizations (including governmental entities) can also adopt SIMPLE IRAs.
SIMPLE IRAs require employers to contribute to participants’ accounts and give employees the option of adding their own contributions through pretax salary deferrals. Employees can make annual pretax, salary deferral contributions of up to $11,500 or 100% of income, whichever is less. In addition, catch up contributions limited to $2,500 may be made by participants age 50 and over.
As the employer, you can handle your funding of the plan in one of two ways. First, you can match each employee’s contributions dollar-for-dollar, up to 3% of compensation. You also have the added option of matching as little as 1% of each participant’s compensation for any two years out of the last five year period.
The second alternative is to contribute 2% of each eligible employee’s compensation, regardless of their participation in salary deferrals. Please be advised the compensation cap for 2009 for this purpose is $245,000.
On the whole, if you’re looking for a plan in which workers share responsibility for their own retirement savings, but without the cost and complexity of a traditional 401(k), a SIMPLE IRA may be an ideal solution.
Although SIMPLEs are easy and inexpensive, remember that your contributions are mandatory, which may make these plans somewhat more costly than other alternatives. In addition, employee contributions are 100% vested immediately, which might be a negative feature if your turnover is high. Lastly, the contribution ceiling for SIMPLEs is relatively lower than other retirement plan options.
Simplified Employee Pension Plans—or SEPs, for short—have actually been used by small businesses, particularly self-employed individuals and professional partnerships, for years. SEPs are ideal for those who want to shelter a significant amount of income from taxes and save for retirement through a plan that’s fairly easy to set up and maintain.
Unlike SIMPLEs and 401(k) that permit employee deferrals, SEPs don’t. You, as the employer, can put in a maximum of 25% of employee’s compensation or $49,000 in 2009, whichever is less. In addition, the percentage contributed on behalf of each worker must be the same. If you’re a self-employed individual with no employees, the maximum you can put into your own account is 20% of your adjusted net profit.
Contributions made to a SEP are discretionary and may be skipped in any given year. SEPs are one of the retirement plans we’ll discuss today that permit social security integration. Retirement plans that are integrated with Social Security use a contribution formula that takes employees’ Social Security payments into account. Using such a formula allows higher paid employees to receive a higher contribution percentage. So if you’re goal is to maximize retirement plan benefits for key members of your staff, Social Security integration can be a strong plus. Like SIMPLEs, SEPs are easy to establish and maintain. They require none of the government reporting that 401(k)s do.
Generally, the same percentage of compensation must be contributed for all participants including you, as the employer. If you choose to use an integrated contribution formula, you and your higher paid employees may be able to receive a larger portion of the plan’s assets. It’s important to note that employees are immediately vested in their SEP accounts, which means that when they leave they can take their contributions with them. The SEP’s eligibility requirements also make it difficult to exclude part-timers. This feature may be a potential minus for some employers. And, of course, since SEPs are entirely funded by the employer, employees can’t share in the responsibility by adding their own dollars to their accounts. Finally, SEPs require some top-heavy testing and possible top-heavy contributions to make sure they don’t unfairly favor higher-paid employees.
OppenheimerFunds Payroll Deduction IRA offers all business owners the opportunity to provide a valuable employee benefit without expensive administrative costs. This is the only retirement plan with no set-up costs, no employer contributions and no employer-based administrative fees.
This plan allows employees to have a portion of their paycheck automatically deposited into an OppenheimerFunds IRA. It’s entirely up to your employees if they want to put money away in their IRA. IRA contributions for 2009 are limited to $5,000 plus $1,000 in catch-up contributions for workers age 50 or older. Employees can choose to invest in an OppenheimerFunds traditional IRA, Roth IRA or both.
This is a low cost plan alternative for employers because employees fund their IRA accounts through payroll deductions. In addition, there are no administrative fees or expenses to the employer. Payroll deduction IRA are simple to establish and maintain. There are no discrimination testing or government reporting requirements.
Compared to other retirement plans, the maximum annual contribution to a Payroll Deduction IRA is low. Like all IRA products, loans are not permitted within this plan.
Like SIMPLEs, 401(k)s allow employees to make salary deferral contributions with pretax dollars. Currently, they can contribute up to $16,500—or 100% of their compensation, whichever is less.
As the sponsor, you can match these deferrals based on a variety of formulas, although the match is totally discretionary. This is in sharp contrast to many other retirement plans that require employers to make contributions to the plan. Total employer and employee contributions are limited to the lesser of 100% of compensation or $49,000 for 2009.
401(k)s have been extremely popular among both smaller and larger employers for years. They offer a great deal of employer flexibility and are viewed as a very attractive benefit by employees, with good reason. Vesting schedules are available for 401(k)s. In addition, the employer can set eligibility standards that employees must meet before they are permitted to participate in the plan. Unlike plans such as SEPs and SIMPLEs, loans and hardship withdrawals are permitted.
Although they offer so much flexibility, 401(k)s are highly regulated and employers must perform certain tests to ensure their plans remain in compliance. The reason for testing is to help ensure the plan does not discriminate in favor of highly compensated employees. 401(k) plans and other retirement plans must be periodically evaluated to ensure that they don’t unfairly favor highly compensated employees or the owners of the business. If they do, you’re usually required to make some changes, like returning contributions of highly compensated employees, or contributing additional funds on behalf of non-highly compensated employees. Some of you may be thinking what is a highly compensated employee? The IRS defines it as any employee earning $110,000 or more in gross compensation and ranking among the top 20% in pay for the entire company. For these and other reasons, the administration and reporting for 401(k)s can be complex. Another noteworthy consideration is cost. 401(k)s are generally more expensive to maintain and administer than other retirement plan options.
The traditional safe harbor 401(k) is a solution for clients who like the flexibility associated with 401(k) plans but not the cumbersome administration. Generally, these plans work well for employers with low employee participation and who have owners and highly compensated employees that can’t contribute what they would like to based on the non-discrimination rules.
As the employer, you can handle your funding of the plan in one of two ways If you choose to use the matching contributions, you’re required to match 100% of each participant’s contributions up to the first 3% of compensation, and 50 cents on contributions on the next 3-5% of compensation. Enhanced matching contributions are available as well. The non-elective contribution formula requires you to make a contribution equal to 3% for all eligible employees, even if they don’t participate in salary deferrals.
With a Safe Harbor 401(k), nondiscrimination and top-heavy testing is automatically satisfied for Safe Harbor employer and employee deferrals. This means that owners, key managers and other highly compensated employees are eligible to defer the maximum, even if the non-highly compensated employees don’t participate, or participate at very low deferral levels. Finally, the Safe Harbor 401(k) offers all the same benefits as the Traditional 401(k) plan option.
Unlike the traditional 401(k), Safe Harbor employer contributions are mandatory. You must make either a matching contribution or non-elective contribution on behalf of your employees. Like SIMPLEs and SEPs, contributions are immediately 100% vested. As the employer, you must meet notification requirements. Generally, before an existing 401(k) plan or Profit-sharing plan can take advantage of the safe harbor rules, a 30-day notice must be issued. Existing 401(k) plans must contain the appropriate safe harbor language prior to the first day of the plan year. Existing Profit-sharing plans must amend their plan three months prior to the end of the plan year, October 1 for calendar-year plans. Generally, the 30-day notice also must be issued each year the employer wants to use Safe Harbor.
What’s the difference between a SIMPLE IRA versus a Safe Harbor 401(k)? To begin with, a Safe Harbor 401(k) is generally appropriate for any business with 25 or more employees, while only employers with 100 or fewer eligible workers may establish a SIMPLE IRA. The administration associated with both a SIMPLE IRA is low. There are no testing or government filing requirements. SIMPLEs are generally less expensive than Safe Harbor 401(k) plans. There is a $15 annual participant fee for a SIMPLE IRA. While employer contributions are mandatory in both a SIMPLE IRA and Safe Harbor 401(k), the employer may contribute more to a Safe Harbor 401(k) than a SIMPLE IRA. In addition, an employee may contribute the lesser of $10,500 or 100% of compensation to a SIMPLE in 2008. A Safe Harbor 401(k) permits employees to contribute 100% of income up to $16,500 for 2009. Lastly, Safe Harbor 401(k)s offer more flexibility than SIMPLEs including loans, hardship withdrawals and the option to restrict eligibility. If your client is looking for flexibility and the ability to put more money away for a retirement plan and doesn’t mind the cost, a Safe Harbor 401(k) may be the better option. On the other hand, if your client is looking for a low cost plan option, the SIMPLE IRA may be the way to go .
The new OppenheimerFunds Single K Plan SM is a new retirement savings alternative for owner-only businesses. This includes owners with immediate family members. It also includes owners with part-time or seasonal employees who may be excluded from the plan. Furthermore, if you have highly compensated employees only, you may be eligible for the Single K Plan. Businesses can be incorporated (partnerships and corporations) or unincorporated (sole proprietorships).
In 2008, the employer can make a tax-deductible contribution up to 25% of compensation. In addition, salary deferrals equal to the lesser of 100% of employee’s compensation up to $16,500 can be made to the Single K Plan SM . Furthermore, individuals age 50 or older may contribute an additional $5,000 in salary deferrals beyond the $16,500 deferral limit. Salary deferral contributions are counted toward the $49,000 limit. Catch-up contributions do not count towards the $49,000 limit. Overall limits cannot exceed 100% of pay based on the first $245,000 of compensation, up to $49,000.
A Single K Plan offers the opportunity to save for retirement through Traditional (pre-tax) and/or Roth (after tax) investing Unlike a Roth IRA, participants may contribute to a Roth 401(k) regardless of how much they earn. The Roth 401(k) feature is available for salary deferral contributions only. Profit sharing contributions are treated as Traditional (pretax) 401(k) contributions. There is a single maximum 401(k) contribution limit for both Roth 401(k) and Traditional 401(k) contributions. $16,500 in 2009, plus $5,000 age 50 catch up Salary deferral contributions may be split between Traditional 401(k) and Roth 401(k) contributions within these limits
Salary deferrals are a critical feature that set this product apart from other plans designed for a self-employed business owner. This product permits employers to contribute substantially more to the plan than other alternatives. For example, a business owner earning $80,000 can make a deductible employer contribution up to 25% of compensation or $20,000 in this example. Additionally, the owner can defer up to $16,500 for a total contribution of $36,500. Of course, if the business owner is age 50 or older, they can contribute an additional $5,000 for an overall contribution of $41,500. Single K Plans SM are inexpensive to maintain. There is a $15 annual maintenance fee charged to the account. Loans and hardship withdrawals are permitted in Single K. Also, the Roth 401(k) feature is available with our Single K. Last, these plans are simple to administer and generally don’t require 5500 filing or testing unless assets reach $250,000 or there are non-owner employees in the plan.
This plan was really designed with owner-only businesses in mind. To keep it simple and avoid testing and government reporting requirements, this product is not available for businesses with employees.
Profit-sharing plans, which are funded solely by employer contributions, are a good choice if you like the features of a SEP, but want more control over your plan’s eligibility and vesting.
You as the employer, can put in a maximum of 100% of employee compensation or $49,000 for 2009, whichever is less. In addition, the percentage contributed on behalf of each worker must be the same. If you’re a self-employed individual with no employees, the maximum you can put into your own account is 20% of your adjusted net profit.
Contributions to a Profit-sharing plan are completely discretionary. In fact, they don’t even have to bear any relationship to profits, and may be skipped altogether in a given plan year. The contribution limits associated with a Profit-sharing plan are high when compared to other plans. In addition, social security integration is permitted in this plan. Profit-sharing plans allow you to exclude most part-time and seasonal workers. It also gives you some flexibility in structuring a vesting schedule as a means of keeping assets in the plan and out of the pockets of employees who stay with you a short period of time. In addition, it includes provisions for loans and hardship withdrawals.
In general, if the employer chooses to make a contribution to the plan, the same percentage of compensation must be contributed for all participants. The added flexibility and control that come with a Profit-sharing plan do have a price—more administration, including top-heavy testing and IRS Form 5500 filing. Note, too, that Profit-sharing plans don’t permit employee contributions unless coupled with a 401(k) feature.
OppenheimerFunds makes Profit-sharing plans available in several variations that are suitable for a wide variety of clients, including corporations, partnerships, and sole proprietorships. Age-weighted, New Comparability and Super Comp plans offer all the benefits of traditional Profit-sharing plans, plus greater flexibility. Testing is based on projected benefits at retirement, not on allocations of contributions to the plan. This means that you no longer are required to contribute the same percentage of pay for all participants. In fact, larger contributions can go to older, higher paid owners and employees. Briefly, this is how each of these plans work:
Age-weighted plans are suitable for owners and principals of small companies who are older and paid better than the rest of their employees, who require a plan with a flexible contribution schedule and who are concerned that they get the largest portion of the total plan contributions.
The factors used to determine the Age-Weighted contribution allocation include the participant’s current age, the plan’s retirement age, which is usually age 65, the participant’s years to retirement, the present value of dollars at retirement based on an assumed interest rate--between 7.5% and 8.5%--and finally, the participant’s current compensation.
The premise behind this method of nondiscrimination testing is the time value of money. A dollar invested today by a younger employee will be worth more at normal retirement age than the same dollar similarly invested by an older employee. So if a plan is designed to provide benefits that will be equally valuable at retirement age, then it must provide a higher contribution for an older worker than for a younger worker. Sounds discriminatory, but it’s legitimate.
Contributions for older employees may be considerably higher than those made for younger employees. Like traditional Profit-sharing plans, a business may contribute the lesser of 100% of participant’s annual compensation or $49,000 for 2009. Age-weighted plans have the same flexibility as traditional profit sharing plans. Contributions are discretionary and vesting schedules are permitted.
There are no prototype documents available. This means that start up costs are slightly higher, due to the need for IRS submissions. Also, since the annual allocation formulas are more complex than with a traditional Profit-sharing plan, the administration associated with an Age-weighted plan or any cross-tested plan will be slightly higher.
The best candidates for New Comparability plans are companies with owners who seek contribution flexibility, who want to maximize their share of the plan contributions, and who are older than the rest of their workforce.
The New Comparability Profit-sharing plan takes Age-weighted a step further. These plans go beyond age and use specific employee classifications when calculating plan contributions. Under these arrangements, participants are divided into two or more classes, and these classes can be based on any reasonable criteria, such as ownership in the company, job classification, length of service with the company or age.
What makes these plans so compelling is that the contribution formulas allow for larger contributions to be made for one class than for another class of participants. In fact, if the circumstances are right, the result is usually extremely high contributions for the favored group, usually the owners, and more minimal contributions for everyone else.
New Comparability plans share the same potential drawbacks as the Age-weighted Profit-sharing plan. No available prototype documents means slightly higher start-up costs due to the need for IRS submissions. And again, since annual allocation formulas and testing procedures are complex, the annual administration associated with a New Comparability plan is somewhat higher than a traditional Profit-sharing arrangement.
Super Comp plans are a combination of Safe Harbor 401(k) plans with New Comparability Profit-sharing plans. The best candidates for Super Comp are companies that have consistently failed discrimination testing, make contributions of 5% or more, want to max out contributions for owners and highly compensated employees and want a larger portion of plan contributions for themselves. Speaker: (Tab back to Safe Harbor plans if you need to review the details).
Super Comp delivers to the owners, principals and Highly Compensated employees the best features of these two plans. There are no discrimination tests for Safe Harbor contributions, so the higher paid employees can max out on their salary deferrals. The New Comparability contribution will cover any top heavy requirements. And finally the highly compensated employees will continue to receive the maximum Profit-sharing allocations while contributions for the rank and file employees are minimized.
No available prototype documents means slightly higher start-up costs due to the need for IRS submissions. You must make either a Safe Harbor employer matching contribution or non-elective contribution on behalf of your employees. 401(k) salary deferrals and Safe Harbor employer contributions are immediately 100% vested. You will also need to provide the safe harbor notice to notify your employees, as was discussed earlier.
All the plans discussed so far are defined contribution plans that offer a variable benefit at retirement, depending on how the plan’s investments perform. Defined benefit plans, as their name implies, provide a specific benefit at retirement. The right candidates for defined benefit plans are small, high revenue companies and professional groups and for older business owners who have never implemented a retirement plan and now want to accumulate a large level of assets in a short time.
Defined benefit plans allow for higher contributions than any other qualified plan. The maximum retirement benefit is 100% of compensation up to an annual maximum of $195,000 in 2009. Defined benefit plans take the guesswork out of retirement. Employees will know how much they can expect to receive at retirement. Another nice feature of defined benefit plans is that it’s possible to contribute the maximum of 100% of compensation or $49,000 to a defined contribution plan and still fund a defined benefit plan.
Defined benefit plans are more expensive to establish and maintain than the other plan types we have discussed. In addition, you must make contributions to the plan on a quarterly basis. And regardless of how the plan’s investment perform, benefits must be paid to employees according to the plan’s defined benefit formula.
Now that you have a basic understanding of the kinds of plans that might be appropriate for your needs, I’d like to talk about one more misconception that many business owners have. This is the myth that says it doesn’t matter who your retirement plan provider is. The truth is, it matters a great deal. As a small business owner, you take enough risks right now. You don’t need to take chances with your retirement, too, by placing your trust in the wrong organization.
So, what should you look for in a provider? I would suggest three considerations that are absolutely critical: The provider’s experience, as well as the principles that stand behind its ability to deliver what it offers…the quality and range of its investment offerings…and the convenience, ease and service that are part of its retirement vehicles.
Underlying this commitment are six core principles that we believe form the foundation for long-term investor success. Together with our unique Investment Approach, these simple tenets represent the spirit and driving force behind what we believe is The Right Way to Invest : Insist on solid, long-term performance Do what you say you’re going to do Embrace a disciplined, collaborative approach to investing Know the difference between risk and risky Encourage financial planning and professional advice Be user friendly.
The Oppenheimer funds offered in any of the OppenheimerFunds retirement plans might include some or all of the following types of mutual funds Cash Aggregate Income High Yield Income Large-cap Value Large-cap Growth Small-/Mid-cap Growth Small-/Mid-cap Value Global/International Equity
Finally, you want a provider to offer the kind of convenience and plan support that make it easy for you to reap all the benefits a retirement plan offers. Here, too, OppenheimerFunds strives to maintain a higher standard. OppenheimerFunds retirement plans include a whole package of support services that promote agreement, simplicity, ease and employee appreciation of your plan. For example, your participants will receive regular account statements to help them monitor investment growth, and enjoy fund exchange privileges that make it easy for them to adjust their investment allocations. OppenheimerFunds internet site and voice response system offers 24-hour access to account information and the ability to perform certain transactions. Finally, we make sure plan participants receive regular communications that highlight the value of the benefits you’re making available. And our user-friendly educational materials will build their understanding of sound retirement planning and smart investing principles. Remember too that, in partnership with OppenheimerFunds, I’ll not only help you identify the plan that best suits your needs—I’ll also help you chart a realistic course for helping meet all those financial goals critical to your dreams for the future.
I know I’ve given you a lot of information in a short amount of time. If nothing else, I hope I’ve convinced you of two things: First, that there’s really no good reason today to pass up the important advantages a retirement plan offers and, second, that the value and service I can offer you in partnership with OppenheimerFunds clearly makes one of OppenheimerFunds retirement plans your best choice. Thanks very much for your attention. Now I’d be happy to answer any of the questions you have so far.