“Many small-business owners believe that their businesses will furnish a comfortable retirement for them. As golden years approach, they anticipate selling their nest egg and living off the proceeds.
This may account for the fact that retirement plans are severely underutilized by business owners. The Small Business Administration’s Office of Advocacy reported that fewer than 2% of business owners had a Keogh (self-employed profit-sharing) plan, only 18% participated in a 401(k) plan, and more than nine million self-employed individuals do not have any retirement plan coverage.” See the full Wall Street Journal article at //ow.ly/2nbWc.
We understand why you might be reluctant to put a retirement plan in place for your employees. Retirement plans can be expensive, difficult to administer, and a fiduciary risk if not managed properly. But for all the valid reasons you’ve hesitated, there are just as many compelling reasons to institute a 401(k) plan for your employees.
Remember to look for low cost, open architecture, and no-load plans.