FOR BUSINESS OWNERS – On a personal note
Here, you will find information on different topics for business owners. This information is updated frequently. We hope you find it useful. If you are considering a review of your company retirement plan for any reason, please contact us for more information. We also offer unique retirement planning options for business owners that they can implement for themselves WITHOUT having to include employees. This is a powerful, stand-alone strategy that many business owners have been looking for.
Have you worked hard on building your business over the years, and in doing so neglected to establish and fund an adequate personal retirement plan for yourself that will even come close to meeting your needs? If that sounds like you, Leveraged Wealth Creation is a set of strategies designed to fill “gaps” in a client’s retirement plan or financial planning strategy. Using leverage, these programs provide an opportunity for wealth creation, the structure of custom business planning arrangements and much more.
Leveraged Wealth Creation programs address the conservative area of your portfolio and are designed to provide cost and benefit stability in your program over time – or to provide flexibility in business planning. Working together, an efficient loan product and a stable-performing crediting product provide you with a conservative retirement, business planning or wealth creation program. These programs are funded and backed by some of the strongest and most well- funded financial firms in the world. They are designed to provide an answer to the question: how will you fund your future?
COMPANY RETIREMENT PLAN REVIEW
We start the process by identifying qualified plans that are local to our offices in Pasadena that have particular issues. These issues or “RED FLAGS”, include poor performance, high percentage of retirees still in plan, high fees, low participation, insufficient fidelity bond coverage, excess contribution penalties and many others. These are plans that need help. We schedule an appointment, meet with the owner or CFO, provide a complete plan overview, and then solutions to correct the issues. We understand that time is a commodity for you, so we do as much of the heavy lifting as possible for you – we make it simple.
1.Why does your company offer a 401 (k) plan and are you meeting your objectives?
2.Do you know your 401(k) plan fiduciaries)?
3.Have all of your plan fiduciaries read and gained an understanding of the plan documents?
4.Do you have the appropriate Section 412 bond?
5. Do you have insurance?
6. Is your plan a 404(c) plan?
7. Do you have a vendor selection process in place for retention and review?
8. Do you conduct regular investment committee meetings and prepare minutes to reflect issues discussed and actions taken?
The Section 404(a) duty-of-prudence can best be served by a well-documented, effective process.
9. Do you regularly benchmark your investment options in regard to performance, fees, and expenses?
The Section 404(a) duty of loyalty includes defraying reasonable fees and costs and acting for the exclusive benefit of plan par¬ticipants and their beneficiaries. A well-doc¬umented process in this regard in necessary and must go beyond just performance com¬parisons, and include fees and expenses.
10. Do you compare the effort expended in providing healthcare benefits to the effort your company puts into providing 401(k) benefits?
For benchmarking and comparison purposes, an interesting examination may be the efforts put forth by your company in selecting a health care plan when compared to the efforts in selecting a 401(k) plan. After all, there are no fiduciary duties or personal liability involved in selecting a health care plan, and, more importantly, health care plans mainly put company funds at stake. In contrast, 401(k) plans involve fiduciary duties, and notably, involve participant funds. Thus, where participant funds are at stake, your company must put in sufficient time and effort, which should be at least as much as, if not more than, that put into health care plans.
DEFINED BENEFIT PLAN TERMINATION
In today’s financial environment, many employers face major challenges in meeting the obligations
of their defined benefit (DB) plans. Sustained low interest rates, an uncertain stock market,
lower-than-expected earnings and increasing PBGC fees have combined to jeopardize adequate
Sage Investment Group provides an excellent solution for your clients in these situations:
Meets plan specifications that guarantee benefits and benefit options earned by participants under a terminated DB plan.
2.Federal Accounting Standards Board (FASB) Settlements
Assumes plan benefit obligations for retirees and terminated vested participants .
3.Key Benefits for Plan Sponsors
ü Removes plan liabilities from their books
ü Allows the employer to provide an important employee benefit – with a minimum of cost and administration
ü Allows single aggregate payments to the plan trustee, with the trust responsible for all tax reporting and tax accounting associated with the payment
ü Provides institutional pricing
ü Participant Benefits
ü Guaranteed income for life or for a specified period
ü Ability to provide ongoing income for a joint annuitant
ü Multiple annuity payment options to meet a range of individual circumstances and goals
ü Monthly, quarterly, semiannual or annual benefit payment options
ü Optional cost-of-living adjustment, as permitted by the plan
Where we are
2500 E Foothill Blvd, Suite 115
Pasadena, CA 91107
Office Phone: 626-421-7685
Fax : 866-330-7655