Blog
January 19, 2018
The Best-Kept Secret For Professionals
Right on the heels of making a profit in your practice or company comes a retirement plan. The most common is a Simplified Employee Pension Plan more commonly known as a SEP. Companies with more than two or three employees usually opt for a 401(k) profit Sharing combination. Professionals and executives not satisfied with the government limitation of $59,000 on these plans can now save $200,000 or more a year.
This new pension plan looks like a “401(k) plus” account and is starting to get professionals as well as some wealthy business owners’ attention. This plan allows each professional or owner to say how much money they want to contribute to the plan. If you want to slow down or retire in ten years and want 2.5 million dollars, you can save $200,000 a year. If a owner or partner only wants to save $50,000 then that’s all they have to contribute. You pick the amount that fits your budget. Your employees must be included for just a couple percent of salary more than most companies already give them in the current 401(k)/Profit Sharing Plan.
Here is the best part; there doesn’t have to be any stock market risk to you personally. Your financial advisor invests all the money in a diversified investment portfolio. Your account will be credited with 5% interest whether the plan earns more or less than 5%.
These plans are custom designed by BEI and are certified in accordance with government regulations.
Call your BEI consultant for more information.
Author: Robert Gorelick, APA, Founder Benefit Equity Inc.