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This should be the end of 401(k)s

The Conventional Wisdom (CW):

The conventional wisdom when you set up your 401(k) for your employees was that the expense of doing a retirement plan would pay for itself with increased ability to hire and retain good people.

Since almost every business out there has a 401(k) most businesses think that is the way to go. No one ever told you there is a much better plan for you and your employees.

The people that helped you set up that very complicated labor intense and expensive 401(k) were 401(k) “Experts”. They were vendor trained (An industry that makes money complicating simple things) to sell you a 401(k). They were never trained to give you any other options. Most were so well trained by the vendor that they didn’t even know there were other options.

Now you’re stuck with a high maintenance cost, cash consuming, liability creating monster that has cost you and your employees thousands of dollars. Because of 404c compliance rules you could be libel for your employee loses.

Common Sense: The common sense approach would be to ask yourself these questions “Why does trying give my employees’ help in setting up a retirement plan have to cost me so much money and time?” or “If my employees are making their own investment decisions why should I be responsible for their losses?”

The common sense answer is a Self Directed Retire Plan (SDRP). A SDRP is so simple no “Expert” is needed. There are no requirements from ERISA or the IRS. You don’t need a Plan Administrator, a Bookkeeper, Financial Advisor, CPA or a Third Party Administrator. You do not have to do 5500 filing or any filing with the IRS.

If you are matching your employees’ contributions you can continue if you wish or pay performance bonuses that are not discriminatory.

Since you are now offering your employees a new option like a safe investment with 8% guaranteed interest rate on all their contributions they can plan their retirement easily because they will no what their return will be.

If you would like to know more about the newest way to have an inexpensive, low maintenance retirement plan without any loss liability please contact me.

Jim Warr ~ Warr Financial Group