Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Seven Questions to Ask When Planning for Retirement

Posted by: Rod Kurtz on October 13, 2009

As an employer, you may wish to establish one or more retirement plans, which can provide significant benefits for you and your employees. There are many different types of retirement plans; however, choosing the right one for your situation is a critical decision. You want a plan that will meet both your goals as the employer and the needs of any employees. In addition, it is important to balance the cost of establishing and maintaining a plan against the potential benefits.

Retirement plans are usually IRA-based (SEPs and SIMPLE IRAs) or "qualified&quo (401(k)s, profit-sharing, and defined benefit). Qualified plans are generally more complicated and expensive to maintain than IRA-based plans because they have to comply with specific rules and regulations in order to maintain their tax-deferred status.

You will need to define your goals clearly before attempting to choose a plan. Ask yourself the following questions about what you want the plan to do:

1. To maximize the amount you can save for your own retirement?

2. A plan funded by employer contributions? By employee contributions? Both?

3. A plan that allows you and your employees to make pretax and/or Roth contributions?

4. The ability to structure the vesting (ownership) schedule for employer contribution?

5. The flexibility to skip employer contributions in some years?

6. A plan with the lowest cost? Easiest administration?

7. The ability to borrow against your account balance?

The answers to these questions can help guide you to the plan(s) most appropriate for your business.

Leslie Thompson, CFA, CDFA, CPA
Spectrum Management Group

Reader Comments

Jack Brosnan

February 15, 2010 1:20 PM

This is a wonderful opinion. The things mentioned are unanimous and needs to be appreciated by everyone.
Jack brosnan
caravans for sale

Post a comment



Want to improve the way you run your business? Entrepreneurs, academics, and consultants from diverse industries offer practical advice on a variety of topics each business day.

To submit a tip for consideration, first check our archive of previous tips to make sure you're not repeating a tip someone has already contributed. Then send the tip to Small Business channel contributor Michelle Dammon Loyalka. Because of the volume of material she receives, she may not respond to each individual.

BW Mall - Sponsored Links

Buy a link now!