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Lowest Effort Option To Set Up Retirement Benefits

 
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Old 05-18-2019, 08:11 PM   #1
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Lowest Effort Option To Set Up Retirement Benefits


I've promised retirement benefits to my employees and not delivered. Mostly just because I'm too lazy to set it up. I have 2 employees plus myself (technically an employee).

Can anyone point me in a good direction?
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Old 05-18-2019, 08:17 PM   #2
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Re: Lowest Effort Option To Set Up Retirement Benefits


I dunno, but this looks like something to investigate with your CPA

https://www.cnbc.com/2017/07/21/ever...o-excuses.html

https://www.fidelity.com/viewpoints/...small-business

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Old 05-19-2019, 07:45 AM   #3
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Re: Lowest Effort Option To Set Up Retirement Benefits


Look in to a SIMPLE IRA, the simple is a very specific IRA and would suit a small business well, as the fees are very low, so most of your contribution goes to the employees.

A SIMPLE IRA is an employer-sponsored retirement plan offered within small businesses that have 100 or fewer employees. SIMPLE is an acronym for savings incentive match for employees. Small businesses may favor SIMPLE IRAs because they are a less expensive and less complicated alternative to a 401(k) plan.
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Old 05-19-2019, 09:12 AM   #4
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Re: Lowest Effort Option To Set Up Retirement Benefits


When setting up this last project, needed direct deposit payment system and a 401K option, among other things.

Used a local HR outfit called Human Capital LLC, and the 401K was done through Slavic401K.

https://www.human-capital.com/

https://slavic401k.com/

Least painful way I know of. Too much to learn for an old fart like me.

Perhaps there are similar outfits local to you.
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Old 05-19-2019, 09:42 AM   #5
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Re: Lowest Effort Option To Set Up Retirement Benefits


I set up a simple IRA with TD Ameritrade. Very easy to set up. Just fill out a couple of forms and your done.

Not sure what the contribution guidelines are for employees but they have a choice how much they want to contribute. You have to match their contribution up to 3% of their salary( i believe).

I'ts a good way for me to contribute and have it tax deductible. I was able to contribute 15,500 max this year plus the matching 3 percent. Employees chose not to participate which is fine with me.
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Old 05-19-2019, 09:28 PM   #6
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Re: Lowest Effort Option To Set Up Retirement Benefits


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Originally Posted by natural1 View Post
Employees chose not to participate which is fine with me.


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Old 05-20-2019, 01:06 PM   #7
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Re: Lowest Effort Option To Set Up Retirement Benefits


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I don't know, you can call me a fool if you want but I hardly think my IRA is keeping up with inflation for the next 30 Years. It is simply the easiest way to get tax-free money is the only reason I invest in it.

Rent houses are 8 to 10% net for me. I'd rather have the money paid to me directly and I will decide how I would do it. Then again that's why I don't work for an employer who would make that decision for me.

Rental property also increases in value over time and almost all markets. Every rent house I have ever dealt with I made money on when I sold it or got an appraisal.

I imagine my retirement will be just fine.

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Old 05-20-2019, 01:07 PM   #8
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Re: Lowest Effort Option To Set Up Retirement Benefits


It's certainly better than waiting on Social Security they won't be there. LOL

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Old 05-20-2019, 01:55 PM   #9
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Re: Lowest Effort Option To Set Up Retirement Benefits


Quote:
Originally Posted by Jaws View Post
I don't know, you can call me a fool if you want but I hardly think my IRA is keeping up with inflation for the next 30 Years. It is simply the easiest way to get tax-free money is the only reason I invest in it.

Rent houses are 8 to 10% net for me. I'd rather have the money paid to me directly and I will decide how I would do it. Then again that's why I don't work for an employer who would make that decision for me.

Rental property also increases in value over time and almost all markets. Every rent house I have ever dealt with I made money on when I sold it or got an appraisal.

I imagine my retirement will be just fine.

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I couldn't agree more but that 3% match referenced above is a 100% ROI that first year for the person receiving the match... where it goes from there is another issue, but if left untouched over the years in the average MF, 8-10% is easily attainable in addition to the initial 100% compounded...

But doing real estate and rental(s) myself, I totally get where you're coming from...

But if I also had someone willing to match what I put into an investment, at no cost to me, I'd indeed be a fool not to take advantage of it...
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Old 05-20-2019, 02:42 PM   #10
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Re: Lowest Effort Option To Set Up Retirement Benefits


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Originally Posted by KAP View Post
I couldn't agree more but that 3% match referenced above is a 100% ROI that first year for the person receiving the match... where it goes from there is another issue, but if left untouched over the years in the average MF, 8-10% is easily attainable in addition to the initial 100% compounded...



But doing real estate and rental(s) myself, I totally get where you're coming from...



But if I also had someone willing to match what I put into an investment, at no cost to me, I'd indeed be a fool not to take advantage of it...
My point is if the matches 2500 bucks just give the dude 2500 bucks. LOL. Things like that or why I cant be an employee.


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Old 05-20-2019, 02:46 PM   #11
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Re: Lowest Effort Option To Set Up Retirement Benefits


Quote:
Originally Posted by Jaws View Post
I don't know, you can call me a fool if you want but I hardly think my IRA is keeping up with inflation for the next 30 Years. It is simply the easiest way to get tax-free money is the only reason I invest in it.

Rent houses are 8 to 10% net for me. I'd rather have the money paid to me directly and I will decide how I would do it. Then again that's why I don't work for an employer who would make that decision for me.

Rental property also increases in value over time and almost all markets. Every rent house I have ever dealt with I made money on when I sold it or got an appraisal.

I imagine my retirement will be just fine.

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He said that he matches employee contributions and they choose not to contribute

They are fools for turning down free money

From what I read from your posts over the last of couple years you are a pretty savvy businessman that is smart with his business and his money... i wouldnt call you a fool for not contributing to an IRA since you have other investment sources.

I’m sure his employees are not rolling in investment properties. But like most Americans they are not contributing anything to their employer sponsored retirement plans and turning down free money and will probably cry poor when they are of age to retire and they are broke


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Old 05-20-2019, 02:48 PM   #12
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Re: Lowest Effort Option To Set Up Retirement Benefits


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Originally Posted by Windycity View Post
He said that he matches employee contributions and the choose not to contribute

They are fools for turning down free money

From what I read from your posts over the last of couple years you are a pretty savvy businessman that is smart with his business and his money... i wouldnt call you a fool for not contributing to an IRA since you have other investment sources.

I’m sure his employees are not rolling in investment properties. But like most Americans they are not contributing anything to their employer sponsored retirement plans and turning down free money and will probably cry poor when they are of age to retire and they are broke


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I can agree with that, I personally would rather just have the 2500 bucks or whatever it is. That's what I am going to do with our hands. Superintendents already have a larger bonus to cover for that at Christmas

They can handle their own retirement just as I do. I started buying rent houses when I was a hand. Or 1 anyway, I was 25 when I quit working for other people

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Old 05-20-2019, 02:49 PM   #13
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Re: Lowest Effort Option To Set Up Retirement Benefits


From what I could see somebody can have half a million dollars iras and they are going to have a pretty crappy retirement. That's why I bring it up.

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Old 05-20-2019, 02:51 PM   #14
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Re: Lowest Effort Option To Set Up Retirement Benefits


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My point is if the matches 2500 bucks just give the dude 2500 bucks. LOL. Things like that or why I cant be an employee.


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That would simply be considered wages or a bonus and defeats the whole purpose of a “retirement plan“ with the tax benefits of both the employer and employee and investment growth opportunity within it to grow for the employee


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Old 05-20-2019, 02:59 PM   #15
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Re: Lowest Effort Option To Set Up Retirement Benefits


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That would simply be considered wages or a bonus and defeats the whole purpose of a “retirement plan“ with the tax benefits of both the employer and employee and investment growth opportunity within it to grow for the employee


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That makes sense, not the way my mind works though.

Golden, I use Edward Jones. That's who I would recommend to my hands if they wanted to have their own retirement program, what they do with their bonuses their business. The older superintendent probably buys bigger tires for his four-wheel drive off-road vehicle, the younger one is already on his second home, rented the first one out for about a $200 a month net profit.

I have some pride in knowing I probably had something to do with that. But that's his accomplishment and his decision. The 15 grand he probably has in that house will make him exponentially more money in my opinion and if he had put $15,000 in an Ira, he's already nettng 7%

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