It's the Way We Have Always Done It

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Have you ever heard someone answer the question "why do you do it that way?" and the response is "it’s the way we’ve always done it"? What they are really saying is, "I don’t know why we do it that way." They have never put any thought into it and are just going along with the status quo.

Why do you have the retirement plan that you have? If you answer is " it’s the plan we have always had," then it’s time for a plan review. When was the last time you examined your plan? Does your current plan meet your needs? Is it the best plan for you or have you settled for going along with the status quo? Now is the time to review your plan to make sure it is a tool for reaching your organization’s goals. Ask yourself the following:

What are the strengths and weaknesses of your plan? Are there things about your plan that you don’t like and wish you could change? Are there things about your plan that you really like and wish you could enhance? There are many new plan design features brought about by tax law changes. One may offer just the things you’re looking for.

Does your current plan fit into your vision of the future? There is no doubt that when your plan was first installed it fit the needs of your business. Has your business changed? It probably has. It needs to keep up with changes in the market, and your plan needs to change to keep up with your business.

What are your competitors offering? If you’re competing for skilled workers, then you need to have a competitive benefits plan. If you don’t your competitors will lure away your best workers and you will find it difficult to attract new ones.

Have the needs of your key employees changed? If your owners and other key employees are getting closer to retirement, now may be the time to get more aggressive about funding their retirement. There are plan designs that will let you do just that.

What do you want out of your plan? This is the most important question you can ask yourself. If you know what your goals are you can design a plan to meet those goals.

We can help you examine your plan and select the best possible choice for your business. Call us at (860) 313-5470 or contact us to talk to our retirement plan specialists.