Great Plan

Social Security Debate

With the looming threat to the solvency of Social Security, who will suffer the most?

The wealthy? It would seem as though the wealthy will not be adversely affected by reduced Social Security benefits. Those under or just above the poverty line? It would also seem as though in very least, no matter what kind of Social Security reform takes place, those in this category should continue to have benefits.

The middle-class? It seems like the middle class will likely bear most of the pain, because although they need the benefit, they'll probably be asked to take less or work much longer to get it.

Pensions, anyone?

What happened to working for a company for 30 years, grabbing a gold watch and a pension, then heading off to retirement? It’s becoming non-existent. With the aforementioned Social Security issue and remarkably few companies handing out pensions, the need for excellence in a defined contribution plan is a must. The education program of the plan must clearly outline that this may be the only resource to pull from in retirement.

Competitive Advantage

The most valuable resource in virtually all organizations is the people. When attracting top talent, a good retirement plan may very well be the deciding factor in either landing that person or watching them head to the competition with a better plan.

Self Interest

In most retirement plans, the individuals wanting to defer the largest percentage happen to be the executives and the highly-compensated. Many plans become top-heavy because the rest of the workforce may be deferring a low percentage of their pay, restricting what the executives and highly compensated individuals can contribute. Among other solutions, a compelling education program should mobilize many participants to save more and diversify, thus allowing all participants (including executives and highly compensated employees) to save more.

Barrow & Powers
Financial Services, Inc
An Independent Registered Investment Advisor

401k Plan Consultants
401k Fiduciary Assistance
401k Fee Review & Analysis
401k Plan Design
Investment Committee Oversight
Employee Education Programs

256 N. Kentucky
Lakeland, FL 33801
(888) 575-3955 (toll free)
(863) 802-0333 (phone)
(863) 688-1306 (fax)