The Fix: Retirement Plan that best fits their Business

Situation:

The Client: A young family where the husband has a rapidly growing business (both in terms of employees and revenue). They are in the accumulation stage of their life with a lot of life transitions happening between work and family. They are trying to figure out how to best manage their finite resources.

Planning:

The business has been very successful these past few years. They have been doing all they can to manage the growth of both their family and business. They came to us wanting to know how much and where to save for kid’s education, for their shorter-term personal goals, and for both their own and their employee’s retirement.

They went through The Helmstar Group planning process and we uncovered the following variables:

  • What their overall life and family goals are
  • The type of entity and how the business is taxed
  • How much revenue the business was generating and was expected to generate
  • How many employees the business had and who is actually using the current retirement plan
  • We performed a deep dive into the various account portfolios where they were saving into

Key Results:

The Helmstar Group analyzed their overall situation, including their goals, desires, and concerns. It provided the family with the following clarifications and specific recommendations:

  • The business needed to open up a profit sharing 401(k) and stop using SIMPLE IRAs
  • Helped them select the right Administrator for the plan
  • Provided a recommendation to set up adequate buy-sell agreements
  • Gave them a savings plan for where and how much to save annually for kid’s education expenses
  • Provided a tax and cost-effective investment strategy for their savings plan

Impact:

The clients have renewed enthusiasm for their path ahead, knowing the plan and how to achieve it. They feel good knowing they can help their current and future children with their education expenses. They also feel relieved knowing they have selected the best retirement plan to take care of both themselves and their employees. They can now take the time and emotional burden they were carrying about these decisions and put it towards living the meaningful life they choose.

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