At the Farmington Regional Chamber of Commerce Luncheon, held at the Centene Center on August 18, speakers Paul Meinsen and Lisa Sumpter gave a presentation on small business pension plans.
Meinsen is a Certified Financial Planner and Financial Advisor to Edward Jones, whose office is at 108 W. Columbia St. Sumpter is also a certified financial planner and Vice President of First State Financial Management located at 201 E. Columbia St.
Meinsen started his part of the presentation by talking about the reasons for starting a business and how it affects retirement savings.
“The reasons for starting a business are as diverse as the types of businesses out there,” he said. “A business can be started out of a passion or a skill that someone has that they want to turn a profit on. Perhaps you see a need in the community that is not being met by others. One may have an opportunity that could not be turned down. You can start a small business and just sell it later. There are many other reasons.
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“According to my observations, many people can start a business and grow the business, and then they encounter problems unrelated to their dream of a business — whether it’s supply issues and shipping, hiring and retention, regulations and taxes, social security, disability insurance, etc.
“It can be very easy to focus on the day-to-day issues and easily overlook something very important. That’s the future. I’m not really talking about the future of your company. What I’m talking about Today is your personal financial future and that of your family. Much of that future depends on what you do now.”
During her portion of the presentation, Sumpter spoke about some of the retirement plans available to small businesses – traditional Roth/IRA accounts, SEP IRA, Simple IRA, 401K and Defined Benefit, as well as other options.
Meinsen closed the presentation with three reasons to consider these small business retirement options.
“First, it helps recruit and retain employees,” he said. “When I speak to business owners of all types, the main problem they face is finding, hiring, training and retaining employees. They’re just not small businesses. Southwest Airlines has a pilot shortage. At Edward Jones, they say that if we don’t talk to our customers, our competitors will. If you don’t have the same for employees, there are other employers who would be more than willing to take your good ones out of your hands.
“Second, it may be a tax deduction. You’re having a good year, and Uncle Sam wants a small share of your deeds. They may be able to put money into a with-profits pension plan.”
As for number three, Meinsen suggested that the participants should think about their future.
“It’s so easy to forget that the future is coming,” he said. “All I have to do is ask someone like Larry Joseph and that future is already here, do you know what I’m saying? We all experience that. ‘I’ll take care of that tomorrow.'”
Mark Marberry is a reporter for the Farmington Press and the Daily Journal. He can be reached at 573-518-3629 or at email@example.com