George and Brenda have sharply different careers paths. He owns a software company that employs over 50 people. She was recently hired as CEO of a mid-sized marketing firm, which is the second company she has led in as many decades.
Since they’re both in their forties, they want to get the most out of their employee retirement plans while they still can. When they come to IFP, our Integrated 401(k) model helps George as a business owner and Brenda as an executive to do what works best for their household.
Brenda’s personal 401(k) contains assets that she already rolled over from her previous position at another firm. She has contributed to a 401(k) plan ever since joining her old firm over two decades ago. But Brenda only escalated her contribution rate once, when taking her current job, and she hasn’t adjusted her 401(k) asset allocation at all.
She believes she could have earned greater returns by looking deeper at her employee retirement plan earlier, but she was busy climbing the corporate ladder so she never got around to evaluating or changing her investment options. George, on the other hand, has adjusted his personal 401(k) repeatedly and encourages his employees to do the same with the company plan he provides through a large financial institution. He’s tried to stay current on ERISA rules and consult regularly with his plan administrator, but those duties often feel overwhelming since he’s also running his own business.
Lately employees have asked George for greater education on retirement planning issues like 401(k) withdrawals and IRA rollovers. Some employees have even questioned the competitiveness of the 401(k) plan he offers. George lacks all the answers himself, he would love more guidance than his plan sponsor provides, and he knows some talented employees have begun to seek better jobs.
IFP advisors will talk George and Brenda through these concerns, we can show them how their professional decisions and income streams can bolster their respective retirement plans, and we can help address their 401(k) problems. Our approach to integration can help put their family in a healthy financial position as retirement nears.