Retirement Savings for Small Business Owners: The Power of Defined Benefit Pension Plans

Описание: Ken Hargreaves, a certified financial planner, explains the shift from traditional pension plans to employee-driven retirement savings like the 401k, highlighting the decline of pension plan participation since the 1980s.

He introduces Defined Benefit Pension Plans as a viable retirement saving option for small business owners, explaining their features, benefits, and potential pitfalls.

By contrasting defined benefit plans with defined contribution plans, he emphasizes the higher contribution limits and tax-saving opportunities of the former, particularly for high-income service professionals.

Hargreaves also discusses possible challenges such as plan overfunding or underfunding and administrative costs. He advises consulting with tax professionals and certified financial planners to tailor the plan to individual business needs.

00:00 The Evolution of Retirement Planning in America
00:22 The Shift from Pensions to Personal Responsibility
00:50 Meet Ken Hargreaves: Your Guide to Defined Benefit Pension Plans
01:02 Understanding Defined Benefit Pension Plans
02:10 Advantages and High Contribution Limits of Defined Benefit Plans
02:55 Challenges and Considerations of Defined Benefit Plans
03:41 Conclusion: Weighing the Pros and Cons for Small Business Owners

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