Benefits for employees

Hi, I'm in the process of looking for a health insurance provider for the company and a retirement fund for a long term employee. I hear too often about insurance policies not covering things that happen and want to be sure we make a wise decision. Also i have zero experience with retirement plans. We are thinking a 401k. I have gained and shared a lot of advice on here over the years. I would love to hear from anyone who already has some experience with these things as i do not. Yet! lol Thanks!>>>

Willie,

Health insurance regs vary from state to state and it's hard to give good advice. Talk to one of the larger full service commercial insurance agents in your area. They will most likely represent several of the better plan providers in your area.

401K's can be largely set up as you like, with the help of a financial planner. I would suggest that you talk to local business men in your area to see who is satisfied with their service. Once you get into that process, I could try to answer more specific question.

I have what's called a Safe Harbor 401K with a profit sharing option. It gives you as the owner the opportunity to max out your own contributions, regardless of employee participation, because you give them a specific contribution, whether they put in their own funds or not. a regular 401K limits you based on a complex set of calculations that measure your own contributions to those of your employees. There is no perfect plan. One way or the other, the government will see to that YOU are not the only beneficiary.>>>

Prior to the 401k era, the only thing available to us was the defined contribution and profit share scenarios. Initially we had attorneys set up the program for our employees in the Corporation, but as the pension laws were continously changed, the life insurance companies who we dealt with, were able to guide us on the correct path at no charge. I am not familiar w/ the 401k s, however, please note that the defined contribution programs can be a real problem. When business is good, the program is fine. However, w/ a change in the economy, it can break you. I suspect that is the basic problem w/ GM. I suggest you opt for a profit sharing plan, whereby, when your business is profitable, there are funds immediately available to share w/ your employees. That is the problem w/ governmental workers - their contracts have been unfunded liabilities for years, for the politicians dare not tax the public to make their ludicrous retirement programs solvent and sustainable.>>>