In the previous episode, we discussed The 401k Blueprint: From Plan Design to Implementation.
Today, in Episode 50 of The 3 Wins Podcast, Legacy’s Matt Joines and I discuss the five primary benefits of 401k plans. We explore how these retirement plans can benefit both employers and employees, touching on tax advantages, employee retention, competitive edge in the labor market, productivity, and financial wellness.
Let’s dive in! 👇
Today’s episode is brought to you by our new book, Collaboration Effect on Profit: Overcoming Founder’s Syndrome to Achieve Sustainable Success—now available on Audible.
Key Takeaways from Episode 50
1. Tax Advantages [00:01:30]
[00:01:30] 401k plans offer tax benefits for both employers and employees
[00:01:53] Options include pre-tax and Roth contributions
[00:03:00] Employer contributions are tax-deductible
2. Attraction and Retention of Top Employees [00:03:26]
[00:03:26] Generous 401k benefits can help attract and retain talented employees
[00:04:10] Employers can design matches to encourage employee participation
3. Competitive Edge in the Labor Market [00:07:09]
[00:07:18] Strong 401k plans can distinguish a company from competitors
[00:07:39] Helps in attracting and retaining quality employees
4. Employee Productivity and Satisfaction [00:08:54]
[00:09:00] Financial security through 401k plans can lead to increased focus and productivity
[00:09:34] Addresses employee concerns about retirement readiness
5. Financial Wellness [00:11:04]
[00:11:05] 401k plans contribute to overall financial wellness of employees
[00:11:27] Helps employees work toward financial independence
Additional Notes
[00:02:15] Discussion on the impact of recent legislation (SECURE 2.0) on 401k plans
[00:02:37] Importance of reviewing and updating plan designs regularly
[00:04:10] Strategies for stretching employer contributions to maximize benefits
[00:12:41] Consideration of generational differences in the workforce and their impact on retirement planning
Upcoming Episode Teaser
[00:14:25] Russ and Matt tease their next episode, which will cover the top five mistakes companies make with their 401(k) plans
About the Hosts
Russ Clemmer: Host of The 3 Wins Podcast and CEO of Legacy Advisory Partners: https://www.linkedin.com/in/russclemmer/
Matt Joines: Certified Financial Planner
https://www.linkedin.com/in/matthewjoines/
Additional Resources
Check out our new book, Collaboration Effect on Profit: Overcoming Founder’s Syndrome to Achieve Sustainable Success, here: https://legacyadvisorypartners.com/collaboration-effect-book/
Download our FREE whitepaper, “The 3 Wins: How to Unleash the Collaboration Effect on Profit in Your Company,” here: https://legacyadvisorypartners.com/3-wins-framework
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Where to Find The 3 Wins Podcast
YouTube (Legacy Advisory Partners Channel)
The 3 Wins Podcast is brought to you by Legacy Advisory Partners.
Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer member FINRA/SIPC. Advisory services through Investment Advisor Representatives of Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Legacy Advisory Partners are not affiliated. Perpetuate Capital is not affiliated with Cambridge or Legacy Advisory Partners.
🎙️E50: The Top 5 Reasons Companies Win With Well-Designed 401k Plans