Retirement Plan Challenge

A client with a large, professional workforce had a 401(k) plan with no match, but a large profit sharing plan in place. Employees were receiving a larger-than-normal profit sharing contribution from the company, but were not seeing the benefit of such a bonus. Instead, employees were comparing the lack of a company match to the sizable match given by mega-companies in the area.

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Solution

Following disappointment and frustration by the employees, we suggested that the plan structure be changed significantly. First, we shifted a portion of the funds from the “bonus” into a significant and meaningful match. Second, the business owner then had us take into consideration a “performance or productivity” factor he had devised to enhance the match. Third, we kept the bonus, but at a lower level than in the past.

The combination of a meaningful match with the productivity/performance factor is quite unique and this outside-the-box thinking led to an amazing shift in employee morale, work ethic, engagement in the profitability of the company, and a new energy level and dynamic within the firm. For these reasons and many others, this firm has been recognized as one of the best companies in the area to work for in recent years.



Challenge

At the end of 2008, the market broke sharply and most asset classes dropped in value. Surprisingly, this included bonds. Money market rates dropped, as well, and corporate CFO's and treasurers were left with significant amounts of cash paying virtually no returns.

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Solution

We saw the need, found an opportunity in the market, and invested in a cash alternative. We are currently assisting corporations, business owners and individual investors with cash management alternatives. These accounts start with $50,000 and go up to $10 million.