Why 401(k) is a Smart Choice for Small Business - Mission to Grow: A Small Business Guide to Cash, Compliance, and the War for Talent - Episode # 93
For most employees, a 401k is a requirement, not just a perk. Here to help your business stay competitive is a 401k expert with over 20 years of experience. Joining the show this week is President of Workplace Savings at Vestwell, Richard Tatum!
Richard sits down with Mike Vannoy to dive into all things 401k. Richard shares tax credits employers can take advantage of, how to count an employee's student loan payments towards retirement, and why a 401k provides employees with more than just a retirement fund.
Takeaways:
- In the eyes of workers, 401k’s have evolved. What once used to be just a perk has become more of a brand in and of itself. As 85% of workers want a 401k, retirement plans are a crucial part of hiring and retaining talent.
- While 401k plans were once quite complex, managed accounts have made them much more streamlined. Rather than need to pick specific funds, employees only need to choose their risk tolerances and timelines.
- When 401k’s were managed on paper, many employees and employers found them cumbersome to participate in. Technology now allows for 401k’s to be managed digitally, offering a new level of convenience to employees and employers alike.
- A 401k offers tangible benefits to employees in the form of tax breaks and retirement funds, but can offer intangible benefits as well. By helping build your employees financial stability, they will be less stressed, and more engaged at work.
- Employees are changing jobs more frequently, and are seeing benefits at more companies than ever before. If you haven’t updated your 401k in a few years, reviewing and updating your plans will keep you competitive and help better retain employees.
- Comparing industry data for plans is easier than ever before. Most managed plan providers have access to data and can help you make an informed choice. Businesses should lean on their providers to provide the best plans possible.
- Employees shouldn’t need to choose between paying for student loans and saving for retirement, and with the SECURE act 2.0 they don't! Employers can add an option to 401k plans to match student loan payments into a retirement plan.
Quote of the Show:
- “It's just statistically proven that employer sponsored plans are better at getting people off the sidelines and saving for retirement.” - Richard Tatum
Links:
- LinkedIn: https://www.linkedin.com/in/richardmtatum/
- Company Website: http://vestwell.com/
Ways to Tune In:
- Spotify: https://open.spotify.com/show/2XThTdn7YC1lkAm0PgZUkj
- Apple Podcasts: https://podcasts.apple.com/us/podcast/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent/id1725890976
- Amazon Music: https://music.amazon.com/podcasts/328dddd0-3c4f-4b07-a0d3-13bdcb418486/mission-to-grow-a-small-business-guide-to-cash-compliance-and-the-war-for-talent?refMarker=null
- Audible: https://www.audible.com/pd/Mission-to-Grow-A-Small-Business-Guide-to-Cash-Compliance-and-the-War-for-Talent-Podcast/B0CS71KQFM?qid=1706208857&sr=1-1&ref_pageloadid=not_applicable&ref=a_search_c3_lProduct_1_1&pf_rd_p=83218cca-c308-412f-bfcf-90198b687a2f&pf_rd_r=A1ME8MBECSVZ6K4D7CNT&pageLoadId=QBtg12mqKsuZPLGY&creativeId=0d6f6720-f41c-457e-a42b-8c8dceb62f2c
- Podchaser: https://www.podchaser.com/podcasts/mission-to-grow-a-small-busine-5591006
Creators and Guests
Host
Mike Vannoy
Mike is a digital-first marketing executive with 25 years dedicated to helping HR companies thrive. As a board member of an AI software company and Chief Marketing Officer at Asure, he's been at the forefront of AI, HR compliance trends, and the changing demographics that shape today's marketplace. Under his leadership at Sales Engine Media, the company predominantly focused on the payroll, HR, and benefits industries, earning multiple spots on the Inc5000 list. Actively involved in multiple small businesses, Mike is a lifelong entrepreneur adept at navigating the changing workforce dynamics. He has held multiple executive roles at industry-leading HR firms, showcasing his expertise and leadership in the sector.
