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Expenses and Investment Returns - Most wonder where to start. The simple answer is, expenses and investment returns. It will be most difficult to have a very successful plan with high expenses or poor investment returns. Your advisor should be able to direct you to the optimal combination of these two items. Most expenses will come in the form of plan administration and management fees. Investment results should be well documented and therefore easy to check. Focus on the long-term results. Too many people try to find out what the best performing fund was last year. It turns out that 3, 5 and 10 year results are a much safer guide for investment selection. Plan Type - Since there are so many retirement/pension plan types to choose from, it can be very hard to know which one is the best fit. The best approach is to lay out your goals. For example, do you want your retirement plan to favor employer contributions or employee salary deferral contributions? Do you want to have a vesting schedule? Each retirement plan type has a different way of handling these issues and getting the plan type right can be very beneficial to all involved.
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Setting
up or replacing an existing pension plan for your business can be daunting.
There are many choices between plan types and many decisions to make even
after the plan type is chosen.