Gary Allen on Business, Sunday, May 22, 2016 – Podcast Now Available

Business Alert!

California Employers Facing State Mandated Retirement Program

So far it has remained under the radar, but a major new State government program is rapidly heading towards a collision course with private employers in California. The California Secure Choice Act is a program that states private employers must offer a retirement plan to their employees or the employer will be forced to participate in a new retirement program mandated by the State of California.

California employers with five or more employees must comply with the mandate or face heavy penalties if they do not. Critics of the state program, including myself, have identified numerous issues small and large that plague the offering. My personal opinion is employers face significant potential risk (based on the current version of the regulations (5/22/2016). Further, the program in my opinion, falls short on providing an optimal solution for employees as well. The program design is flawed and incomplete leaving many questions unanswered. 

Currently, Secure Choice is on track for a 2017 debut, but could slip into 2018. However, make no mistake about it, this program is coming soon. And even if you do offer a retirement plan to your employees that may not exempt you from the mandate. The State is working on rules that would mandate coverage for part-time or contract workers that are excluded from your existing plan.  

There is a much simpler solution for employers to avoid the California Secure Choice Act. Employers can offer a payroll deduction IRA program to their employees without cost or personal liability to the business or its owners. Payroll deduction IRAs have been around for decades and work very well for employers of any size. You can provide your employees with a simple and effective way to save for retirement without cost to you.

I am very concerned that the California Secure Choice Savings Program will turn out to be the equivalent of the Affordable Care Act (ACA) for retirement plans. You can avoid the headaches and the uncertainty by offering a private solution today. 

You can listen to more about the California Secure Choice Act in segments three and four of my show this week.

In segments one and two of the program, I discuss the flaw of retirement planning that focuses on building wealth instead of a stream of income for retirement.   

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Gary Allen on Business – Sunday, November 22, 2015; PODCAST NOW AVAILABLE

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Gary Allen on Business – Sunday, November 22, 2015

Rising Interest Rates, The Paris Attacks and Solving America’s Retirement Savings Crisis…

On the program this week, we cover a wide range of important topics. In the first segment I spend time talking about the risks of chasing higher yields and what could happen to you when interest rates start to rise. 

In segment two, I spend the majority of the time talking about the recent terrorist events that have happened in Paris and other places. In particular, I emphasize the small impact these terrible events will have in the long run on a broadly and deeply diversified portfolio. While the events are tragic, they do not change the overall landscape for disciplined investors. 

In segments three and four of the program, I discuss the retirement savings crisis in America and one potential solution that, in my opinion, has not been used often enough. Payroll deduction IRA programs have been around for a very long time. However, very few companies have used them and that should change. 

If you own or manage a company without a retirement plan, a payroll deduction IRA is something for you to consider. If you are an employee at a company without a retirement plan, you should have your employer take a closer look at a payroll deduction IRA.

Access to a retirement plan at work is a key component of solving the retirement savings crisis in this country. Find out why a payroll deduction IRA can make a difference in so many lives.

I hope you enjoy this week’s show and thank you for making it part of your day! Have a question? Just drop me a note at gallen@prudentllc.com

– Gary

Happy Thanksgiving!

From my family to yours… I hope that each of you have a wonderful Thanksgiving with family and friends. There is so much for all of us to be thankful for. This is a holiday about gratitude, about family and about possibility. It brings people together to not only celebrate the end of the harvest, but to look one in another in the eye and share something magical. I hope that each of you can celebrate something magical with your friends and family.

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Gary Allen on Business, Sunday, November 15, 2015 – PODCAST NOW AVAILABLE

Payroll Deduction IRAForget MyRA… The Good Old Payroll Deduction IRA is the ANSWER

The Federal Government with much fan fair officially launched its new MyRA program this past week. It is their solution for people that do not have access to a retirement plan at their place of employment.

Access to a retirement plan at work is one of the largest problems facing workers today. Approximately half of the workforce does not have access to a retirement savings vehicle through their employer. However, the MyRA program is, in my opinion, fatally flawed by its only investment choice.

The low-return MyRA investment option will not provide a reasonable long-term rate of return that will help participants successfully retire. By focusing on a guaranteed, no chance of loss, return, the program fails to address the real issue of generating enough wealth over time to produce retirement income.

A much better option, in my opinion, is a payroll deduction IRA program that can be set up either as a traditional or ROTH IRA gives employees a much better chance of meeting their future retirement income  needs.

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Gary can help you set up a Payroll Deduction IRA program in just a few minutes. 

Gary’s Offer to Help

Payroll Deduction IRA programs can provide workers with a very good option to save for retirement. For employers, Payroll Deduction IRA programs are simple, easy and usually come with no cost.

If you are an employer without a retirement plan, Gary will help you understand why a payroll deduction IRA is a great solution.

If you are an employee at a company without a retirement plan, Gary can help you get a program started as well.

You can contact Gary at gallen@knbr.com or gallen@prudentllc.com

The program this week:

Segment One – Crowdsourcing for the masses

Segment Two – MyRA and Payroll Deduction IRA programs

Segment Three – MyRA and Payroll Deduction IRA programs

Segment Four – Payroll Deduction IRA – Gary’s help

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