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Corporate Plans
Corporate Plans
A popular way to save for retirement is to contribute to a retirement plan offered by some employers. Companies use these plans as a way to retain employees and they often match your contributions with their money to a certain percentage. They are among the many financial vehicles endorsed by the Government.
401(k) Plans 403(b) Plans SEP IRA SIMPLE IRA KEOGH PLANS
If you are already participating in one of these plans you may be familiar with their outline and terms. However, there are several points to remember:
 The danger of investing all your money in your company's stock exposes you to certain risks. (Many Enron employees had their money invested exclusively in Enron stocks and lost all their savings when the company collapsed).
Some plans allow you to roll over a portion all of your money into your own IRA while you are still working at the company.
When you leave the company you may want to take control of your investments rather than leaving it with your old employer
You may want to invest outside of the plan's limited choices of funds to be more diversified and to enhance your chance of greater returns. (Companies prefer to offer only conservative funds to reduce their exposure to possible law suits that may come from risky investments).
Many corporations also offer other options for their employees:
Split Dollar Insurance Key Employee Benefit Plans Executive Bonus Plans Pension and Profit Sharing Plans Deferred Compensation Plans SEP, ESOP etc., etc., and their many variations
Plans can differ greatly and the space available here won't allow us to discuss all the possible variations. But if you are considering taking control of your own money, we offer to examine your current plan to see if there is a better alternative available for you.
See related subjects under COMPANIES and under Circle of Financial Health > Plan > EMPLOYMENT AND SMALL BUSINESS.
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