For many people, retirement seems like a long way off. But the truth is, the sooner you start saving for retirement, the better. That's why we're celebrating National 401k Day. This day is dedicated to raising awareness about the importance of saving for retirement and the challenges that come with it—particularly for those in the cannabis industry.
Benefits of Offering a Retirement Plan to Your Employees
There are many benefits to offering your employees the ability to save for retirement through a workplace retirement savings plan. First and foremost, it helps attract and retain top talent. In today's competitive job market, employees are looking for employers who offer benefits that will help them secure their financial future. By offering a retirement savings plan, you can show your employees that you are committed to helping them meet their long-term financial goals.
Second, offering a retirement savings plan can help improve employee productivity and engagement. Employees who feel financially secure are less stressed and more engaged in their work. This can lead to increased productivity as well as increased loyalty and satisfaction.
And finally, offering a retirement savings plan can help improve your bottom line by reducing turnover costs, improving employee retention rates, and potential tax breaks. It costs far less money to keep existing employees than it does to constantly be recruiting and training new ones. So, if you want to save money in the long run, offering a retirement savings plan is one of the best ways to do it.
The Challenges of Saving for Retirement in the Cannabis Industry
The cannabis industry presents a unique set of challenges when it comes to saving for retirement. First and foremost, because marijuana is still illegal at the federal level, most banks and financial institutions are unwilling to work with cannabis businesses. This lack of access to traditional banking services makes it difficult for cannabis businesses to set up retirement plans like 401ks.
Additionally, because the cannabis industry is still relatively new, there are very few established businesses in the space. This means that there are fewer options for employees when it comes to finding a job with a company that offers a retirement plan. And fewer options for employers to offer to their employees.
Are There Options to Help My Business
Fortunately, there are solutions to these challenges. Multiple employer 401(k) plans (MEPs) offer an opportunity for small businesses in the cannabis industry to band together and offer their employees a retirement savings plan. MEPs are turnkey and scalable, which makes them an ideal solution for businesses that don't have the time or resources to set up their own 401k plan.
This means that you don't have to worry about managing multiple vendor relationships or complying with multiple sets of regulations. As an employer, all you need to do is choose the right provider and set up your account. Then you can focus on running your business while your provider takes care of the rest.
The Benefits of a MEP with Teamployer
As an Employer:
- No minimum balance is required (great for small and mid-sized businesses)
- Teamployer conducts the yearly audit, so you do not have to (around a $10,000 cost savings)
- Teamployer employee fees are based on employees who hold a balance, not the total employee count
- Outsourcing of duties and responsibilities
- Leverage the plan’s scale by pooling resources to get investment qualifications based on total MEP assets
- Fee breakpoints are based on total MEP assets/participant (bring your friends!)
- ACH automatically pulls contributions to your plan instead of having to manually wire funds
As an Employee:
- A fiduciary advisor to help them with their financial needs
- A dedicated support team to help with any issues
- Participant education and advice both online and with a dedicated team
- A managed account solution that provides participants with a personalized investment allocation
- A foundational financial planning program for all participants
In addition, fiduciary advisors can help you navigate the complex world of retirement planning. Fiduciary advisors are legally bound to act in your best interest, which means they'll help you find the best retirement plan for your needs—even if that means recommending a product or service that they don't offer themselves.
Finally, participant education and advice are essential for ensuring that your employees are making the most of their retirement savings plan. Our resources and dedicated support teams can help your employees understand the basics of saving for retirement and make informed decisions about how to allocate their assets.
Your Fiduciary Advisor: Intellicents
intellicents offers a full technology suite and services for 401k and retirement planning, including investment advisory and management fiduciary protection. As a 3(21) and 3(38) advisor, intellicents provides a dedicated support team, web and app-based interaction, no annual audit, and a plan that enables cannabis companies to offer a scalable, and compliant solution for their employees. intellicents investment solutions are specifically tailored to meet the needs of the cannabis industry, providing a compliance-focused solution that helps companies attract and retain employees. With intellicents, you can rest assured that your 401k and retirement planning are in good hands.
Conclusion
Saving for retirement may seem like a daunting task, but it's one that's well worth undertaking—especially if you're in the cannabis industry. By taking advantage of solutions like MEPs and fiduciary advisors, you can ensure that your employees have access to a retirement savings plan that meets their needs. And by investing in participant education and advice, you can help your employees make the most of their retirement savings so that they can enjoy a comfortable retirement down the road.
