Twelve Points Insights
Growing up in a family business, I learned that you are only as good as the people you surround yourself with. To quote my father Paul Federico, “My employees are my greatest asset. I make sure they know that every day.” Most companies put retirement plans in place to retain and reward their employees, but what they don’t realize is that they need to constantly monitor those plans. If they don’t, not only can it hurt their employees, but it can also hurt them.
Manny Frangiadakis’ inaugural segment as the monthly financial reporter for Radio Entrepreneurs took place on February 27th, 2015. He and host Jeff Davis discussed the importance of having a retirement account and strategies for mitigating taxes for business owners. For most business owners, it’s a priority to figure out a financial strategy that benefits their business, their employees, and potentially helps them save money on taxes in the process.
On a weekly basis, I talk to myriad people at events, social gatherings and in the process of doing business. Somehow we always end up talking shop. The number one question I get asked is, “What should I do with my 401(k)?” To clarify, I ask, “What do you mean?” Their follow-up question is, “Well, how should I invest it?” To which I respond, “Who is the advisor on your plan? Just ask them.”
Businesses, the people who own them, and the industries they constitute, are unique. I think we can all agree that a grocery store operator is going to have different needs and issues than the dentist down the street. However, there are some commonalities among business owners, the most important of which is that they all want to minimize their taxes. So how does one accomplish such a feat? Here are a few tax-reduction tips for business owners:
Does your company have a 401(k)? Are you the Plan Sponsor? If you answered “yes” to both of these questions, I have one more for you: are you aware of the fiduciary role you are assuming? As a business owner and a 401(k) Plan Sponsor, you have a responsibility to select a high-quality investment advisor for your plan.
In December 2014, Francesca Federico was a featured guest on Small Business Digest Radio. She and host Don Mazzella spoke about her career path, gift-giving advice and succession planning for family-owned businesses.