The Farmington Regional Chamber of Commerce Luncheon, held Aug. 18 at the Centene Center, featured a presentation on retirement plans for small businesses given by speakers Paul Meinsen and Lisa Sumpter.
Meinsen is a Certified Financial Planner and Edward Jones financial advisor whose office is located at 108 W. Columbia St. Sumpter is also a Certified Financial Planner and vice president of First State Financial Management, located at 201 E. Columbia St.
Meinsen began his part of the presentation by speaking about the reasons for starting a business and how it affects retirement plans.
“The reasons for starting a business are as varied as the types of businesses that are out there,” he said. “A business may be started because of a passion or a skill that someone has that they want to make a profit with. One may see a need in the community that is not being met by others. One may have an opportunity that could not be refused. One may start a small business and simply sell it in the future. There are many other reasons.
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“From my observations, many people may start a business and grow the business, and then they run into issues that have nothing to do with their dream of a business — whether it’s supply issues and shipping, hiring and retaining employees, regulations along with taxes, Social Security, workmen’s comp insurance, etc.
“It can be real easy to be focused on the day-to-day issues that you can easily overlook something quite important. That is the future. I’m not really talking about the future of your business. What I’m talking about today is your own and your family’s personal financial future. Much of that future is dependent on what you are doing now.”
During her segment of the presentation, Sumpter spoke about some of the retirement plans available to small businesses — Traditional Roth/IRA accounts, SEP IRA, Simple IRA, 401K, and Defined Benefit, as well as other options.
Meinsen concluded the presentation by offering three reasons to consider these retirement options for small businesses.
“Number one, it helps with employee recruitment and retention,” he said. “As I talk to business owners of all types, the number one issue for them is finding and recruiting employees, training them and retaining them. It’s just not small businesses. Southwest Airlines has a shortage of pilots. At Edward Jones, they say that if we are not talking to our clients, our competitors are. If you don’t have the same thing for employees, there are other employers that would be more than willing to take your good ones off your hands.
“Number two, it can be a tax deduction. You have a good year, and Uncle Sam wants a little piece of your action. You can possibly place money in a profit-sharing type of retirement plan.”
As for number three, Meinsen suggested that the attendees should be thinking about their future.
“It’s so easy to forget that the future is coming,” he said. “All I have to do is ask someone like Larry Joseph, and that future is already here, you know what I’m saying? We all experience that. ‘I’ll take care of that tomorrow.'”
Mark Marberry is a reporter for the Farmington Press and Daily Journal. He can be reached at 573-518-3629, or at firstname.lastname@example.org