When most people think about financial planning, they picture investments, returns, or picking the “right” funds in their retirement plan.

But meaningful financial progress doesn’t start there.

It starts with you; your values, your goals, and what truly matters in your life.

Financial life planning is not about chasing performance. It’s about building a thoughtful, coordinated process that aligns every part of your financial life with the life you want to live.

1. Start With What Matters Most

Before any numbers or strategies come into play, take a step back and reflect:

What does a fulfilling life look like to me?
What are my top priorities. Now and in the future?
What does retirement mean beyond just “not working”?

For some, it’s freedom and flexibility. For others, it’s security, family, or the ability to give back.

Your financial plan should reflect these answers. Not someone else’s definition of success.

Clarity here drives every decision that follows.

2. Build Around Your Goals. Not Just Your Accounts

Once your priorities are clear, your financial strategy should begin to take shape. This is where a true planning process comes into focus.

It’s not just about your workplace retirement plan. It’s about how all the pieces of your financial life work together, including:

Retirement income planning – How your savings turn into a reliable paycheck in retirement
Asset location – Placing investments in the right types of accounts (tax-deferred, Roth, taxable)
Tax planning – Being thoughtful about how and when income is recognized
Insurance planning – Protecting against risks that could derail your progress
Estate and legal planning – Ensuring your wishes are carried out and your family is supported

Each of these areas plays a role. When coordinated well, they create a more complete and resilient plan.

3. Focus on What You Can Control

A disciplined approach emphasizes the factors you can actually influence:

Saving consistently
Keeping costs low
Maintaining appropriate diversification
Staying invested through market cycles

Markets will move and sometimes unpredictably. A sound plan doesn’t try to outguess those movements. Instead, it’s built to endure them.

This is where process matters more than prediction.

4. Invest With Purpose

Your investment strategy should reflect your goals, time horizon, and comfort with risk. Not short-term headlines.

That means:

Avoiding emotional decisions during market volatility
Maintaining a diversified portfolio aligned with your plan
Understanding that risk and return are connected

The goal isn’t to eliminate risk, it’s to take the right amount of risk for your situation so you can stay on track.

5. Revisit and Adjust Over Time

Life changes and your plan should, too.

As your career evolves, your family grows, or retirement gets closer, your priorities may shift. Regular check-ins help ensure your strategy continues to align with what matters most.

Think of financial planning as an ongoing relationship with your future and not a one-time event.

A Real-Life Example

Consider Laura, a 42-year-old employee participating in her company’s retirement plan.

At first, Laura focused only on her 401(k), contributing enough to get the match and choosing a few funds she felt comfortable with. But she wasn’t sure if she was truly on track.

When she stepped back and went through a financial life planning process, a few important things became clear:

Her top priority wasn’t early retirement. It was flexibility in her late 50s to scale back work and spend more time with family.
She realized most of her savings were in pre-tax accounts, so she began adding Roth contributions to improve future tax flexibility.
She updated her beneficiaries and estate documents, something she hadn’t revisited in years.
She reviewed her insurance coverage to ensure her family would be protected if something unexpected happened.
And importantly, she began thinking about how her savings would translate into retirement income, not just an account balance.

Nothing about Laura’s situation required a drastic change. Instead, small, thoughtful adjustments, aligned with what mattered most to her, helped create a clearer, more confident path forward.

Bringing It All Together

Financial life planning is about connecting the dots.

It’s aligning your:

Goals
Investments
Income
Taxes
Protection strategies
Legacy wishes

…into one cohesive plan designed around you.

When each piece is working together, decisions become clearer and more intentional.

Final Thought

You don’t need to have everything figured out today.

Start with what matters most. Build a process around it. Stay consistent.

Over time, those thoughtful decisions can turn into something much more meaningful than just financial progress. They can support a life that truly reflects who you are and what you value.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5653321

Interested in more?

Let's Talk

Retirement is one of life’s biggest transitions. Your paycheck may stop, but your expenses don’t. And your time, priorities, and goals often shift in meaningful ways. If you’ve never created a formal budget before, you’re not alone. Many people haven’t needed one during their working years.

The good news? It’s never too late to put a simple, flexible plan in place that helps you feel confident about your spending and your future.

Here are some practical tips to help you build, and stick to, a retirement budget that works for you.

1. Start with What You Spend Today

Before building a retirement budget, take a look at your current spending. This gives you a realistic baseline.

Focus on:

• Housing (mortgage/rent, taxes, insurance)

• Food and utilities

• Transportation

• Insurance and healthcare

• Discretionary spending (travel, hobbies, dining)

From there, adjust for what will change in retirement as some costs may go down (commuting, work expenses), while others may increase (healthcare, travel, leisure).

2. Separate “Needs” from “Wants”

A helpful way to simplify budgeting is to divide expenses into two categories:

• Needs: Essential expenses you must cover (housing, food, insurance, basic healthcare)

• Wants: Lifestyle choices (travel, entertainment, gifts, dining out)

This approach gives you flexibility. In years when markets are volatile or unexpected expenses arise, you can adjust discretionary spending without disrupting your core lifestyle.

3. Plan for Healthcare… More Than You Expect

Healthcare is often one of the most underestimated retirement expenses.

Be sure to account for:

• Medicare premiums and supplemental coverage

• Out-of-pocket costs (deductibles, prescriptions, dental/vision)

• Potential long-term care needs

Building a cushion here can help avoid surprises later.

4. Build in a “Buffer Zone”

Life rarely follows a perfect plan. Home repairs, helping family, or simply wanting to take an extra trip can all impact your budget.

A good rule of thumb is to include a buffer (5–10%) in your annual spending plan. This creates breathing room and reduces the stress of unexpected costs.

5. Align Your Budget with Your Income Strategy

Your retirement income may come from multiple sources:

• Workplace retirement plans (401(k), 403(b))

• Social Security

• IRAs or taxable accounts

The key is making sure your withdrawal strategy aligns with your spending needs so your money lasts while still supporting the lifestyle you want.

This is where thoughtful planning really matters; balancing reliable income with flexibility for the years ahead.

6. Revisit and Adjust Each Year

Your retirement budget isn’t a one-time exercise. It’s a living plan.

Each year, take a few minutes to review:

• Changes in spending

• Market performance

• Income sources

• Life goals or priorities

Small adjustments over time can make a big difference in keeping your plan on track.

Final Thoughts

Creating a retirement budget isn’t about restricting your lifestyle. It’s about giving yourself clarity and financial confidence. When you know where your money is going and how it supports your goals, it becomes much easier to enjoy retirement without second-guessing every decision.

If you haven’t created a budget yet, that’s okay. Starting now, even with a simple outline, is a powerful step toward making the most of the years ahead.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine waht is appropriate for you, please contact me directly or consult another qualified professional

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5341120

Interested in more?

Let's Talk

For HR leaders, finance professionals and retirement plan committees, sponsoring a 401(k) or 403(b) plan is both a valuable employee benefit and an important fiduciary responsibility. Plan sponsors must ensure that their plan operates in the best interests of participants while maintaining reasonable fees, competitive investments and quality services.

One of the most effective ways to evaluate the health of a retirement plan is through benchmarking. Benchmarking allows plan sponsors to compare their plan’s fees, services, investments, and design features to similar plans in the marketplace. The insights gained can help identify opportunities to improve the plan and demonstrate responsible oversight.

What Is Retirement Plan Benchmarking?

Benchmarking is the process of comparing your retirement plan against similar plans based on factors such as:

• Total plan assets

• Number of participants

• Industry type

• Plan features and services

The goal is to determine whether your plan’s costs and services are reasonable and competitive. Benchmarking also supports fiduciary oversight under the Employee Retirement Income Security Act, which requires plan fiduciaries to act prudently and ensure plan fees are reasonable relative to the services provided.

Why Benchmarking Is Important

Demonstrates Fiduciary Responsibility

Benchmarking provides documentation that plan sponsors are reviewing plan costs and services on a regular basis. This process helps support a prudent decision-making framework.

Evaluates Plan Fees

Retirement plan fees can vary widely depending on plan size and service structure. Benchmarking helps determine whether costs such as recordkeeping, advisory, and investment fees are reasonable compared with similar plans.

Improves Participant Outcomes

Benchmarking often uncovers opportunities to improve the plan, such as:

• Lower-cost investment options

• Additional participant education resources

• Enhanced retirement planning tools

• New plan features like automatic enrollment

Even small improvements can have a meaningful impact on long-term retirement savings.

Key Types of Retirement Plan Benchmarking

Plan sponsors typically review several different aspects of their retirement plan during benchmarking.

Fee Benchmarking

Fee benchmarking evaluates the overall cost of the plan relative to similar plans. Areas reviewed may include:

• Record keeping and administrative fees

• Investment expense ratios

• Advisor compensation

• Total plan cost per participant

This type of benchmarking is commonly conducted every one to three years.

Investment Benchmarking

Investment benchmarking reviews the plan’s investment lineup to ensure funds remain competitive and appropriate for participants. Committees often evaluate:

• Fund performance relative to benchmarks

• Expense ratios

• Risk characteristics

• Availability of lower-cost share classes

Investment monitoring is often performed quarterly or semiannually.

Service Benchmarking

Service benchmarking evaluates the quality and scope of services provided by vendors such as record keepers and advisors.

This may include reviewing:

• Participant education programs

• Retirement readiness tools

• Call center support

• Technology platforms and mobile access

• Plan administration support

Ensuring participants have access to strong resources can improve engagement and retirement readiness.

Plan Design Benchmarking

Plan design benchmarking compares your plan’s structure and features against industry norms such as:

• Employer matching contributions

• Auto-enrollment and auto-escalation features

• Vesting schedules

• Eligibility rules

Understanding how your plan compares to others can help ensure your retirement benefit remains competitive for attracting and retaining employees.

Request for Proposal (RFP)

A Request for Proposal is a comprehensive benchmarking process where plan sponsors invite multiple providers to submit proposals for plan services. This process evaluates pricing, services, technology, and overall value.

An RFP allows plan sponsors to test the marketplace and confirm whether their current provider remains competitive. Many organizations conduct an RFP every three to five years.

Final Thoughts

Benchmarking is an essential part of responsible retirement plan management. By regularly evaluating fees, investments, services, and plan design, plan sponsors can ensure their retirement plan continues to provide strong value for participants.

Regular reviews also help demonstrate fiduciary prudence and identify opportunities to strengthen the plan over time.

If your organization hasn’t reviewed its retirement plan recently, now may be the time. Consider working with your advisor or retirement plan consultant to conduct a benchmarking review of your 401(k) or 403(b) plan to ensure it remains competitive, cost-effective, and positioned to support your employees’ long-term retirement goals.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Let's Talk

For many retirees, Social Security is a foundational source of income—yet most people claim without fully understanding how their timing and strategy can impact lifetime benefits. By learning how different claiming options work, you can make a more informed decision that supports your long-term financial goals.

1. Know Your Full Retirement Age (FRA)

Your FRA is the age at which you qualify for 100% of your Social Security benefit. Claiming before FRA (at age 62 or later) reduces monthly benefits permanently. Waiting until FRA or beyond increases your monthly income and can provide more stability later in retirement.

2. Consider Delaying Benefits for Higher Lifetime Income

If you delay Social Security past your FRA, benefits grow by roughly 8% per year until age 70. This strategy can be especially impactful for individuals with longer life expectancies or families with longevity. Delaying can also strengthen survivor benefits for a spouse.

3. Evaluate Spousal Strategies

Married couples have more flexibility in how they claim. One spouse may claim earlier to provide income while the higher-earning spouse delays their benefit for maximum growth. Understanding how spousal and survivor benefits work can help couples significantly increase total household benefits.

4. Integrate Social Security Into Your Broader Retirement Plan

Choosing when to claim shouldn’t happen in a vacuum. Factors like part-time work, pension income, tax considerations, and required minimum distributions all affect the optimal strategy. Coordinating Social Security with your savings and spending plan can help stretch your retirement dollars further.

5. Avoid Earning Penalties if You Claim Early

If you claim before FRA and continue working, Social Security may temporarily withhold some of your benefits once you exceed annual earnings limits. This isn’t a penalty, you’ll eventually receive credit for those reductions, but understanding the rules can prevent surprises.

6. Review Annually and Adjust if Needed

Life changes such as marriage, divorce, widowhood, health changes can all impact your eligible benefits. Regularly reviewing your strategy ensures you take advantage of every opportunity available.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Let's Talk

Many participants focus on how to save, but few think about how to withdraw. A thoughtful income strategy in retirement may reduce taxes, provide more flexibility, and increase the longevity of your nest egg.

Here are three simple guidelines to keep in mind:

1. Diversify your withdrawal sources

Use a combination of Traditional (tax-deferred), Roth (tax-free), and taxable accounts to manage income and stay in a favorable tax bracket.

2. Plan early for Required Minimum Distributions

Tax-deferred accounts require withdrawals beginning at age 73. This applies whether you need the money or not. Early planning can help reduce surprise tax bills later.

3. Use Roth accounts strategically

Roth funds are powerful for tax-free withdrawals. They can help you control taxable income as expenses rise or income shifts in retirement.

Bottom Line:

Withdrawing money strategically can be just as important as saving it. A well-designed plan may reduce taxes, improve income stability, and help your resources go further.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Let's Talk

Two Simple Tools for Smarter Retirement Planning

When it comes to planning for retirement, a few simple rules can make complex concepts easier to understand. Two of the most helpful are the Rule of 72 and the Rule of 55. Both can give you quick insight into how your savings work and how you can make more informed decisions with your retirement plan.

The Rule of 72: How Fast Will Your Money Double?

The Rule of 72 is a quick mental shortcut to estimate how long it will take your money to double based on your rate of return. Just divide 72 by your expected rate of return.

Example:

If your retirement account earns a 7% average annual return, your money doubles roughly every 10 years (72 ÷ 7 = ~10.3).

Why it matters for employees:

• It helps you understand the power of starting early.
• It shows how even small increases in contributions or investment return can significantly grow your balance over time.
• It encourages long-term thinking rather than getting discouraged by short-term market noise.

The Rule of 55: Accessing Retirement Savings Penalty-Free

The Rule of 55 is an IRS provision that allows you to take penalty-free withdrawals from your employer-sponsored retirement plan (like a 401(k) or 403(b)) if you leave your job in or after the calendar year you turn 55.

Key points:

• It applies only to the plan sponsored by the employer you just left not to old plans or IRAs.
• Withdrawals are still taxable, but the 10% early withdrawal penalty is waived.
• This rule can be especially helpful for employees considering early retirement, a career change, or a phased transition out of the workforce.

How employees can use this in planning:

• Build flexibility into your retirement strategy knowing this option exists can reduce pressure.
• If you're planning to retire early, you may leave money in your current employer's plan to take advantage of the penalty-free access.
• Use it as a bridge until Social Security or other income sources begin.

Why These Rules Matter Together

While the Rule of 72 helps you understand growth, the Rule of 55 helps you understand access. One encourages long-term accumulation; the other provides short-term flexibility. Together, they give employees a clearer picture of both how their retirement savings grow and how they can be used as life plans evolve.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Let's Talk

How Inflation Can Affect Retirement Savings and Ways to Mitigate Its Impact

Planning for retirement is challenging enough, but one factor often underestimated is inflation, the gradual increase in prices over time. Even modest inflation can erode the purchasing power of your savings, meaning the money you’ve set aside may not stretch as far in the future as it does today. Understanding how inflation works and taking steps to protect against it can make a significant difference in your long-term financial security.

How Inflation Impacts Retirement Savings

• Reduced purchasing power: A retirement goal of $80,000 annually today might require $110,000 or more in the future,
depending on inflation.
• Eroded investment returns: If your portfolio earns 6% but inflation is 3%, your real return is closer to 3%.
• Higher cost of living in retirement: Healthcare, housing, and daily expenses often rise faster than general inflation.

Historical Inflation Trends

Over the past 30 years, inflation in the U.S. has averaged roughly 2–3% per year, but there have been periods of higher inflation (such as the early 1980s and the recent 2020s) showing that rates can fluctuate significantly. Planning for a range of potential inflation scenarios is key to protecting your retirement lifestyle.

Strategies to Mitigate the Impact of Inflation

• Invest for growth: Incorporating equities can help your portfolio outpace inflation over the long term.
• Diversify your retirement accounts: Using tax-advantaged accounts like 401(k)s, IRAs, or Roth accounts can help increase
after-tax income.
• Consider inflation-protected investments: Options like Treasury Inflation-Protected Securities (TIPS) or certain annuities can offer
safeguards.
• Delay Social Security when possible: Benefits increase each year you delay up to age 70, helping protect income from inflation.
• Review and adjust regularly: Periodically updating your retirement strategy ensures your plan stays aligned with changing
economic conditions.

Next Steps

Inflation can quietly erode your retirement savings if left unaddressed. Take action now by reviewing your current retirement plan, assessing how it accounts for inflation, and exploring strategies to protect your future purchasing power. Schedule a consultation with a financial advisor today to create a plan tailored to your goals and safeguard your financial security in retirement.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Let's Talk

What is a Collective Investment Trust (CIT)? And How it Differs from a Mutual Fund

As a retirement plan sponsor or committee member, you're probably familiar with mutual funds as the go-to investment option in most 401(k) and 403(b) plans. But you may have also come across Collective Investment Trusts, or CITs, and wondered: How are theses different? Are they better? Should we consider them for our plan?

Let's take a closer look at CITs, how they compare to mutual funds, and what you need to know when evaluating them for your retirement plan lineup.

What is a Collective Investment Trust (CIT)?

A Collective Investment Trust (CIT) is a pooled investment vehicle, similar to a mutual fund, that's sponsored by a bank or trust company. but unlike mutual funds, CITs are only available to qualified retirement plans (like 401(k)s, 403(b)s, and certain 457 plans) and not sold to the general public.

Because of this, CITs are regulated by banking authorities, such as the Office of the Comptroller of the Currency (OCC), rather than the SEC.

CITs vs. Mutual Funds: What's the Difference?

Here's a quick side-by-side comparison to help clarify the key differences:

Feature	Mutual Funds	CITs
Who Can Invest?	Anyone (individuals or institutions)	Only qualified retirement plans
Regulated By	SEC	OCC or state banking regulators
Disclosure	Prospectus and public figures	Trust documents and fact sheets (not public)
Ticker Symbol?	Yes – Searchable	Usually no
Pricing	Daily Net Asset Value (NAV)	Also uses daily NAV
Fees	May include SEC and marketing expenses	Typically lower- no 12b-1 or distribution costs
Customization	Limited	Often customized by plan size or ivestment strategy

Why are more plans using CITs?

One word: Cost.

Because CITs aren't required to register with the SEC or engage in public marketing, they often carry lower expense ratios than comparable mutual funds. In fact, it's common for CITs to be managed by the same portfolio managers using the same strategies as a mutual fund, just with reduced overhead.

Real-World Example:

A small-sized 401(k) plan with $5 million in assets was using a target-date mutual fund with an average expense ratio of 0.45%. By switching to the CIT version of the same strategy, they secured a 0.30% expense ratio, savings 15 basis points annually. Over time, those savings can significantly boost participant account balances.

How Do CITs Work Operationally?

While the structure behind the scenes is different, the participation experience is nearly identical to a mutual fund:

• Daily Pricing: CITs are priced once a day, just like mutual funds.

• Statements: CITs appear on participant statements and online portals with clear naming and balances.

• Trading: Transactions (buy/sell) typically follow the same trade cycle as mutual funds.

To most plan participants, CITs look and feel just like mutual funds.

Things to Keep in Mind

CITs have plenty of upside—but also a few nuances you’ll want to consider:

• Transparency: No public prospectus or ticker symbol means you’ll need to rely on provider fact sheets and trust documents for info.

• Education: Because they’re less familiar, you may need to explain to participants what a CIT is and why it’s in the plan.

• Access: Not all recordkeepers or custodians support CITs, and some CITs may have investment minimums.

• Documentation: Be sure to review and retain the participation agreement and declaration of trust for any CITs you offer.

Your Fiduciary Role

As a fiduciary, your responsibility is to select, monitor, and document plan investments in the best interest of participants. While CITs can be a great low-cost option, they still require the same level of due diligence:

• Review performance and fees regularly

• Understand the underlying strategy and manager

• Benchmark against peers

• Maintain written records of your evaluations

Bottom Line

CITs are becoming more common in retirement plan lineups for a reason—they offer cost savings, flexibility, and institutional-quality strategies. If your plan has the size and structure to support them, it’s worth exploring CITs as part of your investment menu.

Want help evaluating whether CITs make sense for your plan? Let’s talk—we can walk through the pros, cons, and how to make an informed decision that supports your fiduciary duties.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Since 2012 at Rose Street, Scott has been responsible for helping the firm’s individual wealth management clients with income strategies for retirement and consulting with employers with their employee retirement plans. In free time, he enjoys golf, biking, skiing, cooking, and traveling. Fun Fact, Scott has a hobby of filling growlers with coins!

Roth 401(k): To Contribute or Not to Contribute? A Comprehensive Comparison

Top 7 Reasons to Contribute to a Roth 401(k)

1. Tax-Free Withdrawals

Contributions grow tax-free, and qualified withdrawals in retirement are tax-free, providing a tax-free income stream.

2. No Required Minimum Distributions (RMDs)

Unlike traditional 401(k)s, Roth 401(k)s have no RMDs during your lifetime, giving you more control over your retirement funds.

3. Tax Diversification

Having both Roth and traditional retirement accounts provides tax diversification, allowing your to better manage your tax situation in retirement.

4. Inheritance Benefits

Roth 401(k)s can be passed on to heirs with tax-free growth, providing a valuable estate planning tool.

5. Potential for Higher Tax Rates

If you expect to be in a higher tax bracket in retirement, paying taxes now with a Roth 401(k) may save you money in the long run.

6. No Income Limits

Unlike Roth IRAs, Roth 401(k)s do not have income limits, making them accessible to high earners.

7. Employer Contributions

you can still receive employer matching contributions, which are placed in a traditional 401(k) account, allowing you to benefit from both types of accounts.

Top 7 Reasons Not to Contribute to a Roth 401(k)

1. Immediate Tax Impact

Contributions to a Roth 401(k) are made with after-tax dollars, reducing your current take-home pay.

2. Lower Current Income

If you are in a high tax bracket now but expect yo be in a lower tax bracket in retirement, a traditional 401(k) may be more beneficial.

3. Potential Tax Law Changes

Future tax laws could change, impacting the benefits of Roth 401(k) accounts.

4. Complexity in Management

Managing both Roth and traditional accounts can add complexity to your retirement planning.

5. Limited Contribution Limits

The overall contribution limit for 401(k) accounts is the same, meaning your total contributions to Roth and traditional accounts combined cannot exceed the annual limit.

6. No Immediate Tax Deduction

Contributions to a Roth 401(k) do not provide an immediate tax deduction, unlike traditional 401(k) contributions.

7. Impact on Financial Aid

Having significant Roth 401(k) balances may impact your eligibility for financial aid or other need-based assistance programs.

Conclusion

Deciding whether to contribute to a Roth 401(k) depends on your current financial situation, future tax expectations, and retirement goals. Weighing the pros and cons can help you make an informed decision that aligns with your long-term financial strategy.

Curious which is best for you or want to learn more about the Roth? Give us a call.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Simple IRA vs 401(k): Should You Consider Upgrading?

As your company evolves, your retirement plan should keep pace. If you're considering upgrading from a SIMPLE IRA to a 401(k), here are the top five advantages and considerations to keep in mind.

Top 5 Advantages of a 401(k)

1. Higher Contribution Limits

Employees can defer up to $23,500 in 2025 (plus $7,500 catch-up if age 50+), compared to $16,500 for SIMPLE IRAs. That means more savings potential for owners and staff.

2. Greater Plan Flexibility

401(k) plan is a more competitive and familiar benefit, especially for high earners or experiences professionals.

3. Enhanced Talent Attraction & Retention

A 401(k) plan is a more competitive and familiar benefit, especially for high earners or experienced professionals.

4. Expanded Employer Contribution Options

Unlike SIMPLE IRAs with fixed formulas, 401(k) plans let you tailor your matching or profit-sharing strategy based on your budget and goals.

5. Long-Term Scalability

401(k)s can grow with your business and integrate advanced strategies like Safe Harbor provisions or Cash Balance plans as your company matures.

Top 5 Considerations or Trade-Offs

1. Increased Administrative Complexity

401(k)s requires IRS filings (e.g., Form 5500), nondiscrimination testing's, and possibly annual audits once your plan grows.

2. Higher Setup and Maintenance Costs

Compared to SIMPLE IRAs, 401(k)s typically involve provider, TPA, and advisory fees, but startup tax credits may offset these costs for small employers.

3. Fiduciary Responsibility

Sponsors of 401(k) plans are fiduciaries, meaning you're responsible for plan oversight, investment selection, and cost monitoring.

4. More Time and Decision-Making Required

You'll need to work with a recordkeeper, advisor, and/or TPA to select features, manage compliance, and communicate with participants.

5. Transition Planning is Key

While SECURE Act 2.0 now allows mid-year transitions to Safe Harbor 401(k)s, timing and communication with employees are still critical.

Ready to Evaluate Your Options?

Let's talk about whether a 401(k) plan makes sense for your team, and how to make the transition smoothly and strategically.

1. Start With What Matters Most

2. Build Around Your Goals. Not Just Your Accounts

3. Focus on What You Can Control

4. Invest With Purpose

5. Revisit and Adjust Over Time

A Real-Life Example

Bringing It All Together

Final Thought

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

1. Start with What You Spend Today

2. Separate “Needs” from “Wants”

3. Plan for Healthcare… More Than You Expect

4. Build in a “Buffer Zone”

5. Align Your Budget with Your Income Strategy

6. Revisit and Adjust Each Year

Final Thoughts

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

What Is Retirement Plan Benchmarking?

Why Benchmarking Is Important

Demonstrates Fiduciary Responsibility

Evaluates Plan Fees

Improves Participant Outcomes

Key Types of Retirement Plan Benchmarking

Fee Benchmarking

Investment Benchmarking

Service Benchmarking

Plan Design Benchmarking

Request for Proposal (RFP)

Final Thoughts

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Here are three simple guidelines to keep in mind:

Bottom Line:

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

Two Simple Tools for Smarter Retirement Planning

The Rule of 72: How Fast Will Your Money Double?

The Rule of 55: Accessing Retirement Savings Penalty-Free

Why These Rules Matter Together

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

How Inflation Can Affect Retirement Savings and Ways to Mitigate Its Impact

How Inflation Impacts Retirement Savings

Historical Inflation Trends

Strategies to Mitigate the Impact of Inflation

Next Steps

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Interested in more?

What is a Collective Investment Trust (CIT)? And How it Differs from a Mutual Fund

What is a Collective Investment Trust (CIT)?

CITs vs. Mutual Funds: What's the Difference?

Why are more plans using CITs?

Real-World Example:

How Do CITs Work Operationally?

Things to Keep in Mind

Your Fiduciary Role

Bottom Line

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Roth 401(k): To Contribute or Not to Contribute? A Comprehensive Comparison

Top 7 Reasons to Contribute to a Roth 401(k)

Top 7 Reasons Not to Contribute to a Roth 401(k)

Conclusion

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Simple IRA vs 401(k): Should You Consider Upgrading?

Top 5 Advantages of a 401(k)

Top 5 Considerations or Trade-Offs

Ready to Evaluate Your Options?