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Are you a federal contractor, struggling to keep your costs down so you can win contracts, but committed to providing your employees a competitive fringe benefit package? Did you just sign up for a standard 401(k), with the usual profit sharing, safe harbor, matching and vesting? Do you need flexibility to have multiple benefit plans as a federal contractor? Should you be taking a more holistic approach to your company’s qualified plans?

How can you better protect your C-Suite executives and your employees in preparing for retirement? As a federal contractor, could you have a more comprehensive retirement plan with that provides for more than just lifestyle income needs? Could you create plans that allow you to “carve out” benefit groups and offer different plans?

Today’s retirement plans must consider more than just providing the income to maintain a lifestyle when you leave the workforce. Living longer and facing increasing medical expenses requires planning for higher costs – care givinghealth care, and long term care, and may include helping with expenses for others, including parents, spouses, siblings, children and grandchildren, and even friends with no other family support.

How are you protecting yourself, your family, your employees and your company with retirement planning that manages these additional risks? There are three ways to manage risk:

·        Transferring the risk

·        Absorbing the risk

·        Mitigating the risk

Let’s first talk about transferring the risk. What is covered by federal programs such as Medicare, Social Security and Medicaid?

  • Medicare provides some health coverage, but you will want more choices for the level of care and the medical options, including the choice to find the best medical teams with facilities and treatment.
  • Social Security provides an income, but many find their benefits immediately spent on medical costs including Medicare plans and supplemental insurance, co-pays and prescription drug costs.
  • Medicaid benefits provide only most basic care facilities for long term care, and those facilities are not likely to meet your standard as a minimum quality of life. Companion care, respite care and home health care support are typically paid out of pocket by the family.

You can transfer some risk, and you can absorb some risk.  What are your options to mitigate the risk?

What if you could do it through your company’s qualified benefit plans, supplemented by tax planning and external plans specifically designed for you as the business owner? Did you know that there are other tools that can work in conjunction with your plan such as 401(H), a Private Health Care Pension (PHCP), and other tax tools and insurance programs?

Would you like to hear more? Register now for the Florida GovCon Summit on March 29-30 in Tampa at the DoubleTree Westshore.

Michael Valdez will be addressing these topics on Wednesday, March 29 on the panel called “Taking Care of Your Team.” Working with corporate clients, Michael develops custom plans that combine retirement planning with providing for care giving, health care and long term care. Through Synergy Wealth Alliance and The Standard, Michael also works with federal contractors to develop specific benefit plans to “carve out” specific groups such as Service Contract Act (SCA) employees or other defined groups.


About the Author: Jenny W Clark of Solvability helps small businesses in federal contracting win more federal contracts, through coaching programs and training events. The2017 Florida GovCon Summit brings together small business leaders, subject matter experts in federal contracting, agency and prime contractor representatives for two-days of “Teaming for the Bigger Federal Deals.” For more information, please send me a connection request and message me.