Owners also can help employees save for retirement. Start early and take full advantage of tax-saving retirement accounts. The government has structured it so that it's beneficial for anyone to put away money. The pretax dollars most often are invested in stocks, bonds, mutual funds or insurance products. And compounding quickly boosts the value of these investments.
Most retirement plans require at least some professional help to set up or run.
Defined-benefit plans pay a set pension amount each month to retirees, based on their income and years of service, said Rick Burke, an employee benefits and estate planning lawyer an Akron law firm. Traditional pension plans and annuity plans are defined benefit plans. Rather than regulate the amount of benefit coming out of the plans, defined-contribution plans regulate the amount of money going in. Largely because he started saving late in life, Castronovo wanted to contribute as much income as possible, had no employees to consider, and didn't mind spending time managing his retirement plan. So he opened a Keogh account.