401(k) Plan Sponsors: 5 Reasons to Outsource Your Plan Sponsorship & Fiduciary Obligations

401(k)

Our Fiduciary File Checklist and Expertise in Plan Sponsorship Can Save You Time and Money

As an employer, offering a 401(k) plan to your employees can be incredibly rewarding. However, it is also a challenging undertaking – one that requires much of you, including meeting your fiduciary obligations to plan participants each year. The basic rules outlined by the Employee Retirement Income Security Act (ERISA) offer a standard of conduct that must be followed in administering a plan and managing its assets. Since the required actions and responsibilities are manifold, many small and medium-sized business owners outsource their plan sponsorship through a third-party service provider. 

At Paces Ferry Wealth Advisors, we understand your regulatory responsibilities as a 401(k)-plan sponsor and the need for proper documentation – and we know it can be a bit overwhelming. We believe that having a solid knowledge- base of plan governance, plan design, investments, participant investment behaviors, and recordkeeper services is unique, and we are proud to offer our knowledge and experience to our clients wishing to outsource their plan sponsorship. With the growing number of court cases and settlements related to the mismanagement of retirement programs, the stakes are increasing for sponsors to fully appreciate their plans’ risks and take necessary steps to meet their fiduciary obligations. 

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Social Security Taxes Will Rise Higher than Benefits in 2021: Are You Prepared?

social security taxes
Learn How These Changes Will Impact Your Financial Security

Each year, the Social Security Administration announces important numbers that impact both workers and retirees. In October, new wage base and benefit information for 2021 was released and it means a significantly larger tax bill for nearly 12 million high-earning workers. Why? Let’s dig into the numbers for both taxes and benefits below.

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Financial Tips for the ‘Sandwich Generation’

financial tips for multigenerational families
Financial Tips for Those Who Juggle Caring for Aging Parents While Raising Kids.

Are you in the position of feeling you need to juggle your own financial needs with both your children and your aging parents (or another relative)? If so, you are a part of the “sandwich generation”. You are not alone; twelve percent of all parents fall into this category.

It can be a taxing and stressful situation to be in, not just financially but also emotionally. Your kids may need help with college and large expenses like a car or home, and your parents may be depending on you for extra security as they move further into retirement, and possible medical issues arise. With these added economic expectations, how are you to save for your financial health and retirement?

These tips are different strategies designed to help you, the sandwich generation, navigate the difficulties of caring for your children and aging parents. The most important thing is to have a plan, and if you do not have one, this will get you started on the right foot.

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Business Loans: What You Need to Know to Get the Right One

business loans
How to make sure you’re getting the best loan for your business.

If you’re an entrepreneur looking for a business loan to start or grow your business, you have your work cut out for you. While personal loans may be readily available and easily obtained, the same is not always true with business loans. There is a lot more that lenders have to take into consideration when assessing whether they think they’ll be repaid or not. They’re going to look to see if you or your business has a solid credit history, whether the bank can manage the risk, if you as a business owner are qualified and responsible to be running your business, and, ultimately, whether or not the loan makes good business sense.

Before you get started applying for a business loan, here are some things you should know.

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Zach Morris was Recently Featured in CNBC Article for New Parents

Zach Morris was Recently Featured in CNBC Article for New Parents

In an article published by cnbc.com providing financial advice for new parents, Co-Founder Zach Morris offered his insight on childcare and healthcare. Here’s a snip of the article:

Adding another member to your family also adds a myriad of new financial considerations and expenses. A middle-class couple can expect to spend more than $230,000 to raise a child, not including college costs. One estimate found that by 2036, four years at a private university will cost around $303,000, up from $167,000 today.

Childcare and health care

Childcare is often the biggest immediate expense new parents will face, Richardson said. (Many families will spend more than $1,000 a month on the care.)

In some cases, one parent will decide to leave their job and take care of the child themselves, said Zach Morris, a CFP and founder of Paces Ferry Wealth Advisors in Atlanta.

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Zach Morris Gave Insight on Health Insurance in Recent Article Published by U.S. News

In an article published to provide new parents some budgeting tips by money.usnews.com, Co-Founder Zach Morris offered his insight and expertise on how childbirth may influence your health insurance plans. Here’s a snip of the article:

Revaluate Your Health Insurance Coverage

Spend time analyzing your health insurance plan to understand all your potential out-of-pocket costs. You may also want to consider switching plans. For instance, opting for a low-deductible plan may cost more on monthly premiums but may reduce your total out-of-pocket spending on baby-related medical expenses.

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Stay at Home Spouse: Considerations for a One Income Household

stay at home spouse
There are Many Benefits to One Spouse Staying Home, but Don’t Neglect These Crucial Points

In the United States today, about 20 percent of households include one stay-at-home spouse. There are certainly many benefits to a one-income household on the childcare and housekeeping fronts, but there are important financial considerations for stay-at-home spouses that don’t often get the attention they deserve.

Here are four things to keep in mind if you have a stay-at-home spouse in your household, or you’d like to in the future.

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FSA vs HSA: How to Make the Most out of Your Employee Benefits

healthcare costs
A comparison of the two biggest tax-advantaged savings accounts offered by employers

If there was a pop quiz and you were asked to explain the difference between a flexible spending account (FSA) and a health savings account (HSA), would you pass the quiz?

Chances are, you’d probably struggle with the answer. Though they share similar names and some other key similarities, such as both being tax-advantaged options available through work benefits, there are some major differences between the two accounts.

Like any decision, it’s best to make your choice from an informed position. To do so, here are the main takeaways you should know when it comes to the differences between an HSA and an FSA account.

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The Cost of College: 5 – 10 – 15 Years from Now

college hats thrown in air
As Educational Costs Continue to Rise, Parents and Students Must Be Prepared

Saving for college can seem like an uphill battle, especially given that costs have risen an average of 5 percent annually for the last decade. Accumulated College Board data for the 2019-2020 academic year showed an average cost of $21,950 as an in-state student at a state school, and a whopping $49,870 for a private school. Doing the math easily reveals that four years at any school will cost a pretty penny, especially if your children aren’t close to college age just yet.

Assuming cost trends continue, parents and prospective students will face steep tuition bills in the future.

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How to Maximize Your Stock Options

The Key Considerations You’ll Need to Best Leverage this Employee Benefit

Stock options have become a popular way for employers to compensate employees and incentivize high-quality work. Not only are they convenient and cost-effective for the employer, but they provide employees with added value for a job well done. When employees feel valued and do good work, the company’s stock value rises, and everyone wins.

Since stock options aren’t as cut and dry as a normal paycheck, though, many employees don’t fully understand how to make the most of them. Below we’ll discuss how stock options work, when to exercise them, and how to maximize this type of compensation.

The Basics of Employee Stock Options

When an employer offers stock options as part of your benefits package, it means you’ll have the opportunity to purchase a certain amount of company stock for a set price called the “grant price”, and typically within a set time frame. Most often, employers want to incentivize you to stay with the company long-term, so you may have to wait until your stock options vest – that is, until they reach the point in time when they become available to you to exercise. This means new employees usually can’t take advantage of them right away. Once they vest, you’ll have a specific time period in which to use your stock options before they expire.

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Atlanta, GA 30339

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