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W W W. M A I N E B I Z . B I Z 25 M AY 1 3 , 2 0 1 9 F O C U S W E A LT H M A N A G E M E N T / R E T I R E M E N T e two biggest stresses people have are health and financial matters. "Employers need to set up a program that supports learning how to make better financial decisions, how to deal with, maybe, an elderly parent moving in, or maybe going through a divorce. If employers don't help their people, their people don't show up to work or, when they're at work, they're worried about personal matters," Richard says. Personal attention is important from the human resources standpoint, too, says Annette Nadeau, CFO of Auburn-based Bedard Pharmacy and Medical Supplies. Nadeau and her husband bought the business in the late 1990s and set up a 401(k). "We thought, being small and local, it was important to invest in our employees and make sure they would have a nice nest egg at retirement," she says. ey started working with Richard Brothers three years ago, selecting the firm because of its personalized atten- tion. eir previous advisor, she says, treated the company as "a side note. We never heard from them. If we did, it was just because something was due." Richard Brothers brought in a key provision — opt-out, versus opt-in. Enrollment of new employees soared, says Nadeau. She meets with those thinking of opting out. "I just had someone who graduated from college," she says. "She said, 'I'll opt out. I've got student loan debt.' I said, 'Do you buy pizza every week?' She said yes. I said, 'e cost of that pizza could be a retirement home in Florida.' You've got to bring the con- versation to their level." A little prodding Employer-sponsored plans are domi- nated by 401(k)s. Other plans include tax-deferred Individual Retirement Accounts, including what the IRS calls a Savings Incentive Match Plan for Employees (SIMPLE IRA), and simpli- fied employee-pension IRAs. ere are also retirement plans through employers like schools and government agencies. e plans provide a basic architecture for discretionary features. For example, with a 401(k), employers decide things like investment options, contribution caps, matches, and whether loans from the plan are allowed. Employees decide things like whether and how much to contribute. But many employees don't under- stand their immediate and long-term financial needs and how the plans benefit them. So more employers are implementing workplace financial wellness programs. Experts agree that those, plus strategies like on-site visits and personalized consulting, are key to hiking participation. e trend is for employees to take control of their own retirement, says Vance Gray, founder of Bangor-based VanceGray Wealth Management Inc. Glossary of investment plans 401(k): a defined contribution plan where an employee can make contributions from his or her paycheck either before or after tax, depending on the options offered in the plan. SIMPLE IRA: tax-deferred employer- provided retirement plan that allows employees to set aside money and invest it to grow for retirement. SEP (simplified employee pension) IRA: a retirement plan that an employer or self-employed individu- als can establish. The employer is allowed a tax deduction for contributions to the SEP plan. 403(b): a retirement plan for specific employees of public schools, tax-exempt organizations and certain ministers. 457 Plan: nonqualified, tax advantaged deferred-compensation retirement plan available for govern - mental and certain non-governmental employers in the United States. Defined contribution plan: a retirement plan in which a certain amount or percentage of money is set aside each year by a company for the benefit of each of its employees. S O U R C E : IIS Financial Services C O N T I N U E D O N F O L L OW I N G PA G E » We thought, being small and local, it was important to invest in our employees and make sure they would have a nice nest egg at retirement. — Annette Nadeau Bedard Pharmacy and Medical Supplies Information. Education. Advice. Advocacy. With a broad range of services, our locally-based Wealth Management team can provide the professional guidance you can trust and the security you deserve. Wealth Management products are: Not FDIC Insured | No Bank Guarantee | May Lose Value A Division of Bangor Savings Bank Secure your future with confidence.

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