Mainebiz

W W W. M A I N E B I Z . B I Z 31 M A R C H 2 1 , 2 0 1 6 Mainebiz: Can you offer any guid- ance on how a business can get started with retirement planning? Steven Tenney: One of the most important things a business owner can do is to keep personal fi nances sepa- rate from company fi nances. at way, if a business runs into trouble, their personal assets will be separate from that. ere will be a wall between the two. e business can also sponsor a retirement plan. All the individuals can contribute, including the owners. One of the greatest wealth building techniques is putting as much money as you can every year in a qualifi ed retirement plan. If you do that for year after year it builds a very nice nest egg. MB: When you're choosing an invest- ment adviser, you hear a lot about fees. How do you wade through that discussion about fees? ST: If you're going to have a com- pany sponsored plan, it really helps to work with someone who is intimately involved in that part of the industry. Retirement plans are very technical, rules keep changing. It's important to be in compliance. Cost is certainly an issue. You have two costs: the cost of investments and the cost of adminis- tration. e administration tends to be fi xed, a function of the number of the employees. Most retirement plans use mutual funds. Keeping expenses low is very important. Many companies these days are going to a bundled approach, so you can go to a single provider. For more customized plans, you might need a third-party administrator. MB: Is it ever too early to discuss succession planning? ST: It's never too early to plan. It's the prudent thing to do. Unfortunately, most business owners just don't do it. ere are a number of reasons they don't. ey're too busy running their shop — that's a big reason. ey want to avoid confl ict within management or the family. If some of their kids are working there and some are not, it can create diff erent expectations. ere are also parents who don't want to hand over the business — they don't want their kids to have the same struggles they had. It's hard running a business. Having said that, it's critical that owners go through the planning process. It can be very advanced, but taken one step at a time it's very doable. Sometimes life throws you a curveball: there's a health issue, an owner or partner dies or leaves the company. Or you go through the value of a buck. of a buck. You understand the value of a dollar. Early mornings. Late nights. Tenacity, wit, and a work ethic that means you never quit, you never settle. Neither do we. Our team honors your lifelong effort with the same level of dedication — and the same work ethic — that it took to realize your dreams. First Advisors PERFORMANCE YOU CAN TRUST First Advisors Financial Advice. Retirement Planning. Trust Services | firstadvisorsonline.com | 866-563-1900 protecting dreams | Securities and investment products are not bank deposits, are not insured by the FDIC or any other government agency, are not obligations of, nor guaranteed by, any bank or bank affiliate, and may involve investment risk, including the possible loss of value or principal amount invested. Portland, ME dunham-group.com 207.773.7100 Local Knowledge. Regional Focus. Global Reach. Brett wanted to expand Bull Moose... Helping Mainers realize their vision and achieve business goals is what The Dunham Group does best. Clients like Brett Wickard know that The Dunham Group develops trust, long- term relationships, and fuels business that grows our state's economy — and that's good news for all Mainers. Call or visit us online. So, he chose The Dunham Group to find locations that were music to his ears. C O N T I N U E D O N F O L L OW I N G PA G E »

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