Roughly half of us have no access to a retirement plan through work. Most small employers don’t know how to make this happen. If they go to an insurance company or bank, they face extremely high costs and employees pay the price, making the plan essentially a rip-off. So many just give up. A new federal rule just went into effect allowing small employers to team up to create group buying power for lower costs. These can happen through Chambers of Commerce and industry trade groups. We’re about a year away from this taking hold. But don’t wait. There are companies offering 401k plans for small businesses. Betterment has one at a reasonable cost. Employees – if your small-midsize employer does offer a 401k – understand the fees. If it’s a high fee plan, contribute only up to the match, open your own Roth IRA with a low-cost company and make your contributions automatic.
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