Successful Entrepreneurs Need to Consider Defined Benefit Plans

Retirement vehicles can be especially problematic for entrepreneurs who do not have the guidance of an employer or an employer’s selected plan to assist them in the process of finding the right retirement vehicle. Although defined benefit plans were once a critical element of the retirement landscape in the United States, these have fallen out of popularity in recent years because of the financial crisis. 

Many people typically associated defined benefit plans with public sector employees as well and corporate pensions are becoming less and less available. Defined benefit plans, however, can make sense for at least one type of person; a small business owner and entrepreneur.

These pension plans are an ideal retirement vehicle, giving you a broad range of benefits that can help people to keep a larger share of their wealth and run more effective businesses. Many small business owners including high net worth individuals don’t have any kind of retirement plan in place, much less a pension plan. This means no 401(k), no IRA and no investments.