Have you thought about your retirement, or how to attract and retain good employees? What about what would happen to your business in the event that something happens to you? If you’re searching for solutions, Farmers can help you tailor a Retirement Benefits program for you, your family and your employees. By understanding where you are on the path to retirement, your business and your personal needs, your Farmers agent can help you tailor retirement options to meet the specific needs of your business.
Saving and Investing for Retirement*
Below are some options to help you understand ways to save and invest for retirement.
- Variable Annuities
A variable annuity is a contract between you and an insurance company. It is purchased either by making a single payment or a series of payments. The contract guarantees periodic income payments to you for life, beginning on a date specified by you in the future. In addition to periodic income payments, variable annuities may have a death benefit. This benefit enables your beneficiary to receive a specified amount if you pass away before the insurer begins making payments to you. Income payments are guaranteed by the insurance company as long as they have the sufficient resources to fund the payments. Variable annuities are subject to insurance related charges and fees.
- Variable Universal Life Insurance
Variable universal life insurance is a type of permanent life insurance that offers premium and death benefit flexibility, and allows you to direct the investment of your policy’s contract value to suit your individual needs. The growth of your contract value is generally income tax-deferred, and life insurance proceeds usually pass tax-free to your beneficiary. Variable universal life insurance is subject to insurance related charges and fees.
- Mutual Funds
Mutual Funds are investment products that allow investors to pool their money and invest in stocks, bonds and other securities. One of the most popular investment products for individuals and business owners in America today, mutual funds are subject to investment risk including the possible loss of principal invested.
- Retirement Plans
- Traditional and Roth IRAs
One of the easiest ways to save for retirement is to invest in an individual retirement account (IRA). IRAs allow you to benefit from two powerful principles of saving and investing: “tax deferral,” where paying taxes can be delayed to a future period in time, and “compounding,” where interest is added to the principal amount invested. There are two types of IRAs: Traditional and Roth. Several factors are taken into account when determining the type of IRA best suited for you, such as your age, income, and whether or not a spouse is covered by an employee-sponsored plan. Certain restrictions may apply.
- Group and Solo 401(k) plans
Group 401(k) Plans allow your eligible employees to contribute a portion of their salary to a retirement plan. As a business owner, you may choose to contribute either matching or non-elective amounts to the plan on behalf of eligible employees. Solo 401(k) Plans work similar to Group 401(k) Plans but are strictly for business owners who have no employees, although your spouse may contribute if they earn income from your business.
- SEP IRA and SIMPLE IRA plans
Ideal for many small business owners, SEP and SIMPLE IRA Plans are relatively easy employee retirement savings programs to launch. Simplified Employee Pension (SEP) IRA plans offer many of the tax benefits of other qualified plans, but with fewer of the administrative expenses associated with them. Savings incentive match plan for employees (SIMPLE) IRA plans are retirement plans for business owners with less than 100 employees.