When you start looking at retirement plans for your small business you will probably arrive at the decision that either the SEP or SIMPLE plan is going to work best for your situation. Unless you already own a large business with many employees one of these two plans usually works best.
Then you are going to have to decide which plan provider to use and what kind of investments to offer in the plan. Do you want to offer annuities, straight mutual funds, or both?
Offering fixed indexed annuities is the best option but not always reasonable depending on your situation. Fixed indexed annuities offer income guarantees, principal guarantees, and inflation protection. What could be better? Sure, there are arguments against these products and in some situations I would agree completely.
It is a tough argument to argue against the income guarantee in the fixed indexed annuity. I have seen enough clients lose money at the start of their retirement to know that it is a bad situation. Even two or three down or flat market years in a row can spell big trouble for those people that have "just enough" money to retire.
Then there are the people that build new houses or have other big expenditures right when they retire which makes a down year or two even more detrimental. Waiting to spend the money is not always possible if commitments have already been made. It is better to have guarantees in retirement. Once you get to retirement it is better to not lose than have high potential for gain when the consequences of losing are detrimental to your retirement plan and might even cause you to need to go back to work.
Fixed indexed annuities are the way to go but annuities don't always work in retirement plans. To learn more about the SEP, SIMPLE, and annuities read - Which Is Better For An Annuity - SEP Or SIMPLE?
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