My wife has been teaching at a private school for years now, and up until recently it was a pretty small place. They had about 35 students and 3 teachers until about 6 months ago when they expanded to 70 students and 7 teachers. Since they are getting bigger and bigger, her boss decided it was time to offer something to her teachers for working there and it came in the form of a raise and enrollment in a 401K. Her boss is going to match 4% her pay, which is pretty good for such a small company. And even though we invest in Roth IRA’s and mutual funds, we will take free money any day of the week!
I guess the reason that I wrote this quick post is that just because you have a small business, it doesn’t mean you cannot offer your employees retirement options. I worked for a very small (try 4 people) company for 4 years and not once was I offered any retirement options or anything else. I got cost of living raises every year. And that is a big reason why I left…so if you run a business, look into taking care of your employees, it means a lot to them.