Many companies outsource some or all of their benefit plan offerings. Orientation programs are often put in place when a plan provider changes or when new employees join the firm. The relationship manager aspect of your job might find you standing on a stage explaining how benefit plans work. We have all been taught to sell benefits, not features. So how do you help employees get their benefit plans to work for them?

8 ways workers can start to build wealth

Plans have many benefits. Let us focus attention on the aspects relating to wealth building. Some aspects might be provided by the parent company, not your firm. By incorporating those features, you demonstrate you are providing independent advice.

1. Enroll in the 401(k) plan – don't leave money on the table. This should be relevant for 403(b) plans too. Once upon a time companies provided defined benefit pension plans. Over the years, this gradually transitioned into defined contribution plans. Participating in the company's 401(k) might be an option you need to elect. This is a good move for several reasons: Everyone needs to save for retirement. It is easier to save before tax dollars vs. after tax dollars. Any growth you achieve in a tax-deferred account also compounds tax deferred. Many companies match your contribution up to a certain amount. By not contributing, you are literally leaving money on the table. Lesson: Everyone should elect to contribute to their 401(k) plan. If your company matches up to a certain amount, you want to get what you deserve.
2. Think long term. Charts show the stock market has historically outperformed other asset classes. The value of stocks jumps up and down every day, but long-term return, those measured over decades, have been impressive. A generally accepted rate for large capitalization stocks over time has been about 10%. Unless you will be needing this money in the near term, invest for the long term. Lesson: Everyone has a different appetite for risk, but if you can think long term, keep at least some of your retirement plan money in large cap stock funds.
3. Social Security is only part of your retirement income. It is a benefit, not a replacement for your salary. Think of your future retirement income as a stool with three legs. One leg is Social Security. Another is your income from your tax-deferred investments and the third leg is from your taxable investments. Some stools add a fourth leg, part-time employment in retirement. Lesson: Providing for your retirement is your responsibility. Social Security is only part of the solution, not the solution.
4. Do not stop retirement savings at your 401(k). Individual retirement accounts (IRAs) were set up before 401(k) plans were invented. They work under similar rules as the 401(k) but let you put $6,000/year of your income aside for additional retirement savings. Your taxable income is reduced by this amount. Lesson: Save as much as you can. Tax deferral is better than being taxed annually on any gains.
5. Does the company offer an employee stock purchase plan? Many companies allow you to buy shares in your own firm at a discount to the current market price. It might be 15%. You might be allowed to buy a certain dollar amount of shares on a quarterly basis. The stock becomes yours immediately. If you sold immediately, you would be making 15% before transaction fees. Lesson: Take advantage of every savings opportunity the company offers.
6. Your wealth is portable. You own these savings and shares you have acquired. If you change jobs or retire, they travel with you. They do not belong to the company. Lesson: You should save as much as you are allowed.
7. Does the organization offer an annuity? Teachers often have the opportunity to buy annuities through their workplace. It becomes another way money can be set aside for retirement. Lesson: Learn about other savings, investment and insurance options. Decide if they are right for you.
8. Do you need an advisor? You wouldn't self-diagnose an illness or represent yourself in court. You would bring in the professionals. When planning for retirement, you should follow the same advice. You may already have a financial advisor or an accountant skilled in financial planning. Our firm has trained professionals with similar backgrounds. Lesson: If you feel you need help in the financial aspects of retirement planning, interview a few professionals, learn how they get paid and choose one you feel is a good match for your situation and personality.

Employees give of themselves for the benefit of their employer. They are paid a salary, but they also may receive benefits. These have a value. You should understand them and take advantage when it's practical.