If we work for a brand-new startup, chances are good that our organization doesn’t have a ton of extra cash to invest in things like employee retirement accounts. But that doesn’t mean they can’t offer one just the same.
In some situations, companies can go the “leveraged benefits” route. In a nutshell, the organization’s retirement plan is indirectly funded by a loan the company has taken out. In other words, our retirement benefits are leveraged.
It’s just like when a business takes out a loan to do anything else...like, develop a new product or build a new facility. It’s just that, in this instance, the thing they’ve taken out a loan to fund...is our retirement plan.
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