Response: "A qualified retirement plan does not have to be a big expense. It can be arranged so that you're only contributing the amount you feel your business can comfortably afford. In fact, it is usually best to start out modestly and increase your commitment later.

"You'll be paying yourselves first. That's important to remember when deciding how much your company can reasonably afford."

Objection: "Do all of my employees have to be covered?"

Response: "Under the rules, qualified plans have to cover all full-time employees over age 21 who have at least one year of service.

"We can set up a 'top heavy' plan so that you and other highly paid employees will benefit the most. If so, your rank-and-file workers have to be given some favorable treatment of their own. We can look at that, or we can consider a selective executive benefit plan which would let you take money out of your business for retirement without having to cover everyone."

Objection: "Who would administer this plan?"

Response: "You'd be the plan sponsor, so it would be your responsibility to administer it. But, you have some options. If a plan is simple enough, a CPA or accountant may be able to maintain the required records and annual filings. If a plan is more complicated, however, you would probably want to get a professional plan administrator involved locally. We can help."

Objection: "Why have life insurance in a retirement plan?"

Response: "Most of us need the insurance protection. Doesn't it make sense to pay for it with before-tax dollars?"

Objection: "How do we know how much life insurance to buy?"

Response: "Pension rules determine how much life insurance is allowed in a qualified plan. The bigger question is: How much protection do you want or need? To answer that, we should consider your personal situation and financial security objectives."