Mr. Wizdom

Mr. Wizdom Experience what Wizdom can do for you & your business His dedication to his clients is matched by his commitment to his family.

Gregg Pajak, ChFC, is the visionary co-founder of the WizdomOne Group family of companies, dedicated to inspiring and empowering business owners through comprehensive wealth management, insurance, and benefits solutions. With over two decades of experience as a wealth advisor specializing in working with business owners, Gregg’s unique insights are shaped by both his professional expertise and his

personal journey with his wife as successful entrepreneurs of a portfolio of businesses. Gregg’s career began as the Agency Benefits Director for the MetLife Premier Client Group, where he led the benefits and group retirement division. In 2008, he founded the WizdomOne Group, which has since grown to include several successful startups and businesses, including Wizdom Wealth, which was established to streamline investment-related services for business owners. As a Certified Financial Fiduciary® and Chartered Financial Consultant, Gregg frequently shares his knowledge and passion for financial wellness at industry events, speaking fluently in two languages. Married to his high school sweetheart since 2001, Gregg and his wife are raising three active children in Nissequogue, NY. Outside of work, he enjoys hiking, kayaking, and staying active by playing hockey, while cheering on his beloved Boston Bruins.

“Entrepreneurship is living a few years of your life like most people won’t so you can spend the rest of your life like most people can't.”

Stocks were mixed last week as investors fretted over hot inflation reports, which offset the move in chipmaker stocks. ...
05/19/2026

Stocks were mixed last week as investors fretted over hot inflation reports, which offset the move in chipmaker stocks. The Standard & Poor’s 500 Index rose 0.13 percent, while the Nasdaq Composite Index edged down 0.08 percent. The...

The decision between Safe Harbor and traditional 401(k) comes down to testing risk versus mandatory cost. Traditional pl...
05/15/2026

The decision between Safe Harbor and traditional 401(k) comes down to testing risk versus mandatory cost. Traditional plans let you skip employer contributions in lean years but risk forcing owners to receive refunds if testing fails. Safe Harbor requires mandatory contributions (3-4% of payroll) but guarantees owners can defer the full $23,500 without testing risk.

The Testing Problem for Owners:
Traditional 401(k)s require annual ADP/ACP testing comparing highly compensated employees (owners, executives earning $155,000+) to other employees. If the gap is too large, owners receive taxable refunds of their contributions. You planned on $23,500 in tax-deferred savings but testing forces you to take back $10,000-$15,000 as taxable income. You lost a year of retirement savings and owe taxes on the refund.

Safe Harbor Solves This:
Safe Harbor plans automatically pass testing if you make mandatory employer contributions—either 4% match maximum or 3% nonelective to all employees. Owners can defer the full $23,500 regardless of employee participation. The trade-off: you must make the employer contribution every year, even in lean years.

When Each Makes Sense:
Safe Harbor works when owner compensation is high relative to employees, when testing would likely fail, or when guaranteed maximum owner deferrals matter more than contribution flexibility. Traditional works when employee participation is already high (testing would pass naturally), owner compensation is lower, or profit margins can't support mandatory contributions.

The Simple Calculation:
If you earn $200,000 and want to defer $23,500, Safe Harbor costs approximately $8,000 in mandatory employer contributions but you keep your full deferral. Traditional might let you skip employer contributions but could force you to return $10,000+ of your deferral. For most high-earning business owners, Safe Harbor's predictable cost beats traditional's refund risk.

Contact us at wizdomwealth.com to evaluate which design fits your business.

Stocks rose last week as peace talks picked up while investors cheered better-than-expected economic news and Q1 corpora...
05/13/2026

Stocks rose last week as peace talks picked up while investors cheered better-than-expected economic news and Q1 corporate results. The Standard & Poor’s 500 Index advanced 2.33 percent, while the Nasdaq Composite Index rose 4.51...

Vesting schedules create a direct trade-off for business owners between lower costs and stronger recruiting. Longer sche...
05/08/2026

Vesting schedules create a direct trade-off for business owners between lower costs and stronger recruiting. Longer schedules (6-year graded vesting) generate forfeitures when employees leave, reducing your overall plan costs by 15-25%. Shorter schedules (3-year cliff or immediate vesting) cost more but signal investment in employees during recruiting.

How Forfeitures Reduce Costs:
When employees leave before fully vested, their unvested employer contributions return to the plan. A 6-year graded schedule means employees own 0% in year 1, then 20% per year. Someone who leaves at year 3 forfeits 40% of all employer contributions made on their behalf. High-turnover businesses recapture significant contributions through forfeitures, lowering net plan costs.

The Recruiting Impact:
Immediate vesting (required for Safe Harbor plans) tells candidates you're investing in them from day one. In competitive labor markets for professional talent, this matters. But it eliminates forfeiture savings. Every dollar contributed is a dollar paid, with no cost recovery when employees leave. Your actual plan costs can run 15-25% higher than budgeted employer contributions when you lose forfeitures.

The Strategic Framework:
High-turnover industries (retail, hospitality, entry-level) benefit from longer vesting schedules that recapture costs when employees leave quickly. Low-turnover professional services competing for talent often choose immediate vesting despite higher costs because recruiting advantage matters more than forfeiture savings.

Your vesting schedule should match your business reality—turnover rates, recruiting challenges, and whether cost minimization or talent attraction is the priority.

Contact us at wizdomwealth.com to evaluate vesting strategies for your plan.

Stocks advanced last week as investors moved past stalled progress in Middle East peace talks and refocused on corporate...
05/06/2026

Stocks advanced last week as investors moved past stalled progress in Middle East peace talks and refocused on corporate earnings.

When you acquire a business with a defined benefit pension plan, you're inheriting an ongoing obligation to fund retirem...
05/01/2026

When you acquire a business with a defined benefit pension plan, you're inheriting an ongoing obligation to fund retirement benefits that can cost hundreds of thousands of dollars beyond the purchase price. Many buyers discover pension liabilities too late in due diligence, after the purchase price is already negotiated.

What You're Actually Buying:
A pension plan might show $2 million in assets but owe $3 million in future benefits based on actuarial calculations. That $1 million unfunded liability becomes your cash obligation—you must contribute to close the gap or face PBGC penalties. Even fully funded pensions require ongoing contributions as employees earn benefits and investment returns fluctuate.

The Ongoing Costs:
Annual actuarial valuations ($2,000-$5,000), PBGC premiums ($98 per participant plus variable rates for underfunding—potentially $5,000-$15,000+ annually), and mandatory contributions regardless of business performance. Market downturns can require $50,000-$100,000+ in unexpected contributions to maintain minimum funding. You can't skip these obligations in lean years like you can with 401(k) profit-sharing.

Your Options:
Freeze the plan (stop new benefits, maintain existing obligations), terminate it (requires full funding or PBGC takeover if underfunded), or continue funding. Termination sounds simple but can require massive cash infusions to satisfy all obligations immediately. Freezing reduces future costs but maintains existing liabilities for decades.

Critical Due Diligence:
Before closing, obtain actuarial reports showing funded status, review PBGC filings and premium history, understand required contributions for the next 3-5 years, and factor pension obligations into purchase price negotiations. Pension liabilities should reduce what you're willing to pay, not surprise you after closing.

Contact us at wizdomwealth.com before acquiring a business with pension obligations.

Stocks were mixed last week as investors gauged potential outcomes of the Middle East conflict amid an ongoing ceasefire...
04/29/2026

Stocks were mixed last week as investors gauged potential outcomes of the Middle East conflict amid an ongoing ceasefire.The Standard & Poor’s 500 Index rose 0.55 percent, while the Nasdaq Composite Index advanced 1.50 percent. By...

Market timing requires a skill that’s almost impossible to master.
04/24/2026

Market timing requires a skill that’s almost impossible to master.

Before 1998, 401(k) plans required annual nondiscrimination testing that often forced business owners and highly paid em...
04/24/2026

Before 1998, 401(k) plans required annual nondiscrimination testing that often forced business owners and highly paid employees to receive refunds of their contributions. If rank-and-file employees didn't participate at high enough rates, the plan failed testing and owners couldn't contribute the full amount.

The Safe Harbor Solution:
The IRS Restructuring and Reform Act of 1998 created Safe Harbor 401(k)s to solve this problem. Plans that make mandatory employer contributions vesting immediately automatically pass nondiscrimination testing. No ADP test, no ACP test, no refund risk for highly compensated employees.

The Required Contribution:
Employers must choose: (1) Basic match of 100% on first 3% of pay deferred plus 50% on next 2% (maximum 4% cost if all employees defer 5%), or (2) 3% nonelective contribution to all eligible employees whether they contribute or not. Contributions must vest 100% immediately with no waiting period.

The Trade-Off:
Safe Harbor eliminates testing complexity but requires mandatory contributions every year. You can't skip contributions in lean years like traditional profit-sharing allows. For most small businesses with owners who want to maximize their own contributions, the mandatory cost is worth avoiding testing failures and refunds.

Why It Became Popular:
Safe Harbor plans now represent a significant portion of all 401(k)s because they solve the core problem small business owners face: how to contribute the maximum for themselves without complex testing that might force refunds. The predictable cost (approximately 4% of payroll) and administrative simplification made Safe Harbor the default choice for many businesses.

Contact us at wizdomwealth.com to explore whether Safe Harbor design fits your business.

Hope won out over fear last week as investors set their sights on a Middle East ceasefire holding and optimistic prospec...
04/14/2026

Hope won out over fear last week as investors set their sights on a Middle East ceasefire holding and optimistic prospects for the Strait of Hormuz reopening.The Standard & Poor’s 500 Index rose 3.56 percent, while the Nasdaq Composite...

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