Start Your Biz With Your Retirement Funds? No Penalty, No Interest Per IRS
Ted Fireman - Franchise First Responder - Wisdom - Not Cheerleading
You can design and love your life. I help you find the right match and mitigate risk.
Why Use Rollover As Business Startups?
Dreaming of becoming a business owner but feel you don’t have enough money? If so, there is a surprising solution that could solve your problem – using your retirement funds – better known as 401(k) business financing or Rollover as Business Startups (ROBS). Just like business ownership itself, this isn't for everyone.
Before you get nervous about depleting your retirement fund, read on. ROBS can allow you to use your retirement money to fund your company without early withdrawal fees and tax penalties. And, as your company performs well, your profits can go back into the account to provide retirement funds for both you and your employees.?Here are a?few more?reasons why ROBS may be a smart choice for you.
1. ROBS allows you to have control over how funds would perform.?This way, you can avoid having funds in the volatile market.
2. You are offered the opportunity to get into business without going into debt.
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3. ROBS can be completed in about three weeks.?This is?a significant benefit to someone buying a business in a competitive environment.
4. ROBS is also much easier to get because it’s using your own money.?Unlike other types of funding methods, your credit score, past experience, or on-hand collateral won’t impact your ability to get the funds.
While ROBS may seem too good to be true, there is a caveat. As with any investment, there is some risk of losing the funds if your business doesn’t do well. The good news about this risk is that you have the power to control it to an extent. If you do your research upfront and have solid business plans that you are extremely confident in, the risk is fairly low. One great way to reduce the risk is to use the money to invest in a franchise, which already has a proven track record of success.
Find Out If ROBS Is Right for You
?If these philosophies resonate with you and ROBS seems like an appealing option, you’re probably wondering if it would work for you and how much money you need in your retirement account to set one up. You can speak with your local consultant to find out if ROBS is right for you.