Raise Money Using a Self-Directed IRA This clever twist on retirement fund investing could draw the patient investors business owners love. By: Asheesh Advani | Entrepreneur.com Published: Saturday, May 11, 2007 If you believe in your business and think it has the potential to be a long-term success, why not make an investment in it using your retirement plan? Can it be done? You bet it can, using a so-called "self-directed IRA." To be clear, this isn't the same as borrowing from your 401(k) or your spouse's retirement savings. In previous columns, I have cautioned entrepreneurs against borrowing heavily from retirement assets. Instead, raising money by using a self-directed IRA is the opposite; it involves putting your company's stock into a retirement plan to protect its capital gains. In my opinion, self-directed IRAs are an underappreciated tool for allowing entrepreneurs--and their friends--to invest retirement funds into a startup. As always, take care to do it right and to not cross the IRS. But investing funds from your self-directed IRA into your business is a viable and potentially wise alternative you should consider. In fact, your siblings, friends and business associates can also invest in your business from their retirement funds and ensure their capital gains get favorable tax treatment. This could make an otherwise break-even investment proposition seem more attractive. CLICK ARTICLE #1 AT THE TOP TO READ MORE. |
Finance Your Franchise With Retirement Funds |
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By: Jeff Elgin | Entrepreneur.com |
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There just isn't any financing available! That's the refrain everyone hears when discussing the biggest issue facing people who want to open a franchise in the current economic climate. The fact is that there is more truth to this statement than anyone in the government or banking business wants to admit, and it doesn't look like it is going to change anytime soon--at least as far as traditional loan sources are concerned. Standard bank loans, loans secured by the equity in one's home, SBA loans--these are all things of the past for most people. So, what's an aspiring franchisee to do? Well, there is a ready solution that is being used more and more every day. It allows people to fund their business ownership dreams using the dollars they have built over time in their qualified retirement accounts--an untapped source of investment capital that most people haven't even thought of. Imagine funding your franchise without incurring any debt or having to pay interest. You can invest in yourself and retain a great deal of control over how successful that investment ultimately becomes. CLICK ARTICLE #2 AT THE TOP TO READ MORE |
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