Statistics indicate that more than one million people in the United States to start a new business every year. That would be the number much higher if all would-be entrepreneurs the necessary funding to get the business up and running. In order to achieve their dream of owning a business, the business and finding new and innovative ways to finance new projects.
According to Leonard Fisher, President / CEO of BeneTrends, and one of these options new funding is to use a retirement present person funds pension and profit sharing, 401 (k), IRA-which allows a person to start a business he or she always dreamed of without penalties tax, or the consequences of the mountains of debt.
Under Retirement Income Security Act Employment (ERISA), pension funds can be transferred in the capital usable for corporate investments or operations. If a person has more than $ 40,000 in a retirement account and is currently being used by the companies that own those funds, he or she is eligible for the Small Business Administration (SBA) recognized approach to financing to start a business.
Pension funds can be used for any commercial purpose, including:
• Buying a franchise or an existing business
• Start expenses, such as the purchase of property and equipment and other
• Working capital, including the payment of salaries, royalties, etc.
• Expansion of the business, such as additional funding privileges, locations, etc.
• Equity toward SBA or other loans.
Think of dipping into retirement and one that can cause some apprehension. Through this strategic investment per capita in fact more control over his / her retirement instead of getting a minimum of growth depends on the stock market, is in fact that savings are invested in private business. This approach often allows an individual to allocate more money for retirement than ever.
“Man facing today’s business environment of competition, complexity and enormous opportunity, so start the business in the right way is more important than ever,” says Dr. Germain Boer, director of Vanderbilt University’s Center for Entrepreneurship. “This method of funding is a good choice for people who have accumulated money in / calculations her retirement.”
The entire process generally takes 2-4 weeks to be completed, and this can be done by phone, e-mail, fax, FedEx and regular mail.
Working with an experienced employee benefits expert plan, starting a business is as simple as these four steps:
Step 1: Create a C-sorporation
Step 2: Foundation creates a new retirement plan.
Step 3: and rolled over the funds in the plan for the new retirement Foundation.
Step 4: The new retirement plan to purchase securities of the company.
“A lot of people have seen their dream of owning their own business out of the window because of the lack of financing options. We help people achieve this dream every day using the money they already have,” says Fisher.
If you are willing to explore innovative financing this option, be sure to consult an expert to guide you through the process specialist.
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