That would be novel. Sounds too good to be true!
Well, it can be done - you simply use the money you already have accumulated in your retirement accounts - i.e. your IRA or 401(k) or any rollover-able account. You essentially direct these funds to be invested in you or your business.
By law, you can use your retirement funds (your IRAs, 401(k)s, 403(b)s, Keoghs, SEPs, etc) and invest that money (or any part of it) in a business (any business) - including your own.
All without tax or distribution penalties! All without credit checks, income verifications, collateral, or personal guarantees.
You can even use those funds as the equity down payment on a bigger business loan like a bank loan or SBA loan or, better yet, use YOUR funds to buy a business or that franchise you have had your eye on.
So, why would you risk your retirement savings? Think about it this way. Your IRA or 401(k) will only grow when the markets grow. If (that is a big if) - if the markets are growing, your portfolio may grow anywhere from 5% to 15% per year on average. OK - not too bad if you do not have any other options for your money.
But, what if you could double your money in the first year? Would that not be better - a better return on your investment or in your retirement account?
What about tripling your money in three to five years - that would be far better than growing your money at say 5% or even 15% - if the market is in an up swing. In fact, to triple your money at, let's take the higher number and say 15% per year, it would take you nearly 8 years to do so - 23 years at 5%. That is a long time when you could be investing in you - growing those funds at a much faster rate.
There are many rules in finance - some vague and some unrelated but, the number one rule in all of finance (regardless if it is for your person or your business) is to put your money where it will earn the biggest return (the biggest bang for your buck - so to say).
Anything else is a waste. Thus, if you can only earn 5% on your money leaving your funds in your current retirement account or 100% return using those funds to start or grow your business or purchase a franchise - then the 100% options is always better.
To earn that return, all you have to do is believe in yourself.
Further, most of these retirement plans - IRAs, 401(k)s, 403(b)s, Keoghs, SEPs, etc. - are managed by people or groups you have never met. And, if the latest corruption and greed on Wall Street is any measure of what those people are currently doing with your retirement money, then these so-called managers are more interested in investing YOUR MONEY in ways that help them (like their fees and commissions) then in ensuring your accounts receive the greatest benefit.
You can solve this issue by taking charge of your investments and your own accounts - ensuring that every single dime is working for your greater good.
Moreover, in conjunction to increasing your retirement assets, you also get to run your own business. Earning a larger salary and building your own wealth. Working for yourself and becoming financially independent - your way.
One last thought here: Other entrepreneurs who tapped their retirement accounts and invested in both themselves and their businesses have much less failure rates than other entrepreneurs starting businesses today. Why? 1) they believe in their selves and their ability to make their businesses work and 2) they are less likely to just walk away - they tend to work harder to ensure that their dreams do actually come true.
Are you one of those entrepreneurs or one of the failures?
Article Source: http://EzineArticles.com/6121623
