May 8, 2009
In today’s era of high unemployment and tight credit markets, many early retirees and downsized executives are choosing to utilizing their 401K or IRA as a funding source to purchase a business. Using a 401K or IRA has several advantages over traditional debt financing:
1. Reduction of principal and interest payment for the corresponding amount of dept replaced by the 401K or IRA investment.
2. Reduced debt creates opportunities for additional funding for your business.
3. Reduced debt always correlates to a higher probability of success.
4. Tax deferment of capital gains from eventual sale of business because the proceeds go back to your 401K or IRA.
If you are interested in utilizing a portion of your 401K or IRA to fund a business acquisition, I have several great companies to handle the process from start to finish. Contact me for more information. Call or email me at 800-599-0503 or eric@bluechipbizsolutions.com.
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