Starting a new business can be an expensive process and franchise funding can be hard to obtain. However, a well run and successful business is an investment in your own future, and that of your family. When it comes to franchising, you can access your retirement funds to help finance your business – this is a much cheaper alternative to paying high interest rates on business loans, if you can source them.
That is one of the hardest problems for those looking to buy a franchise opportunity. Lenders can be wary when it comes to lending money for new business ventures, even franchises. They want business plans, financial plans, and sometimes even security like the equity you have in your own home. By converting your retirement fund into a self-managed type plan, you can invest those funds in your business.
Guidant Financial and American IRA and 401k Retirement Plan are two financial service businesses that can help you convert those retirement plans to self managed retirement funds. There are similar services around, however, they rely on lending you capital using your retirement funds as security. Should you default on those loans, you will have huge tax implications on the early access to your retirements funds.
By converting your retirement funds to self managed (or corporation) retirement funds, you are avoiding any tax or early access problems, avoiding new debt and the accompanying interest, yet building more wealth for your retirement. At the same time, you are becoming your own boss and building your own business.
Franchises are a perfect vehicle for the investment of your retirement funds since you are buying into proven business models. Franchises are seven times more likely to succeed than non-franchise new businesses, so your investment is a much lower risk. Looking to buy a franchise opportunity? Use your own retirement savings to fund the venture.
