Home Advertise Contact Blog Advertiser Login RSS
Newsletter Signup

Business Opportunities to Own
Home-Based Businesses
Choosing a Business Opportunity Growth and Profit Marketing and Sales
Plans and Goals Running Your Own Business Start-Up
Working From Home Entrepreneur Exchange Feature Articles
Opportunity Community Opportunity Focus In The News

Young Entrepreneurs Start-Up Advice —the best advice, helpful tips, and questions for the aspiring, young business owner.

To help you decide if you're ready to start a business, we’ve complied the best young...
Everyone will be hearing a lot from the newest addition to our staff: Digital Marketing Manager Hired Margaret Mallonée! This hire was a strategic move to enhance our staff for the new digital media platform we will be introducing in the weeks and months to come. Chicago,...

Slammed last year by what will surely be one of the most expensive and devastating natural disasters to ever hit the Northeast, millions of individuals, many of whom are work-at-home or other small business owners, are only now years later truly beginning to recover from the damage that Hurricane...


Sponsors

STARSCAPES®
Imagine making up to $500 to $1,800 a day! Call or click now see how you can get your business for FREE! (602) 679-0257
Promotional Products Home Business
Run Your Own Business. Be Your Own Boss. Earn Great Profit Potential. Start At A Low Cost. Try It For Free! Learn More.
Hurricane Recovery Resources for Business Opportunity Owners
in the wake of a crisis of this magnitude can be especially maddening, DisasterAssistance.gov is good place to start...
How Many Leads Does It Take To Close A Sale?
This article is now live on our blog and I know could be very insightful for many. Read On
Residual Income Business Opportunities
Residual Income is the way that you work once and get paid multiple times—sounds great!... Read On
Productivity Hacks — Our Top 50
Productivity Hacks will help you make more from less this 2016. Here at BusinessOpportunity.com we want to... Read On
Top 7 Reasons to Consider a CMS
The internet loves obscure abbreviations. You can skip over most of them, but not CMS. What is CMS? read on...
The Ideal Length of Everything Online, Including Social Media Posts
When one of your busiest marketing channels limits you to 140 characters, you know that the internet sets its own rules.
It Takes a Hot Voicemail to Land a Warm Lead
If you're a successful entrepreneur who provides others like you the chance to follow in your footsteps... Read On
Low Cost Business Opportunities to Own
Are your right for a Low Cost Business Opportunities to Own? The desire to own your own business... Read On
Sales Hack To Increase Your ROI and Productivity
Sales Hack to make you more money! Sales Hacks are not new, but how you use them is. We receive lots of emails.. Read On
The Top 10 Reasons to Buy a Business Opportunity or Franchise
Starting your own small business is part of the American Dream, right up there with owning your own home. Read On
7 Keys to Leading Highly Effective Sales Conversations
Most people's sales conversations could be better. Not a little better, significantly better. Read On
I Want To Buy a Business Opportunity or Franchise
Who are the types of people who buy a business opportunity or small franchise? According to people in... Read on
 
Resource Center > Article
Older Entrepreneurs Use Creative Financing to Make the Most of Today’s Business Opportunities
16 Oct 13 Posted by: Kathleen C Lanza
in Featured Articles
Share this Article:

According to the latest Kauffman Foundation report on entrepreneurial activity, the percentage of new entrepreneurs between the ages of 55 and 64 has grown from 14.3 percent in 1996 to 23.4 percent last year, and entrepreneurship among 45-to-54-year-olds is also on the rise. In fact, according to the Bureau of Labor Statistics, those 65 and older have the highest rate of self-employment today.

Kauffman IndexA

Perhaps this is not surprising given that so many of us are living longer and healthier lives than ever before. That coupled with the fact that recent economic challenges have made it nearly impossible for many older people to retire altogether is what is driving this relatively new yet steady trend. Plus, let’s not forget all the newest technologies that now make it easier for anybody to own and operate their own business opportunity, distributorship, licensee opportunity, small franchise or other small business, oftentimes from the comfort of a work-at-home office and with little to no overhead.

For many so-called baby boomers born between 1946 and 1964, having the opportunity to start a small business represents a kind of freedom and independence that they’ve never had before and that they now welcome. For others, it’s become a matter of necessity. Either way, for far too many older people who are on a fixed or dwindling income even relatively reasonable startup costs can make business ownership seem out of reach.

But the picture may not be as dreary as it seems.

For older individuals who want to be business owners and have retirement savings, but who do not have cash in hand, there is an option you may not have heard about.

It’s called a ROBS. ROBS stands for ROllover Business Start-up, and while it does involve tapping into your retirement funds, the rules are a little different when you’re using the money to start a business or buy one. In fact, the ROBS option does not subject you to the same restrictions as would be the case with a self-directed IRA.

Here’s the much simplified version of how it goes…

If you have a 401(k) or IRA funds, the IRS will allow you to roll money over into a new 401(k) for the purpose of business startup or purchase, and it is then used to buy qualifying employer securities in a newly created C Corporation. As the fund’s owner, you are then allowed to be actively involved in the business, to draw a salary, guarantee a business loan and provide jobs for family members working under the auspices of a “family-owned” business.

Yesitshould

Now, one of the upsides to the ROBS approach is that you can use the full amount of the 401(k) money for the business without paying taxes on it at the time and without paying a withdrawal penalty. However, there is a downside. Given that you must be set up as a C Corporation, you may be subject to higher taxes than you would as either an S Corporation or an LLC.

Of course, there are other options other than the ROBS. A safer bet is to simply take a loan from your existing 401(k), which can be as much as half of its value or up to $50,000, whichever is less. However, it will have to be repaid within five years in quarterly payments. In essence, you give yourself a loan, but you’re told when and how you must pay it back.

Or, you can also elect to take a large disbursement out of your account, but only if you’re willing and able to pay the taxes on that money, as well as the 10 percent penalty. And that’s something few people over the age of 55 or so can afford or want to do these days.

While it’s true that buying a business opportunity or starting any small business is a risky venture, the payoff in terms of self-fulfillment alone can make it all worthwhile. If you’re older and do have retirement savings that you’d consider tapping into to get a business going, the key is to find a skilled financial advisor who can educate you on what your options are and then guide you through the process.

Thankfully, for those who are determined to be entrepreneurs and who have the passion and skill set to take a gamble on themselves, no matter what their age, there are creative funding options out there. Just knowing what they are so that you can ask all the right questions is half the battle.

Related Blog Posts
22 Sep 17 Posted by: Margaret Mallonée
in Featured Articles

Young Entrepreneurs Start-Up Advice —the best advice, helpful tips, and questions for the aspiring, young business owner.

To help you decide if you're ready to start a business, we’ve complied the best young...
14 Sep 17 Posted by: Kevin James Culp
in Featured Articles
Everyone will be hearing a lot from the newest addition to our staff: Digital Marketing Manager Hired Margaret Mallonée! This hire was a strategic move to enhance our staff for the new digital media platform we will be introducing in the weeks and months to come. Chicago,...
3 Sep 17 Posted by: Kathleen C Lanza
in Featured Articles

Slammed last year by what will surely be one of the most expensive and devastating natural disasters to ever hit the Northeast, millions of individuals, many of whom are work-at-home or other small business owners, are only now years later truly beginning to recover from the damage that Hurricane...

23 Aug 17 Posted by: Kevin James Culp
in Featured Articles

Marketing pumps leads and buyers into your business. There are multiple types of marketing methods, from paid advertising to social media. One of the most efficient is called drip marketing.

Here is a quick guide to drip marketing, an effective way to nurture leads using the power of automation. What...
18 Aug 17 Posted by: Kevin James Culp
in Featured Articles

Do you look around at your cubicle and dream of the day when you view the world from your yacht? You can do it, if you follow the right steps.

The dreamer’s road from wage slave to millennial millionaire is paved with hopeful thoughts. The winner’s road is built with one tiny change after another,...
 
   

I had the pleasure of setting down with Edwin Shoffner, CEO with Mattress by Appointment for BusinessOpportunity.com's very first Podcast that will be released on our new Digital Platform very soon.  Here is the transcript from that call for...
Read More

Video Spotlight

Virtual Financial A Home Business in Financial Services You are going to want to see this Video!

Virtual Financial Group


Premium Sponsor