KANSAS CITY, MO — (Marketwired) — 10/25/13 — A posted by USA Today explored one of the latest risky baby boomer trends, retirees using 401(k) or IRA savings to fund their dream businesses. According to , using retirement assets for such a venture dramatically shifts the balance between risk and reward, but baby boomers can even things out by following some simple advice.
Free white paper to download:
Sanders said, “We have had several clients use this sort of funding mechanism in order to start their business ventures. For anyone thinking of funding a start up business in this manner, there are two fundamental issues to consider. First, . This includes the type of entity structure used to form the business. One wrong move and you can cost yourself thousands in taxes and penalties. Second, keep in mind that you are . Your entire retirement future is dependent on the success of the business venture. If you feel that you must use retirement assets, . Treat the business venture as just another asset in a well-diversified retirement portfolio,” said Sanders.
The provided similar advice, saying that a general rule was that those who experienced financial success in this manner were the people who did homework. Consulting a could also aid in balancing the risks and rewards.
is an independent registered investment advisory firm based in Overland Park, Kan. with a history of providing investment services to institutional investors, private companies and affluent families. Like ONE Retirement on , follow the company on or read the for more information about retirement planning tips and free white papers, webinars and resources.
Contact:
Valerie Jennings
816.212.1040