Can your retirement savings help solve your financing problems?
Gaining access to startup capital is often a huge hurdle. Now many entrepreneurs are turning to companies like BeneTrends Inc., Directed Equity and Equity Trust Co. to get early access to retirement savings--without the normal penalties.
How does it work? Len Fischer, founder of San Diego-based BeneTrends, explains his company's four-step process. First, a C corporation is established for the new business, and a retirement plan is then created under the new C corporation. Next, funds are rolled over from the person's existing retirement plan into the C corporation's new retirement plan. Finally, the new retirement plan purchases stock in the C corporation, leaving the capital in the business owner's hands. This process takes about two to four weeks and costs $4,800 plus state filing fees.
Continue reading this article -- and everything on Entrepreneur!
Become a member to get unlimited access and support the voices you want to hear more from. Get full access to Entrepreneur for just $5!
Get 3 months free with code ZENDESK
Presented by zendesk