Retirement Investments Charlotte NC

This page provides relevant content and local businesses that can help with your search for information on Retirement Investments. You will find informative articles about Retirement Investments, including "Investing Retirement Funds in a Business or Franchise". Below you will also find local businesses that may provide the products or services you are looking for. Please scroll down to find the local resources in Charlotte, NC that can help answer your questions about Retirement Investments.
Jonie Parks
Matrix Wealth Advisors, Inc.
(800) 493-3323
831 East Morehead Street, Suite 760
Charlotte, NC
Marilyn Spencer
Rinehart Wealth Management
(704) 374-0646
521 E. Morehead Street, Suite 580
Charlotte, NC
Brian Terry
Cornerstone Financial Planners, LLC
(704) 906-2919
3533 Keithcastle Court
Charlotte, NC
Karen Keatley
Keatley Wealth Management, LLC
(704) 540-5535
3514 Kingsmeade Court
Charlotte, NC
John Gugle
Alpha Financial Advisors, LLC
(704) 716-1100
13925 Ballantyne Corporate Place, Suite 280
Charlotte, NC
Giles Almond
Matrix Wealth Advisors, Inc.
(800) 493-3323
831 East Morehead Street, Suite 760
Charlotte, NC
Cheryl Sherrard
Rinehart Wealth Management
(704) 374-0646
521 E. Morehead Street, Suite 580
Charlotte, NC
Brian Fenn
Carolina Capital Consulting, Inc.
(704) 541-3199
3111 Springbank Lane, Suite B
Charlotte, NC
William Ertel
Tassel Capital Management, Inc.
(704) 814-6780
1258 Mann Drive, Suite 200
Matthews, NC
Daniel Grover
Ronald Blue & Co., LLC
(704) 759-9060
10706 Sikes Place, Suite 175
Charlotte, NC
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Investing Retirement Funds in a Business or Franchise

retirement funds small business
Growing numbers of small business and franchise entrepreneurs are discovering that their retirement assets can be diversified into investments outside of the stock market. They’re finding that, through a vehicle commonly referred to as Rollover as Business Start-ups (ROBS), they are allowed to legally invest 401(k) money in their own small business without taking a taxable distribution or getting a loan. It’s estimated that in 2010, more than 4,000 individuals will become entrepreneurs by investing their existing retirement assets into a business – and in turn – will create more than 25,000 jobs.

Entrepreneurs who work with expert companies to correctly complete a private investment in their own company often cite this “investment in oneself” as especially attractive since they wholeheartedly believe in their ability to open, operate and successfully lead a business. Another reason this type of transaction is attractive to an entrepreneur is because they can invest in their business without getting a loan. This means that the new business can reinvest the initial cash flow into the business instead of sending it off to a bank in the form of interest payments. It is reasonable to assume that a business that is not servicing high interest loans has a shorter “runway” to reach profitability. Guidant Financial reports that its clients are 63% more likely to succeed than other traditional business owners.

ROBS transactions generally involve four or five steps which, although complex, can potentially be completed in less than three weeks. The process generally includes the following steps:

  1. A new business entity, a C corporation is formed on the client’s behalf
  2. The client then rolls up to 100% of their eligible retirement funds into a newly created 401(k) plan;
  3. This plan, in turn, invests in the stock of the new corporation;
  4. The corporation, now flush with funds and free of debt acquires a small business or franchise.

There are many reasons that an entrepreneur would choose to invest in their own business. Reasons may include, but are not limited to:

  • They believe a small business they own and control is the best investment for their retirement plan.
  • They receive a debt-free equity injection into the enterprise;
  • They can provide their employees (including them) with a 401(k) plan, a benefit rarely seen in American small business today

The legal requirements for establishing and operating 401(k) plans were created under the Employee and Retirement Income Security Act (ERISA), which identifies the guidelines for 401(k) plan investments. These 401(k) plans, also called pension plans, are carefully protected by the IRS and DOL, so all transactions involving them need to ultimately benefit of the plan.

ROBS transactions are increasing in popularity, especially in a financial climate unfriendly to borrowers. Yet they’re still misunderstood by far too many...

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