Retirement Investments Columbia SC

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 Columbia, SC that can help answer your questions about Retirement Investments.

Cheryl Holland
Abacus Planning Group, Inc.
(803) 933-0054
2500 Devine Street
Columbia, SC
Expertises
Planning Issues for Business Owners, Financial Issues Between Generations, Retirement Planning & Distribution Rules, Advising Medical Professionals, Helping Clients Identify & Achieve Goals, Ongoing Investment Management
Certifications
NAPFA Registered Financial Advisor, BA, CFP®

Laura Scharr-Bykowsky
Ascend Financial Planning, LLC
(803) 331-3721
556 Regatta Road
Columbia, SC
Expertises
Hourly Financial Planning Services, Helping Clients Identify & Achieve Goals, College/Education Planning, Retirement Plan Investment Advice, Investment Advice without Ongoing Management, Women's Financial Planning Issues
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Ione H. Cockrell, CFP®
(803) 254-4899
914 Richland St
Columbia, SC
Firm
Ione Hendrix Cockrell Insuranc

Data Provided by:
Mr. Christopher B. Sloop, CFP®
(803) 741-1001
1320 Main St Ste 700
Columbia, SC
Firm
Creative Financial Strategies
Areas of Specialization
Asset Allocation, Business Succession Planning, Education Planning, Employee and Employer Plan Benefits, Estate Planning, General Financial Planning, Insurance Planning
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: Not Applicable

Profession: Self-Employed Business Owners

Data Provided by:
Mr. David R. Kornegay, CFP®
(843) 224-0347
3710 Landmark Dr Ste 104
Columbia, SC
Firm
VALIC

Data Provided by:
R. Edward Powell
Powell Financial Advisors
(803) 929-0100
433 Hampton Creek Court
Columbia, SC
Expertises
Ongoing Investment Management, Helping Clients Identify & Achieve Goals, Middle Income Client Needs, Retirement Planning & Distribution Rules
Certifications
NAPFA Registered Financial Advisor, CFP®, MBA

Mrs. Barbara H. Saylor, CFP®
(803) 252-0606
1611 Devonshire Dr Ste 100
Columbia, SC
Firm
Palmetto Wealth Advisors, LLC
Areas of Specialization
Asset Allocation, Budget Development, Business Succession Planning, Comprehensive Financial Planning, Divorce Issues, Education Planning, Investment Management

Data Provided by:
Ms. Ashleigh Jenkins Brooker, CFP®
(803) 724-1235
1320 Main St Ste 300
Columbia, SC
Firm
A.J. Brooker Financial Assoiciates, LLC
Areas of Specialization
Comprehensive Financial Planning, Investment Planning, Life Transitions, Retirement Income Management, Retirement Planning, Women's Finances, Young Professionals
Key Considerations
Average Net Worth: $500,001 - $1,000,000

Average Income: $100,001 - $250,000



Data Provided by:
Mr. Robert G. Davidson Jr., CFP®
(803) 343-8800
1320 Main St Ste 800
Columbia, SC
Firm
Morgan Stanley Smith Barney

Data Provided by:
Mr. David M. Kirkpatrick Jr., CFP®
(803) 929-2026
1221 Main St.
Columbia, SC
Firm
Synovus Trust Company, N.A.

Data Provided by:
Data Provided by:

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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