Have you met ROBS?
You have to admit for the financial services industry, this is a pretty cool name for financial product. But not to worry, this is nothing out of the ordinary. ROBS are not a new instrument that you have to be concerned with. In fact, ROBS or ROB is an acronym for Rollover for Business StartUp Program). It's also known for by it's more common names such as; IRA Rollover and Self Directed 401(k).
The beauty in this is that you are able to use either of these vehicles to invest in the following;
What makes this very beneficial is that you won't have to worry because you are able to utilize these funds Tax-Deferred and penalty free.
Most startup businesses rely on the use of lines of credit or start up loans called "micro" lending. But through ROBS these equity injections are not considered loans at all.
Let's Talk Benefits
Business owners, friends and colleagues can now use this financial advantage to invest or offer capital to partner, grow or sustain an existing business. In the past in order to do this you would inherit a ton of liability and fees associated with adding capital to another business.
Flexibility through diversification. By being able to take control of your retirement you can now pin point the assets or businesses that you would like to invest in. This could be your local small business coffee shop or your grandson's new start up business. You can know back your business and retirement.
You'll be surprised on how many middle age clients that we speak to who want to start a business once they leave corporate America. For many they are captured to leave their money in the rollercoaster of stock options and their ex-employer's holdings. ROB grants the opportunity to go out and bet on yourself. Start that business you always wanted.
You're now given the same ability that you had in investing as a employee to your company just like that of another corporation, franchise or small business.
How To Structure ROB
Like many things in finance, you want to make sure that you have everything structured properly. So here are some key factors to be aware of;