Three Reasons To Create Your ROBS Business NOW (and One Not To) | Frank Selden Law

Three Reasons To Create Your ROBS Business NOW (and One Not To)

A caller inquired about whether I believe our current economic uncertainty is a good time to initiate a ROBS setup. Here are three reasons why this could be a great time to start a business with your own retirement funds and one reason to hold back. He decided to move forward. Here's why.


Create your Own Stock Market

Some people hold off with a ROBS setup because the market is going up, others because it is going down. People who choose to invest their retirement dollars into their business know that their funds are moving from a market they don’t control into a business for which they hold the ultimate responsibility. When your company does well, your plan investment grows. If your company fails, you lose your retirement. A few clients realized 3000 - 5000% return on their initial investment when they sold their companies.


Can’t be Fired or Laid Off

I enjoyed a career in banking until a merger in 2000 eliminated my position. I decided to go to law school, practice financial law, and take control of my career. Second best decision I’ve ever made. Outsourced? Downsized? Reorged? I understand. Now, the only people who can fire me are clients. In 16 years since starting my own business, that’s never happened, because we strive to take care of clients better than any of our competition. Does owning your own business guarantee success? Far from it. It just puts you in charge of your own path.


If Your Business Idea Makes Sense

One of our recent clients originally decided to open a taproom. In California. Now that such businesses are closed to protect people from Covid-19, he switched to a business that is projected to do well even in this economy. Some financial analysts tell people to buy when stocks are low or at a bargain. The same can be true of businesses. Some businesses are being sold right now for less than before the virus scares. If the business idea makes sense, it might be the best time to buy.


One Reason To Hold Off

If the combination of the business concept, location, and funds available does not add up to at least reasonably viable, then don’t create your business now. Perhaps consider a different business idea or other ways of attracting financing. Or just say no. For now.


How To Go For Your WIN

However, if you are starting a new business, buying an existing one, or injecting capital into a business you already own, investing your own retirement dollars can be a great way to find the capital you need, get your retirement invested into a more stable private investment, and create your own livelihood. Triple win!

I create ROBS arrangements through 401K ROBS PROS. Click on our website to download our ROBS e-book or schedule a free phone consult.


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