The advantages of using this program over other financing options are substantial both in regards to profitability
and the success rate of new businesses. Some of these benefits are:
Debt Free – Cash Rich. Your retirement funds can be structured as an investment into the business, so there are no debts that increase your overhead. Instead of sending money to a bank in the form of interest payments, that money can be reinvested in marketing, staff or equipment that helps the business grow faster.
Invest In Yourself. Use your retirement funds to invest in a business where you determine the rewards; you control the success of your retirement investment.
Lower Your Overhead. Using retirement funds to start a business does not require bank loans or tapping into your home equity. Now the initial revenue your business generates can go into developing the business rather than paying off debt. Less debt means a quicker path to profitability.
Enjoy Tax-Deferred Savings. Paying taxes and penalties can minimize the amount of money available for you to invest. By avoiding unnecessary penalties and taxes, the 401(k) plan enables you to save more money for retirement.