Q: I am looking to purchase a business, and I found a company that is offering to use my 401K and IRA funds to set up the company. It sounds like a good deal. Do you have any information on this type of business?
A: I've read all about them and in theory it seems like a brilliant deal. I have not done this personally but I do know from speaking with professionals that it's not simply a generic program applicable to every situation. I am ALWAYS wary of these so called "loopholes". The key is that the plan itself and the transaction must be set up and completed precisely. As such, I would suggest that you have your accountant and/or attorney review this possible option for you.
|Get more expert advice in Richard Parker's How To Buy A Good Business At A Great Price - the most widely
used reference resource and strategy guide for buying a business.
|Richard Parker is the author of: How To Buy A Good Business At A Great Price, the most widely used reference resource and strategy guide for buying a business. He has purchased ten businesses in his career and has helped thousands of prospective buyers worldwide learn how to buy the right business for sale. He is also founder and President of Diomo Corporation - The Business Buyer Resource Center.|