photo credit: urban_data
It is no surprise that today many people in the work force and out of the work force are contemplating buying a franchise and leaving their 9-5 job. The problem with this plan is that it takes money to do this and most people today don’t have that much in their savings account or on hand. So should they dip into their 401-K plan in order to finance their new franchise?
First of all one must realize the work it takes to owning a franchise business, this is not a task for everyone. So when contemplating buying a franchise in general, you must make sure you’ve looked at all aspects and know that it is for you.
As for investing part of your retirement, 401-K or IRA into the franchise, this depends on your portfolio and the business you plan to buy. If the economy has not been too generous to your portfolio this past year, many advisor’s would advise against using your 401-K to invest.
During times like these, don’t allow someone to sneak up behind you, and apply the ether. Do your homework. If the opportunity makes sense, get a franchise attorney, an accountant, and a lender, who will be your support team. If everything looks good, take your shot!
What are your thoughts on using 401-K to invest in a franchise?