Author Archives: Pango Blogger

Your Retirement Dollars Could be the Key to your Dream of Business Ownership

Your Retirement Dollars Could be the Key to your Dream of Business Ownership

The stock market has had its ups and downs.  Many people are expecting that at some point soon there will be a correction in the market.  Are you seeking other alternatives to invest your retirement savings?  Are you burned out from corporate life?  Did you know that tax deferred retirement accounts can be invested in your own business?  This could be your opportunity to be your own boss.  Learn how your retirement savings could be the key to your future as a business owner.

Many corporate executives have no real work/life balance dedicating 60 to 80 hours per week to their corporate job.  This takes them away from quality family time and the opportunity to pursue their true passions. This is causing corporate refugees to consider a sounder option of investing in themselves and becoming empowered as an entrepreneur.  Individuals with 15 to 20 years in corporate America have money tied up in employer plans, old 401K plans or IRA Rollovers.  People are uninformed believing that retirement assets are untouchable.  However, the IRS, DOL and ERISA allow you to invest in your own business using retirement dollars as your seed capital without penalty and tax deferred.  You can choose a path of franchise ownership, startup or buying an existing business.

This program is well known for franchise startup and is called the DreamSpark plan.  The DreamSpark plan is a qualified retirement plan that will allow for investment in your own business.  This type of plan allows tax-deferred assets to be rolled over from a 401k or IRA accounts and invested in your business through a new qualified retirement plan. The DreamSpark becomes a shareholder in your new company. An initial valuation of the business occurs based on the amount of equity invested in the business and the retirement dollars invested becomes working capital in the business. That corporation can pay the franchise fee, rent, w-2 wages and any other legitimate business expense.  Essentially, instead of investing in Amazon or any other publicly traded company your retirement account is now invested in your business.  The success of your business will determine if your investment appreciates or depreciates.

Below is a graphical illustration of how it works from our team of experts at Pango Financial.

The DreamSpark plan offers some key benefits.  It allows you to capitalize a business quickly in just a couple of weeks.  You can reduce or eliminate the need for business debt.  This can lead to quicker profitability.  You can also use the DreamSpark plan to make your down payment or equity injection for an SBA 7(a) loan.  The DreamSpark plan is also a retirement plan that allows you to continue to save for retirement and reward loyal employees with the ability to save as well.  The DreamSpark plan can be designed as a Profit Sharing or 401k plan.  The funds in the plan are tax deferred and penalty free and any new contributions made by the business to the plan are deductible.

It is important to select the right business for you and your family.  Investing retirement dollars in the wrong business can cost you market returns and loss of your investment. When going into business you must recognize that risk accompanies any kind of investing, but ultimately entrepreneurs prefer to bet on themselves.  You have direct control of your return on investment and the growth of your retirement account.

The DreamSpark plan may not be right for everyone but it does provide a unique option that you can pursue to start your own business. Because of its complexity and specialized IRS preapproved plan document, it is essential that you engage a professional third party administrator like Pango Financial to setup and maintain your DreamSpark plan.  Long term compliance is key to maintaining your retirement dollars invested as tax deferred and penalty free.

 

John Graham brings experience & knowledge to Pango

John Graham brings experience & knowledge to Pango

Pango Financial is growing and ready for a successful 2018. We’re excited to welcome John Graham to our team as Business Development Manager, working with our existing referral partners and helping our outreach program for new partnership and affiliate opportunities. He will also be working with franchisees and small business owners to assist in finding… Continue Reading

Webinar: Active and Passive Investing in Franchises

Webinar: Active and Passive Investing in Franchises

Pango Financial President, Candice Caruso shared information on the different funding alternatives available to start a business in the webinar Active and Passive Investing in Franchises. In this webinar she discussed: How Pango’s DreamSpark plan can help you use your own retirement funds tax & penalty free Available alternative funding options Importance of partnering with… Continue Reading

Powered by Pango – Winnie Kroculick, Seva

Powered by Pango – Winnie Kroculick, Seva

At Pango Financial, we take pride in our entrepreneurs and their accomplishments. The Powered By Pango series highlights our successful entrepreneurs and their stories. Winnie Kroculick is a corporate executive and mom turned business owner. She continues to work in the corporate world and run her Seva franchise as it offers a semi-absentee model. She… Continue Reading

Hillary in the White House: A Guide to Preparing Your Small Business

Hillary in the White House: A Guide to Preparing Your Small Business

Hillary Clinton’s Presidency will be a challenging time for small businesses. Her proposed policies made through policy statements through her campaign could ultimately end up being a significant tax burden for entrepreneurs. On the other hand, a Clinton presidency means stability in the financial markets – something that will be critical for favorable conditions for… Continue Reading

The Trump Brand: How the Donald Will Repair His Image with Consumers

The Trump Brand: How the Donald Will Repair His Image with Consumers

As Donald Trump slips in the presidential polls, it’s his businesses that may be falling behind even further. Much has been made in the press about lackluster bookings at his new Washington DC luxury hotel. Meanwhile, he faces lawsuits over Trump University and accusations of fraud over improper donations at the Trump Foundation. Taking these… Continue Reading

FAN Annual Meeting Q&A

FAN Annual Meeting Q&A

The Franchise Action Network (FAN) recently held its annual meeting in Washington DC. As Delaware’s State Action Captain for FAN, Pango’s Candice Caruso was in attendance. The following is a Q&A regarding her experience. What are some highlights from the 2016 FAN annual meeting? This year’s meeting underscored the importance of franchises in the communities… Continue Reading

Pango Financial featured in The Delaware News Journal

Pango Financial featured in The Delaware News Journal

Pango Financial was recently featured in an article in The Delaware News Journal, highlighting our services, as well as, a Pango Financial customer who gained funding for his small business via our signature product the DreamSpark retirement rollover plan. Our DreamSpark retirement rollover plan allows individuals to borrow against existing qualified retirement accounts, like a… Continue Reading

Pango Financial President, Candice Caruso, speaks with the Breaking Down Your Business Podcast

Pango Financial President, Candice Caruso, speaks with the Breaking Down Your Business Podcast

Pango Financial President, Candice Caruso, recently sat down with the high energy team of the Breaking Down Your Business Podcast! The conversation included the Top 5 Ways to Get Value Out of an Online Community and some awesome commentary on how Pango is helping our customers; check it out! http://bit.ly/1XXslai Continue Reading