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

Pango Financial at Seventy Six Capital Business of Sports Event

Pango Financial at Seventy Six Capital Business of Sports Event

This week, Pango Financial President Candice Caruso attended the Business of Sports Event hosted by Seventy Six Capital. Former Philadelphia Phillies star Ryan Howard is a partner in the venture capital firm, which specializes in consumer facing technology companies in the retail, sports and wellness industries. Their active portfolio companies include Indiegogo, Reverb Nation and Whistle… Continue Reading

Delaware Small Business Roundtable with Rep. Lisa Blunt Rochester

Delaware Small Business Roundtable with Rep. Lisa Blunt Rochester

This week, Pango Financial President Candice Caruso joined Delaware Representative Lisa Blunt Rochester and local business and franchise leaders for a Small Business Roundtable. Candice serves as the Delaware State Captain for the Franchise Action Network to bring together franchisees and franchisors with government officials. Co-hosted by the IFA and Franchise Action Network, the round… Continue Reading

Pango POV – “Shoe Dog: A Memoir By The Creator of Nike” Is the Perfect Book For Aspiring Entrepreneurs

Pango POV – “Shoe Dog: A Memoir By The Creator of Nike” Is the Perfect Book For Aspiring Entrepreneurs

At Pango Financial we are inspired by the success of other entrepreneurs.  Ever wonder how business empires and brands like Nike are built?  Sacrifice, risk, self-exploration, the right team and commitment along with drive to win can all be found in the “Shoe Dog: A Memoir By The Creator of Nike.” In “Shoe Dog,” Knight… Continue Reading

Pango POV – “The Boss Baby” Has Laughs and Lessons

Pango POV – “The Boss Baby” Has Laughs and Lessons

The Pango Point of View aims to bring you thoughtful, balanced, and insightful commentary about issues affecting small businesses and entrepreneurs. Along with our blog series, we post quick hits branded with #PangoPOV from our Twitter handle, @pangofinancial. With so much happening in the news and current events, this Pango POV takes a lighter note –… Continue Reading

A Letter from our President: Pango celebrates 3 years

A Letter from our President: Pango celebrates 3 years

Pango Financial is celebrating 3 years of successfully supporting small business owners across the country. We have consulted with and helped hundreds of business owners fund their dream of business ownership. Pango Financial was founded with the intention of helping entrepreneurs startup or grow their existing business. Pango’s name comes from the Greek word Pan… Continue Reading

As part of our continued support of men and women who have served in the U.S. military, Pango Financial participated in the Veterans In Franchising Workshop and Expo in Fayetteville, North Carolina. The event, sponsored by the North Carolina Veteran’s Business Association, American Dream U, and the West Business Group, brought together veterans, their spouses,… Continue Reading