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UNLOCK YOUR RETIREMENT FUNDS...
WITHOUT PENALTY OR TAXES
Use your 401k or IRA assets to fund your new business. This money can even satisfy the 25% equity investment required to qualify for a Small Business Administration (SBA) guaranteed loan. Click here to learn more about your financing options.
No taxes. No penalties. No loan repayment.
Take advantage of a time tested, IRS-approved way to use 401k, 403b, Pension, Profit Sharing or IRA money to start a business – with no penalty, no taxes and no loan repayment.
After all, it only seems fitting that you should be rewarded for good saving habits. You planned well and saved for your future. Current tax laws, however, severely penalize savers who prematurely access their 401k, IRA, profit-sharing or annuity plans. In fact, in many states, you will lose up to 50% of your funds in taxes and penalties... just for accessing the savings you have worked so hard to accumulate. ........................................................................
It's a "no-brainer."
With your new trust in place, you can get the money you need to fund your new business and you won't lose a penny to the IRS. If you are thinking that this sounds complicated, then think again. Everything is handled for you. There is no confusing IRS paperwork for you to file, no long loan application, and no hassle with your financial institution.
This also means that you have everything you need to move forward... without taking the time required to get loan approval and making an obligation to repay it.
Do the math.
Taking early distribution of a 401k or IRA triggers the following taxable event: 20% mandatory hold-back, Federal income taxes, State income taxes and a 10% early withdrawal penalty. As shown in the following example, transfer of $100,000 could easily result in a $45,000 tax bite.
-This is an example. Individual situations will vary. |
With Your New Trust |
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With Early Distribution |
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| ..Amount of Investment: |
$100,000 |
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$100,000 |
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| .....Less: .Early distribution penalty (10%): |
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10,000 |
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| ...............Ordinary income taxes (33%): |
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33,000 |
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| ...............State income taxes (2%): |
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2,000 |
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| ...............Other taxes (--%): |
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|
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| ..Total taxes & penalties: |
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$45,000 |
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| .....Less: .Fees to set up & maintain your trust plan*: |
5,000 |
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| ..Net Cash Available |
$95,000 |
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$55,000 |
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$40,000 |
*The $800 annual maintenance fee is included. Incorporation services and filing fees are additional one-time charges.
How does this work?
Your new plan provides all of the components required to insure compliance with every applicable section of ERISA and IRS code. Once you adopt the plan, your existing retirement funds are converted into privately-held stock in your new business.
Your new tax-deferred trust is coupled to a replacement plan that contains special "exemptive clauses." Your new business gets the cash it needs from the sale of a portion of its stock to your trust plan. Your trust provides custodial services to administer your non-publicly-traded stock.
* * * * * * * * * * * * * * * * * * * * * * * * * *
The Best Investment
If you analyzed all of the investments where you could put your money, they would fall into two main categories. The first category is financial instruments. This includes stocks, bonds, commodities, etc. The second category includes real estate and various types of businesses.
The Type of Investment |
.......Success Rate....... |
Return on Investment |
| ...Real Estate |
? |
25-75% |
| ...New Unaffiliated Business |
20-25% |
10-40% |
| ...Existing Unaffiliated Business |
55-65% |
40-75% |
| ...New Franchise Business |
92-97% |
113-143% |
During the past 75 years, the stock market has been the best performing financial instrument with a 12% average annual return. On an overall basis, however, franchised businesses have achieved the highest return on investment and the best rate of success. To learn more about this impressive record of profitability and success, click here.
Why Is Franchising So Powerful?
Franchising as a whole has a 92% success rate for business owners. For franchisees who own multiple units, the rate goes up to 97%. Increased market share equals increased profits and franchising is the best way to gain market share.
The International Franchise Association recently reported that franchising is responsible for 760,000 businesses, 18 million jobs, 14 percent of the private sector employment, and over $500 billion in payroll! They also reported:
- 93% of the franchisees say that a franchise gives them an advantage.
- 88% recommend a franchise over a non-franchised business.
- 83% are happy with their franchise.
- 65% would purchase the same franchise over again.
- In 2004, average yearly net income for a franchisee was $91,630.
- In 2004, the average net income for a single unit franchise was $76,000.
- In 2004, the average net income for a multi-unit franchise was $142,000!
Right now, retail franchise businesses represent only 8.3% of the businesses on the street. However, the sales from those franchises represent 40.9% of the total retail sales in the United States. Franchising is the best vehicle for capturing market share. One of the best ways to increase profits is to increase market share. The typical franchise, when compared to an unaffiliated business, is more profitable.
"Franchising is the single most successful marketing strategy ever." – John Naisbitt, Author, Megatrends
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