With more and more seniors finding that either by way of necessity or purely out of a desire to continue to remain in the workforce, many are turning to open their own businesses. Franchising provides a stable, solid way for retirees to find business solutions that can really bring about a more assertive approach to how they wish to go about doing just that.
Many seniors find that using their IRAs or 401k is the way to go when seeking out financing for start-ups. In this, they find that their start-up goes much, much faster than perhaps other means of finding funds, and they are able to go ahead and begin doing business and getting their grounding. This also has benefits in the tax realm, often, as the IRA continues to grow, tax-free and more money is accrued there. As well, utilizing this means of a start-up can be a great way to get a business going, buy into a franchise- without piling on a lot of debt, and reduce the overhead often associated with loans and interest rates.
This is often where the Employee Retirement Income Security Act or ERISA comes into play. This allows for a wide variety of retirement options to be utilized in investments- that is, in business start-ups, franchises, or real estate. Sources include: IRAs, 401k, Keogh, and 403bs, and your accountant or investment adviser will be best equipped to tell you where it falls in line with your goals and plans in business and if what you are looking to do is actually outlined in the ERISA.
From the outset, the process of directing these things to buy into a franchise seems fairly simple, however- you do need to have professional help to enable you to make sure that you are not only making the soundest possible investment but also, to ensure that you are still acting within the provisions set about by ERISA. However, adequate legal counsel in this can make sure that you are working with and not against the IRS, and everything goes just as smoothly as it needs to.
There are many other options for seniors and retirees who prefer to go into business and franchising. Looking into the Small Business Loan Administration or SCORE, as well as talking to the franchisor themselves can often lead to you being able to find the start-up, or discounts that you may qualify for and is definitely something worth looking into for any senior who may be wanting to become self-employed in this way. SCORE has no fee, and can generally also enable seniors to be able to have access to a wealth of not only funding information, but business management seminars and coaches that will also benefit them. Being able to continue working, and being independent is something that is certainly within the grasp of any retiree who feels that franchising may be the right path for them.
