How to fund a small business without risking your retirement funds. When you have funds tucked away in retirement accounts, it may be tempting to go after that money to launch your company. Currently, the most popular type of SBA loan has a maximum interest rate of 6.25% (loans over $50,000) to 8.75% (loans under $25,000). Currently, the typical interest rate on a home equity credit line is around 5%, but rates are on the rise. Interest rates now range between 3% and 4% typically. A stock-secured line of credit is often less costly than a HELOC or a brokerage margin account; the current rate is typically 3% to 4%. Often, repayment is interest only. The risk for using stock to secure a line of credit: it may result in negative credit implications if you are unable to repay the loan. Then, you’ll have an agreement for how a partner can exit. Business owners should be aware that pursuing financing through percentage of ownership could be an impediment to obtaining traditional financing later and that crowdfunding sites do not typically offer intellectual property protections.
Quotes can inspire us, help us ignore the naysayers, and provide hope during a difficult situation. We often put them on posters, t-shirts, and bumper stickers to remind, encourage, and propel ourselves forward.
Over the last decade, I have written four books, over a dozen guides, and close to 400 articles on retirement. For those approaching, or already in retirement, here are seven of my best retirement quotes that you can use to wake up motivated, overcome obstacles, and sleep well at night.
1) Don’t confuse what you do, with who you really are. – Robert Laura
Too often people confuse who they are with what they do, or unknowingly fall in love with their job or aspect of work life that can’t love them back. In doing so, they set themselves up for disappointment and unnecessary struggles in the early phases of retirement.
Unlike a simple break-up, retirement can result in a full-blown divorce, leaving those who aren’t prepared feeling lost and misguided. Therefore, it’s crucial for new and existing retirees to “Retire to” something otherwise they can lose their sense of purpose and stability.
2) Retirement is like an iceberg, where 90% of what’s really taking place lies below the surface, absent from traditional financial plans and conversations – Robert Laura
Retirement planning is so focused on money that people don’t realize they need to plan for the more personal areas of life that are crucial to creating a happy, healthy, and connected retirement. The reality is, even if a retiree spends 20 hours per month on their investments and other financial issues that still leaves 97% of their time each year to fill with other activities.
As a result, retirees can unknowingly put off taking care of themselves, their relationships, and the pursuit of passions and hobbies. Therefore, new and existing retirees have to take the time to discuss and plan for those things that lay beyond the scope of traditional planning or they run the risk of wasting some of their best years trying to figure it all out.
3) Running out of money pales in comparison to running out of family, friends, good health, and time – Robert Laura
A person may retire with all the financial resources needed to maintain a certain standard of living, but money won’t buy love, health, family or friends. We have created a society that worships the dollar amount it takes to create the perfect retirement, but it’s essential to look beyond the numbers and consider what people may be trading off for those precious dollars and cents.
At the end of the day – and…