Get Your Business Funded: Creative Methods for Getting the Money You Need

Risks

I almost need not say what the biggest risk here is, but I will anyway because it bears repeating: This is your retirement fund! You simply must be very sure of your course and very committed to its execution if you plan on using this nest egg to finance your business. While that is the sort of passion it takes to become a successful entrepreneur, you must still be smart and prudent as you proceed. After all, the days of investing $60,000 in a real estate deal and flipping it for a profit in 30 days are long gone.

There are more and less risky ways to use your retirement money to fund a business; it all depends on your goals, situation, and the type of retirement account you have. We will examine them all, but just remember: less risky is better.

“Until one is committed, there is hesitancy, the chance to draw back, always ineffectiveness. Concerning all acts of initiative (and creation), there is one elementary truth the ignorance of which kills countless ideas and splendid plans: that the moment one definitely commits oneself, the providence moves too. A whole stream of events issues from the decision, raising in one's favor all manner of unforeseen incidents, meetings and material assistance, which no man could have dreamt would have come his way. I learned a deep respect for one of Goethe's couplets:

Whatever you can do or dream you can, begin it.

Boldness has genius, power and magic in it!”

Source: W. H. Murray, The Scottish Himalayan Expedition, 1951.