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ROBS 401K | NO PENALTY - Use your 401K Money NOW - YouTube
Channel: The Freedom Strategy
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- Hey guys, well a
Rollover Business Startup
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might actually be the answer
that you are searching for?
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A lot of people call
it ROBS or a ROBS 401K.
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So make sure you stay tuned
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because I've got a free resource for you
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that is jampacked with information
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that if you were considering
opening a ROBS account
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you are going to want to read.
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I help people ditch the nine to five
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or the corporate desk
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and start freedom based businesses,
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I call it The Freedom Strategy
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so you can get out there and
live the life you wanna live.
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So if any of that sounds good
to you then please subscribe
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also hit that notification
bell (bell ringing)
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so you get alerted when
I send out a new video
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every Wednesday.
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(upbeat music)
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Welcome back to my channel,
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if you're new here I am Heather
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and I am here to talk to you today
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about a ROBS or a
Rollover Business Startup.
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What it is, what it
isn't, who it's good for
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and who shouldn't touch
it with a 10 foot pole.
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And it is often the best
solution for my clients
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who have a 401K or an IRA
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they wanna start their own business
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but they don't have the capital
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and this is a great solution for them.
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So I help them with the process
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and hook them 'em up with the right people
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so they can finally start
living their dreams.
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Okay so let's talk about
a ROBS and what it is.
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Again, it is a Rollover
Startup Business account
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and it is a vehicle
totally straight up, legit
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above board IRS approved
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that allows you to tap into your money
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that you've already earned
and put in a 401K or an IRA
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and you can tap into it and use it
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to start your own business
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and be an employee of that business
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and get paid with no penalty.
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Now I've been out there
long enough to understand
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that there is absolutely a social stigma
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that is associated with
tapping into your 401K.
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People freak out and I am not kidding you.
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They act like you're the
stupidest person on the world
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if you ever wanna tap into your 401K.
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Now why is this?
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Well the financial industry
has a lot to do with it,
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it is just so ingrained
in us in the United States
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that you have to put this money away
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and by the way if you wanna
touch it before you're 62 1/2
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or 64 1/2 or whatever age
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we're gonna penalize you.
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And it is so ingrained in us
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that people have this
very visceral reaction
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when you say hey I've got some money
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set aside in this 401K
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and I wanna use it to start a business.
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People will act like you are from Mars.
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Do not let that stop you
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because it is often the
best way to use that money
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that you've already made,
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reinvest it in yourself
and start a business
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that's actually going
to make you more money
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than if you would left the money
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sitting there trapped in a 401K.
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Now part of the reason
people are so hesitant
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to pull the money out of an IRA or a 401K
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is because there are some hefty penalties
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associated with it.
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The beautiful thing about a ROBS
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is that there are no penalties,
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it is totally legit,
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it is a way that you were
able to capture that money
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and use it to build a
business for yourself
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and you can be an
employee of that business.
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You do not have to cash it out
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this is not about cashing it out
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and you do not have to
take number one the tax hit
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or number two the 10%
penalty which can be huge.
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And by the way I've got a client
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who cashed out a 401K
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to put money down on
an investment property
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which was totally fine
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because they ended up making
way more money in that property
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but they did pay that 10% penalty
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and I just wish we had all
known about this ROBS thing
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before that happened.
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Que sera sera, however you now know
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that you can do things like that
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with your 401K money
and not get penalized.
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Now I am curious,
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do you have a business
that you wanna start
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but you can't quite
figure out the financing?
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If that is the case
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go ahead and write in the comments below
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what business it is you wanna start.
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I love entrepreneurs
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and I love hearing about new businesses.
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Now getting back to ROBS
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The Rollover Startup Business Account
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a lot of people do confuse
it with a Self-Directed IRA
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which is also something
that many of my clients use
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but the difference between the two
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and it is really important to
understand that difference,
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if you are using your money
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and putting into what
more people know about
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which is the Self-Directed IRA,
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yes you can invest in businesses,
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yes you can invest in the stock market,
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you can invest in properties
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but you can't access that money still
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that's getting generated by
it without taking a penalty.
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Now on the flip side the ROBS account
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you can become an employee of the company
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and take an income from it,
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so you are benefiting from your own 401K
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that by the way gets
transferred into a corporation
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then you become an employee
of the corporation.
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That is why you can do it
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it is a fantastic way to start a business
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and still get an income
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rather than kipping it trapped over here
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with the Self-Directed IRA.
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So those are the two big differences
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between these two entities.
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Now another wonderful thing about ROBS
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is they do require you to establish
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a 401K within the company that you start.
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So the corporation you
start has its own 401K
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so if you choose to
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you can absolutely roll that
money right back into it
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into its own 401K.
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So you are not giving up your 401K,
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this is something that is
so critical to understand
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people who are negative
about this whole concept
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often do not understand that.
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So understand you have to start a 401K
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with this corporation
that you are starting,
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it is a great safety net,
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it also there for you
to use as a tack shelter
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for pre-tax dollars.
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So you are not losing any of the benefits
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but you are gaining so much more
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because you can also be an
employee and take an income.
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Now you will pay income tax
on the income that you take
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as you should,
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but that is the differences
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if you want to be able to take an income
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you want to open a ROBS account.
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And guys I'm not just blowing smoke here
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I have done this personally
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and I think that's
important that you know that
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because I do know the pitfalls,
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I do know the work involved,
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I do know that yes you have
to have this corporation
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and there is a fair amount of paperwork
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and I would never personally do it myself
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even though I'm an attorney
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and I do kind of
understand how it all works
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I don't do it myself,
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I have this great company, I hire Guidant.
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I think there are only a handful
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of companies in the country who do it,
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I went with Guidant
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they have been extraordinary,
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totally professional,
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they have got every I
dotted and every T crossed
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they make sure you can't screw it up.
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So if you were considering you doing it
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I do highly recommend them.
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I have a link below
where you can click on it
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and get more information about it.
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But it has worked beautifully for us,
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we are making more money
on the business we started
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using our ROBS account
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than we were in the other traditional 401K
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so just know it can be done.
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Now who shouldn't do this?
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I think it's important to explore
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that if you just have a little nest egg
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that truly is all you
have left for retirement
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probably it's not the best solution
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unless you have a business that you know
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like guaranteed you are
gonna be making money on it.
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I would not consider using a ROBS
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if it's a super risky
business you wanna start
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or it is really going to tap down to zero,
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especially if you're
close to retirement age
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you probably don't wanna do that.
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But if you're like so many people
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that you have worked your butt
off in the corporate world,
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you've got a fair amount
of money in a 401K
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and you wanna take part
of it and start a business
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or even all of it to start a business
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and that business is well
thought out and well planned
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this is a fantastic option for you.
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So hopefully you know
which category you fit into
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and if you're interested in the ROBS
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again click that link below
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because it'll give a lot more information.
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Well guys if this video has helped you
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understand a little bit
better what a ROBS is
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and how it can help you
start your own business
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using your own money that you've
already worked so hard for
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please let me know by giving
it a like and subscribing.
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And by the way,
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if you are ready to buck
the traditional system
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and figure out how to make
multiple streams of income
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so you can live the life you wanna live
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then go ahead and type hashtag
BuckIt in the comments below.
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Again my name is Heather.
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Thank you for watching
The Freedom Strategy.
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I will see you next time.
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(upbeat music)
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