Logo
  • Home
  • Press Releases

Nabers Group CEO Warns Against Rollovers As A Business Startup ROBS

Denver, Colorado (WiredPRNews.com) —  Jeff Nabers, CEO Of Nabers Group www.Nabers.com Cautions Against The Use Of 401(k), IRA Rollovers As A Financing Strategy For A Business Start-up.

One unforeseen consequence of the current recession has been the increasing number of Americans who have stumbled into entrepreneurship after losing their jobs to round after round of layoffs. Many of these people have taken one look at a job market where the unemployment rate is nearly 20% in some regions and decided to start their own businesses. It’s a bold move and certainly there is something very admirable about the idea, but also a risky one, with about half failing in the first few years; making financing a small business start-up something, which should be done with great care.

There are a lot of people who think of using 401(k) or IRA rollovers as a source of financing the start-up costs of a new business or to cover the purchase of an existing one. While you may see a lot of praise for these plans (called ROBS for Roll Over Business Start-up by the IRS), especially online where their proponents try to sell would-be entrepreneurs on the merits of this form of financing, many financial industry experts strongly recommend thinking again about using your IRA or 401(k) to fund your small business.

One of these financial experts is Jeff Nabers, CEO of the Denver financial planning company Nabers Group. Nabers has written about how ROBS work and their risks on his blog, where he warns against using these financing vehicles.

“It’s entirely understandable that people are tempted by ROBS; the recession hasn’t made small business financing easy to come by and there are more Americans than ever trying to start their own businesses. However, there are a lot of risks associated with using IRA and 401(k) rollovers. Beyond the old diversification maxim of ‘don’t put all your eggs in one basket’ the legality of the ROBS strategy has been on shaky ground. There’s a basic rule that prohibits “self dealing” for any retirement account participant, but ROBS promoters have attempted to skirt this by creating a loophole that claims a special exemption. Unfortunately, a government ruling from 2006 closed that loophole. ROBS structures could face a stiff penalty, which amounts to approximately 115% of your retirement funds,” says Nabers.

“It’s a subject that is somewhat controversial in the financial services industry, but as I have been informed by government officials and my legal counsel, the 2006 ruling means ROBS no longer occupies a legal gray area even. I can’t recommend these to my clients in good conscience. I don’t see a bright future for this strategy of funding, to put it mildly,” added Nabers.

Jeff Nabers isn’t alone in sounding the alarm about ROBS and other rollover schemes – there has been a lot of concern expressed by financial experts in the last year. Previously, ROBS was considered high risk, but as Nabers’ put it, “My recent DOL meeting was the nail in the coffin of the ROBS loophole.”

Nabers unabashedly encourages entrepreneurship in spite of the government’s unfavorable stance on ROBS. His message to would-be ROBS users is: “Start and fund your venture anyway [without ROBS]. You can still raise money from others, including from their IRA and 401(k) accounts. Frankly, that is actually a surer path to success because raising money from others will cause you to be more thorough in your business planning.”

About Nabers Group:

To learn more about Nabers Group, please visit: http://www.Nabers.com.

To read what Jeff Nabers has written about ROBS and similar financial instruments, please visit his blog at: http://JeffNabers.com.

MEDIA CONTACT INFORMATION
Nabers Group
621 17th St #2100
Denver, CO 80293
http://www.Nabers.com

Phoebe Chongchua
Office: 877-903-2220

It's only fair to share...Pin on Pinterest
Pinterest
Tweet about this on Twitter
Twitter
Share on LinkedIn
Linkedin
Share on Facebook
Facebook
Email this to someone
email
Print this page
Print
Tags: Business, Colorado, Denver, denver colorado, Entrepreneurship, financial experts, financing, Jeff Nabers, nabers, ROBS, small business financing
November 9, 2009   401kDirectAdvisor
Money & Finance, Press Releases Business, Colorado, Denver, denver colorado, Entrepreneurship, financial experts, financing, Jeff Nabers, nabers, ROBS, small business financing
×

  • Teen alleged ringleader of celebrity burglaries
  • Flower Mound Dentist Preserves Small Practice Ideals
Categories
  • Arabic PR
  • Art
  • Auto News
  • aviation news
  • Bollywood News
  • BP OIL Spill News
  • Business
  • California
  • Call Center News
  • Copyright Law
  • Dallas News
  • e-commerce
  • Education
  • Electronics
  • Employment Law
  • Entertainment
  • Family law
  • Fashion
  • Food & Beverage
  • golf news
  • Green
  • Health & Fitness
  • Hollywood News
  • home decor
  • insurance
  • iPhoneNews
  • Law
  • Media News
  • Medical News
  • Mesothelioma Asbestos
  • military-news
  • Money & Finance
  • music news
  • new york
  • New York City
  • News
  • Noticias en español
  • Opinions
  • Personal Finance
  • Personal Injury Law News
  • Press Releases
  • Real Estate
  • Religious News
  • Restaurant Reviews
  • Social Media News
  • Social Responsibility
  • South Florida News
  • Sports
  • Technology
  • Top Stories
  • travel
  • UK Press Release
  • US Presidential News
  • VoIP News
  • Weather
  • Web Technology
  • Weddings
  • whistleblower
  • World News
Recent Posts

Rehabs Near Me Launches New Rehab Services in the US

February 25, 2021, Comments Off on Rehabs Near Me Launches New Rehab Services in the US

Expert Biloxi Roofing Contractors Keeping Properties in Top-Notch Condition

February 24, 2021, Comments Off on Expert Biloxi Roofing Contractors Keeping Properties in Top-Notch Condition

Meta Slim Complete Reviews: Critical Ingredients and Side Effects Report! By Derekblog

February 24, 2021, Comments Off on Meta Slim Complete Reviews: Critical Ingredients and Side Effects Report! By Derekblog
Tags
asbestos Business California cancer clean air solutions clouse dunn khoshbin Dallas dallas employment death economy Education employment law attorney Employment Lawyer employment lawyers facebook Florida google government Health Hollywood insurance jonathan c reiter Lawsuit lawyer marketing Los Angeles marketing mesothelioma mortgage new york New York City nfm lending Obama Parcel2Go president Real Estate recession Search Engine Optimization SEO social media study Texas texas employment Twitter U.S. Washington
News Tags >>

  • Our News on Google News
  • Yahoo News
  • Writing a Press Release
  • Press Release Distribution Services
  • A Sample Press Release Template
  • Social Media News Distribution
  • Search Engine Optimized Press Release
  • Online News Distribution Benefits
  • Dallas News
  • Latest Press Releases
  • Lawyer Press Release Service
  • News on Major online news sites
  • Press Release Service WiredPRNew.com
Copyright © 2021 WiredPRNews.com