business.com Feature on Funding your Startup with Retirement Funds

Thanks to business.com for interviewing our own Phil Mitchell on ROBS, a rollover program for startups.


Pros of using a ROBS

  • You don’t have to take out a loan. Borrowing money to fund a business is expensive, whether it’s a short-term loan or you’re borrowing against your sales. Besides the monthly payments, there’s interest and other fees. That’s not the case with a ROBS plan. “If you feel confident in what you do, this is a way to access capital,” said Phil Mitchell, a certified public accountant and member of the AICPA Personal Financial Planning Committee. “If I got a loan, I would be responsible via a personal guarantee.”

Cons of using ROBS

  • You’re draining your retirement fund. Using your retirement savings to fund a startup business has significant trade-offs. If your business succeeds and profits surge, you may recoup the money and then some. If the reverse happens and you struggle, your retirement is at risk or, at the very least, is delayed. “It’s the opportunity cost,” said Mitchell. “It’s how well did the C-corp do versus how the stock market did.”


Read the full article on business.com found HERE.

We’re happy to answer any financial questions you may have right now. Call 616-356-2002 or visit our contact page to schedule.

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