Virginia Beach, VA, March 21, 2023 (GLOBE NEWSWIRE) -- As the economy continues to fluctuate, many individuals are seeking new ways to secure their financial future. As companies like Facebook announced layoffs of more than 10,000 employees. People are actively looking for ways to protect their financial future. One option that is gaining popularity is using a 401k to purchase a business, with the added benefit of not paying taxes on the money used.
This approach, known as a 401k Business Financing Plan, allows individuals to invest in a business using funds from their retirement account without incurring early withdrawal penalties or paying taxes on the amount used. This method is becoming increasingly popular as it provides a tax-efficient way to invest in a business. People being laid off can use the money in their retirement accounts to realize the dream of self-employment. Many are choosing the option of buying a franchise.
"Using a 401k to purchase a business can be a smart financial move for those who are looking for a future path," said John Hewitt, Founder and CEO of Loyalty Brands. "By using a 401k Business Financing Plan, individuals can access funds from their retirement account without incurring taxes or penalties, which can be a significant advantage."
While using a 401k to purchase a business can be a complex process, it can also provide many benefits. By owning a business, individuals have the potential to create a stable source of income and build long-term wealth. Additionally, using a 401k to fund the purchase of a business can provide a tax-efficient way to invest in a venture.
Loyalty Brands is a franchise organization managing multiple franchise brands from all business sectors. The company helps potential franchise owners evaluate and choose the right opportunity for their skills and investment level.
"At Loyalty, we have seen an increase in the number of people interested in using a 401k to purchase a business," according to Hewitt. " The current state of the economy and the pending layoffs of thousands of people, from many companies of all sizes, is creating a demand for self-employment opportunities. We work closely with individuals to help them navigate the process and ensure that they are making a wise decision about franchises.”
While this approach may not be suitable for everyone, it can be a viable option for those looking to invest in a business. As with any investment, it is important to do thorough research and seek the advice of a financial professional.
Franchising as an industry typically grows during periods of financial downturns and layoffs. People are searching for a new career path, and the opportunity to determine their own future. Franchising provides a business model for being your own boss coupled with the support of the franchisor. Training, support, marketing and advertising as well as coaching, mentoring, and brand image are all benefits provided by the franchisor.
About Loyalty Brands
Loyalty Brands was founded by Franchising guru John Hewitt with a staff that has over 500 years of experience in the franchising industry. Hewitt founded and grew two of the top 100 retail brands in North America. Loyalty manages 12 franchise brands including, ATAX Tax Service, Zoomin Groomin Mobile Pet Grooming, Little Medical School, Jomsom Staffing Services, CR3 American Exteriors, The Salt Suite, Ledgers USA, Loyalty Business Brokers, Estrella Insurance, The Inspection Boys, Action Karate, Bubbly Laundry Services.
