Why Business Owners Should Never Use a 401(k)

It’s common for business owners to have a 401(k) retirement plan, but that may not always be the best case. It goes against conventional wisdom, but a 401(k) will never allow business owners financial freedom. By allocating company funds to a qualified retirement plan, there is more risk involved since the economy is unstable and businesses will be left without potential funding. Instead of putting money into a 401(k), business owners should learn the tax code and use their funds to search for new opportunities to make money.

Key Takeaways:

  • 401(k) programs and pensions were started by businesses to make it look as if they were caring.
  • If you are a business owner, putting money in a qualified plan ties it up, meaning you can’t use it if you really need it for your business.
  • Business owners should invest their money in their businesses to make them financially stronger.

“Everyone who got started with qualified plans when they rolled out was able to retire comfortably.”

Read more: https://cashflowtactics.com/2020/06/11/why-business-owners-should-never-use-a-401k/