Funding new business using 401K

Discussion in 'Ask An Owner Operator' started by Pieter78, Jul 8, 2018.

  1. TallJoe

    TallJoe Road Train Member

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    With this business 401K financing, since this is technically a retirement fund, is there any more protection from potential liabilities such as at fault accident or bankruptcy, just like IRAs accounts are?
     
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  3. Ridgeline

    Ridgeline Road Train Member

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    No.

    This is one of the rubs, the corporation still carriers the liability, so if you have say $100k involved as the investment and it is sued, it falls on that corporation to pay any judgements against it.
     
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  4. taodnt

    taodnt Light Load Member

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    I spent most of my dough on booze, broads and boats and the rest I wasted.

    Elmore Leonard
     
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  5. Accidental Trucker

    Accidental Trucker Road Train Member

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    Well, we disagree. Look at it this way. When you invest in a mutual fund, say the Russel 2000, and one company runs off the rails, you won't eat a bite of steak less because of it. If you're own company fails... Now, if your employer fails and takes your retirement with it? Yikes.

    We also disagree on the "speculative nature" of the stock market. Yes, there are "fundamentals" and there are "sentiment" factors. The fundamentals are always there, and the market always obeys the fundamentals.... but "sentiment" does influence things in the short term. The solution to that, to state the obvious, is to invest in the market only long term. The short term swings simply don't matter.

    It's a lot like driving and flying. We all know that flying is far, far, FAR safer than driving, but very few of us are really comfortable flying. We'd rather be in control and drive. Even if it's an illusion of safety.
     
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  6. ParatusVE

    ParatusVE Bobtail Member

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    Hey Red,
    I know this is an old post, but I'm looking for info on Guidant and 401k setup, can you PM me?
     
  7. REO6205

    REO6205 Trucker Forum STAFF Staff Member

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    @RedForeman ......I flagged him for you.
     
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  8. ParatusVE

    ParatusVE Bobtail Member

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    Thank you!
     
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