So remember way back when I think, you know, first two weeks we talked about Brittany and her, her jewelry company ABC jewels.

Well, now, you know, she's gotten her net accounts. She's starting to get some revolving accounts reporting to her business credit reports.

But she still needs a bit of money. So she's went to her financial advisor. And she wants to have conversation with them about whether or not she can borrow from her 401k to help continue to fund her business.

Now, do you think this is something that she can legally do? Yes or no? And why let's go ahead and like to chat up. So she wants to borrow from her 401k to help fund her business. Is this something that she can do as an entrepreneur.

Okay, I got a yes so far. Yep.

Yep, but she will be tax yep. Yep. Now we'll talk about that that tax part because there's a difference between a taking out a loan from our retirement and withdrawing from our retirement. All right.

So the thing that I think is going to be more important for us to think about a couple of things before we even think about going this route.

First and foremost, loan versus a withdrawal. So alone, you're borrowing against the money that you're investing in right. So even though you're taking that money out, you it's basically like a secured loan right you're taking that loan out against your money.

That's already reporting. And the good thing about borrowing, taking out a loan against your 401k is that you'll still be getting at interest even though you'll be paying it back. Right.

So the difference between that and a withdrawal is once you withdraw something. And if you're under the age of 60, you'll be hit with, you know, tax penalties, the 10% federal and independent on the state, they might also come hit you with some some state tax as well.

And whenever you're thinking about your 401k, go for loans over with draws make withdraws kind of like that last last resort like this is the only funding source that I have access to and it's the money that I have.

And I'm okay with getting that 10% penalty against the different below 60.

But you know, the kind of stipulation with loans that we often don't think about is you can only borrow, you can only take out loans of those 401k accounts for employers that you're actively with.

So again, like unless you are with that employee right now, nine times out of 10, like that 401k account won't let you borrow against it because you no longer work with them.

They will give you the option to withdraw, which you know every you can do from every 401k account that you have. But again, like I would try to like if you could roll over all of those into that active method of employment that you have because then that total amount will be rolled over into that one account and you'll be able to borrow from that as opposed to, you know, only having withdrawal restrictions if it's sitting on their own accounts.

And then definitely to think about in terms of you know, overall consideration for your person as well as your business, because when you talking about your 401 when you have like multiple accounts, you kind of want to see whether or not you want to roll them over into one or you know maybe roll them over into IRA, which is another place that you know can be a place that you can get some money and kind of think about.

But in general, 401k is a great resource that I want us to keep in mind if ever we need to, but just understand the stipulations based on where you are in your personal like employment journey and how that might work out with taking this up as a source.

Alright, so some other kind of forms that you know are out there and will be a bit dependent on where we are in our journey and I think will become much more sufficient as we kind of get you know more months and years under our belts.

In terms of our overall business so equipment financing, I think is a great place. One, because it provides an opportunity to add installment type accounts.

You know largely because that's a lot of the equipment that you would be leasing across industries would be on like that that installment kind of like method.

So that would be a great great space one because even though you are taking money out or borrowing money to get this, the kind of what you're recoup in terms of actually needing that equipment to conduct your business to maybe automate some processes or whatever that equipment means to you your particular business and the niche that you operate in.

Having that is something that could boost those profits that will not only repay whatever monthly installment you have to pay against the equipment, but it also help you bring in profit as well.

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