Small Business Discussion

Out of context: Reply #6

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    No loans here, but I have a line of credit for my business that I use. CC's are paid off in full every month.

    Best new discovery is a self-directed 401k. You can actually lend yourself 50% of what is in the 401k, up to $50k. You determine the interest rate (you are paying yourself the interest rate) and the only other requirement is that it's paid back in 5 years. So, technically, I am taking the first loan in 15 years. It's really great, wish I had known about it ages ago.

    You can also buy real estate with it, commodities, etc.

    • HHmmmmmm...... i wonder if we have similar thing in canada.....pango
    • Worth asking. I hired a company to set it up for me, it's a book of paper work. Regular brokerages won't support them.formed
    • @pango, we can only borrow from our rrsps to purchase a home for the first time.Gnash
    • ya i knew about that.... too bad it's only housing...pango
    • ...and hockey sticksGnash
    • I believe you can pull from your RRSP but you pay the tax (HST or GST - I'm not sure) on the amount - since it then becomes taxable income... I think!Centigrade
    • ^ that's true. but you'd never want to do that. you're paying 40% off the top (if that's your tax bracket). not worth it unless you're desperateGnash
    • ^ you pay income tax, not sales taxGnash

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