Boomers Betting on Themselves

10% of the more than the 600,000 new businesses are funded by retirement savings. A study from the Center for Retirement Research at Boston College showed that on average, those age 60 to 62 have less than one quarter of what they need to keep living at their current standard. Merrill Lynch released another survey that showed that 84% of baby boomers suspect their retirement will not be like their parents. 70% of those surveyed plan to keep working to stay active.

Because boomers know their retirement money will not carry them as far, some pre-retirement boomers are betting on themselves instead of the stock market by buying businesses with their 401(k) and IRA retirement savings. Boomers just need to be sure that their rollover business startups comply with federal tax rules.

See Jerry Cooper, More Boomers Crack 401(k), IRA Nest Eggs to Start Own Businesses, The Trust Advisor, Feb. 27, 2011.