They are trading no debt for “hope it pays off”…
My question is this. The Wall Street Journal presumes individual business ventures are risky. Fair enough. But they also presume that the stock market and mutual funds are “safe”. Is that true? Has that been true? Will it always be true? Under what conditions?
Oh well, just pondering out loud. Great article.
From WSJ.com
Entrepreneurs have always tapped their cash reserves to start businesses. But boomers are discovering they have a crucial advantage over younger businesspeople: They can draw on decades’ worth of savings to fund their start-ups. And that means much more latitude. Boomers don’t always have to spend valuable time and energy lining up loans. And they aren’t stuck making onerous debt payments on top of other business costs.
The boomers’ strategies vary widely. Some are going all-out and funding their ventures entirely with cash. Others are using their deep reserves more cautiously, using cash only for specific expenses such as inventory.
Of course, betting the nest egg carries big risks. If boomers lose a big chunk of their money, they may not have time to make back the cash. With that in mind, we asked small-business experts and boomer entrepreneurs to share their strategies for tapping a nest egg later in life.
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