Should You Use Your Nest Egg to Fund Your Dreams?

Physician's Money Digest, January31 2004, Volume 11, Issue 2

Many look at retirement as the time to do all the things they've always dreamed of doing but didn't have the time. If you're newly retired and looking to open that new business you've always wanted or start a charity organization to fulfill your need to contribute, take care not to completely raid your retirement funds.

Time magazine suggests that retirees looking to invest their retirement in a new business endeavor first need to do their homework to be sure the service is something that could bring a profit. Also, only invest an amount you could afford to lose should your new venture not take off. Buying a franchise might provide you with the excitement you're looking for while providing a support system. Consider all areas of financing including small business loans, family and friends, and drawing from savings. Most of all, avoid risking your house by taking out a home equity loan.