If you choose other...please state what the "other" is.

I have found over the years that often the best investment for small business owners is themselves. Now with good guidance, they could use any of the options, but like in most circumstances, it depends on the situation.

I believe the general answer is that if you truly need funds and you have no other means than your retirment money, then a solo(k) is the best option. You can borrow up to 50% and pay yourself back plus interest over five years.

About the solo(k): Most people are unaware of solo(k) accounts, and many CPA`s still recommended SEP`s (like a profit sharing plan). A solo(k) has two benefits, first as an employee you are able to put away up to 100% of your w-2 salary up to 15,000 annually or 20,000 if you are over age 50. In addition, you have a built in profit-sharing plan where as an solo employer you can put an additional 0-25% of the w-2 salary for a total tax-deductible contribution between $45-$50,000. Another example is to purchase tax deductible life insurance in the plan and later swap for cash at a discount...this is a good one, and I anticipate hearing questions about this.

 

We have RRSP`s in Canada.  Same idea as a 401K!

I am of the believe that if you are trulty confident in the success of your venture, you would be willing to risk it all. 

That being said I voted on the comprimise!  Borrowing half, or even against a portion if you are close to "retirement" would be a good balance.

If retirement is several years away, and in the event that something out of your control, or unforeseeable happens, you still have time to bolster the ol 401K, I would risk it all!

Any question on risk tolerance is purely subjective, and will depend on too many factors.  Interesting to see these stats so far though...thanks for the thread!

I withdrew from my IRA which was once my 401k to fund patent
expenses. I didn`t mind doing it either. I`m in my early 30s and I know
by the time I retire, what is currently my "retirement fund" will be a drop
in the bucket.