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When you look out upon your financial horizon do you see bright, sunny skies, or long dark nights? 

Many entrepreneurs throw tons of money back into building their businesses without thinking about their financial futures. However, it is possible to have both with the right type of financial plan.   

On the latest edition of the Inner Edison Podcast with Ed Parcut, we talked about a little known financial decision that can help solopreneurs. 

If you’re a solopreneur, or want to be, you’re not going to want to miss what Daniel Blue had to say about the one financial plan that many solopreneurs are missing out on.

Who is Daniel Blue?  

Daniel Blue’s entrepreneurial journey started with many highs and lows. Between the ages of 18 to 20, he dropped out of college, got his girlfriend pregnant, and became addicted to oxycontin. 

At 19, he started his journey in sales earning six-figures selling real estate coaching, but without knowledge about how to manage money, he dumped a ton of his earnings into a home during the peak of the seller’s market in 2008 only to lose it. 

Additionally, he took some bad advice from a sales colleague. He made the poor financial decision of deferring his taxes on his six-figure income only to owe the IRS a ton of money in back taxes at the end of the year, which he didn’t have. 

His life was a rollercoaster. Through the highs and lows, he learned a great deal about himself and how to manage his finances. As he puts it, “I learned not to put my hand back on the stove.”

Today, he helps solopreneurs learn how to leverage their money and make wise financial decisions to power their companies, and their financial futures. 

The One Financial Opportunity Made for Solopreneurs

The one account that can change your financial destiny is called the Solo 401K. It is the perfect plan for entrepreneurs who don’t have any W-2 employees, other than themselves or a spouse. 

What makes the Solo 401K special is that you can use this money tax-free without any penalties. There is a loan feature on the plan where you can use the savings to start a business, to invest in real estate, and more. 

The Solo 401K is a self-directed retirement account, which means you’re free to invest in what you want. You can invest in crypto, private equity, precious metals, rentals, house flips, private lending. 

That means you can invest outside the stock market, and use loan features penalty-free to pay off credit card debt, fund your business, etc. 

The maximum you can put into a Solo 401K is $58,000 per year. Compare that to an IRA where your maximum is roughly $7,000, you can see the value. And with an IRA, you can’t take out money from your IRA without penalties. 

The Solo 401K is a great way to have more fluidity. 

Consider The Possibilities 

If you’ve been dreaming about starting your own business, but don’t have the capital, a Solo 401K may be a great opportunity for you. 

You can take an IRA, 403B, or some other retirement fund and move it over to a Solo 401K to make your retirement funds more fluid. You can use that money tax-free and penalty-free and then pay back the loan over time. 

For many entrepreneurs looking to get started, this can be a brilliant way to start your entrepreneurial journey. 

If you’re looking for more information on how you can start this for yourself, check out Quest Education to get started. If you’re looking for more ways to plan for retirement, make sure to check out Daniel’s book Blueprint to Your Best Retirement.

Need guidance, check out Daniel’s online course, The Quest Way. 

To find more great podcast interviews and articles, check out the Inner Edison Podcast with Ed Parcaut.