Published by:
Larry Myler, FORBES
April 28, 2017
As an entrepreneur, you are used to taking risks. You’ve rejected the steady paycheck of an employer to become the employer. You’ve turned personal finances into company finances. You’re even prepared to go down with the ship, although you would really like to make sure that doesn’t happen.
Not everything has to be a risk, though. Some investments offer more security than others. With the right planning, you can secure earnings and sleep easy, knowing that a portion of your money is safe and growing. In order to offset the inherent risks of entrepreneurship, here are four of the best financial investments you can make for yourself, while you risk other assets in your business.
1. Equity Investment with Friends, Family, or Regulation A+
An equity investment is a good way to include friends, family, and interested individuals without demanding too much of them. In fact, according to Fundable, friends, and family make up the majority of investors, and 38% of startup founders raise money from their friends and family.
Last year, the SEC published groundbreaking new rules called “Regulation A+”, which allows startups to raise between $4M and $50M from main street investors. Sites like SeedInvest.com and ManhattanStreetCapital.com allow unaccredited investors (individuals with less than $1M net worth) to invest up to 10% of their self-reported net worth, not including their homes. “This is an unprecedented opportunity for mature startups and mid-stage companies, which we call scaleups,” said Rod Turner, CEO of Manhattan Street Capital. “Regulation A+ is still in its infancy and promises to be a major source of investment dollars in years to come.”
2. Insurance
A big part of personal risk management is insurance, in all its forms. Whether protecting your home, health, assets, ability to work, or any other valuable part of your life. Speaking of your life, you may want to start there.
Read the full article in Forbes.