Latest / Small Biz Florida / Ep 421 | Beyond the Business Loan: Exploring Retirement Funds as Startup Capital with Mickey Parker

Transcript

Ep 421 | Beyond the Business Loan: Exploring Retirement Funds as Startup Capital with Mickey Parker · Small Biz Florida

• 0:00
  Welcome to Small Biz Florida, your go-to podcast for all things small business in the Sunshine State.
• 0:08
  This podcast is sponsored by Florida First Capital, your trusted partner for financing and support.
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  Here, you'll discover the latest news, trends, and invaluable resources to help you grow and succeed.
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  From startup strategies to scaling your business, we've got you covered.
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  Join us as we explore the vibrant Florida small business ecosystem
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  and connect you with the experts who can make a real difference.
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  And now, please welcome your host, Tom Kindred,
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  Regional Director of the Small Business Development Center at Indian River State College.
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  This is Small Biz Florida, the podcast and broadcast that's all things business across the state of Florida.
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  And we are at the 2026 Small Business Success Summit.
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  The room is absolutely full of entrepreneurs, small business owners.
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  The conversation and discussions are all about Florida's small business community.
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  Breakouts, trainings to help small business owners grow, scale, and be successful in business.
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  The lobby is absolutely full of organizations, companies that are providing tools, resources, and support for small business owners.
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  So, just an incredibly valuable gathering for small business owners.
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  All taking place here at the Sun Seeker Resort in Charlotte Harbor, Florida.
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  We have with us now one of those very innovative, valuable resources for entrepreneurs, small business owners.
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  We've got our good friend, Mickey Parker, who is the founder and CEO of Acela Fund.
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  Mickey, welcome to Small Biz Florida.
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  Thank you. I'm glad to be here.
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  Absolutely.
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  You are an exhibitor here at the 2026 Small Business Success Summit.
• 1:56
  I am. Yes.
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  Listen, we appreciate the time here on Small Biz Florida.
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  This is an important conversation, incredible tool and resource that small business owners need to know about.
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  So, looking forward to the conversation.
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  But let's start as we always do, Mickey.
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  Just a little bit of your background, pathway to your current role as CEO of Acela Fund.
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  Sure, absolutely.
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  I am a CPA.
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  Obviously, my background in accounting and finance.
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  Always been in small business.
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  Entrepreneurial, successful entrepreneurs.
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  About 15 years ago, got involved with Acela Fund.
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  And it has been a rewarding process of helping entrepreneurs fund their business.
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  It was such a process, enjoyable process, that when I had the opportunity to actually buy Acela Fund, I used my retirement account to do that.
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  And that's been very important.
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  Nice.
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  So, let's get right into it.
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  I've had this conversation before.
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  I thought it was, you know, an incredible resource that small business owners need to hear about.
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  So, what Acela Fund is involved in is a process where an individual can leverage their 401k as startup funding.
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  Did I get that right?
• 3:23
  That's exactly right.
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  Okay.
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  Tell us how it all works.
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  Yeah, we basically look at it as a five-step process.
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  By IRS rule, the entity that is funded must be a C-Corp.
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  So, we will help them form their C-Corp or they can do it themselves or have their attorney do it.
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  The second step is a retirement account.
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  That corporation is going to adopt its own retirement plan.
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  So, at that point, you have really an unfunded company, an unfunded retirement plan.
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  So, that's when we do a rollover.
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  They can roll over their funds from an existing 401k, IRA, 403b, 457b, simple SEP, even a government thrift plan for those who might be leaving the government and wanting to find a way to finance a business.
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  Once those funds are rolled over, then they're going to have an investment option.
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  What are they going to do with those funds once they get them in that plan?
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  So, I tell people, think about their existing IRA or 401k.
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  And they go online and they have various investment options, various mutual funds.
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  Maybe it's a 500 fund, index fund.
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  But what if one of the options in that list was stock in your own company?
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  And that's what this is.
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  We basically help them create that box to invest in their own company.
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  So, we have the stock subscription agreements, the documentation that says their retirement plan account is going to invest in the stock of that corporation that we formed back in step one.
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  So, the money essentially rolls over out of the retirement account into their corporate checking account.
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  They are now funded.
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  They now have money in their corporate checking account from their retirement fund.
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  In return, the C-Corp is going to issue their retirement plan a stock certificate because this is an equity investment.
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  It's not a loan.
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  And therefore, there's no obligation to, there's no debt payment.
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  There's no obligation to pay it back.
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  Okay.
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  And I guess what this allows that entrepreneur or small business owner to do is allows us, frankly, to skip that very difficult first step of trying to get capital for a startup, which is usually non-existent.
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  I think the biggest thing is that it opens up an avenue that they didn't know existed.
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  If they have an IRA or a 401k, their first thought is, number one, I'm not going to use it.
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  But number two, if they decide to use it, they think, I'm going to have to pay taxes and penalties.
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  You know, that can be pretty steep for someone under 59 and a half.
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  They're not only going to pay federal, state, and now a 10% early withdrawal penalty.
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  This eliminates that because they're never withdrawing it from the plan.
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  They're just choosing a different investment option in their plan.
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  Right.
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  And this, you know, this really sounds like an incredible, thoughtful, intelligent way to start that side hustle, to start that, you know, that small business.
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  Absolutely.
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  While you're continuing to contribute to your 401k from your daytime job.
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  But what a great way, instead of going to the bank and instead of putting yourself into debt, you're investing in yourself.
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  You're taking that money and really investing it in yourself.
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  And that's one of the questions that I get all the time is, Mickey, I can't believe you're recommending people invest their retirement account in something as risky as starting a business.
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  And I'm like, I'm really, I don't have to recommend it.
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  I'm just telling you the options available because there's a good chance, again, you didn't know that option was available.
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  One thing I will back up on that we have to be careful with on the rollover.
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  If you are an existing employee and you're contributing, there's a good chance your employer's plan will not allow you to roll those funds over.
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  Most of my clients are people who have left a job.
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  So they're corporate, they're tired of what they're doing, and they want to go do something on their own.
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  Now, if somebody has an employer plan, but they had a previous employer that they had a 401k, those are rollover funds and those could possibly be available to put into the new business.
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  So definitely an important footnote and caveat.
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  So if I'm currently employed and I'm currently investing in my 401k, I can't leverage those.
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  More often than not, that's the truth.
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  What we tell clients is go ask your employer or the custodian of the money, a Fidelity, Schwab,
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  is there any portion of these funds that I can take while I'm still working that can I roll them over to another qualified plan?
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  The vast majority of the time, most plans are written that you do not have that option.
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  But I have had clients who have made that inquiry and found out they did have funds available.
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  And again, I like your story about folks saying, I can't believe you'd suggest.
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  And I think all of this, with any small business entrepreneurship, comes risk.
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  No doubt about that.
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  Of course, I would never suggest or recommend anyone completely wipe out your 401k.
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  But I think using a tool like this versus going and accruing some debt, this makes a whole lot more sense.
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  I think it does increase your probability of success because of not having the debt service.
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  Right.
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  It's a cash flow issue to be able to use funds that are equity and not debt.
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  And I don't think this also does not supplement or forego one's need to create a business plan, do your homework, do your marketing research.
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  I mean, you got to do all of those steps, too.
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  But I think this is certainly an option for that startup.
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  Yeah, absolutely.
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  And we work with the SBDC and highly recommend that clients who come to me, I can usually kind of tell whether they're seasoned or not or know what they're doing.
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  And I'm always like, go talk to your SBDC advisor.
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  Their services are free.
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  Use them.
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  Right.
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  And so, yes, I think that's very important that they have all the other pieces in place.
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  This is just this is just part of the funding piece.
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  Let me ask you this.
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  So going the other way back into your 401k.
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  So let's say the entrepreneur, you know, leverages his 401k for twenty five thousand dollars to to start this side hustle small business.
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  He becomes successful.
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  Is there an advantage to paying your 401k back?
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  Is that or does does it matter at that point?
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  Is no, I certainly think that there's an advantage to doing that.
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  You don't have to.
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  I've got clients who did this, funded their business with their with their IRA 22 years ago when that when our company first started that are still clients of ours today.
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  Now, I've had clients who did this and within three years had generated enough cash within the business that they could buy the stock back.
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  The part of one of the exit options is simply have the company take its cash, put it back into the retirement plan and remove that stock from the plan.
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  There are other options.
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  One of them is is simply a sale of the business.
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  Right.
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  If someone ends up selling their business, the cash that's in the corporation, once all this is is done, the proceeds end up going back into their retirement account.
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  All right.
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  Okay.
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  How does one find a cell phone, Mickey?
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  Best option.
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  Our website, www.accellafund.com.
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  They can always call me.
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  My number 913-274-1930.
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  So don't hesitate to reach out again.
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  I spend the vast majority of my time in the educational role because most people don't know about it.
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  So I'm happy to have that conversation kind of from from day one.
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  Where are you located?
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  I'm in the Kansas City area.
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  I'm in Lenexa, Kansas, but we do.
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  We have clients from from coast to coast.
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  Okay.
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  And I should ask, too, what is your business model?
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  How how do you engage your clients?
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  Sure.
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  Well, most of it comes from advertising.
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  They're calling me direct from referral partners, the SBDC.
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  And we'll have that conversation.
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  And if they decide that this is something they want to do and do it with with our firm, we charge a fee.
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  It's a flat fee.
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  It's not based on the amount they roll over.
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  We also provide the third party administration services for that retirement plan that gets created.
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  So that's a source of income to us.
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  All right.
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  Okay.
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  Nice.
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  So, Mickey, we appreciate this information.
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  I think it's I think it's really innovative.
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  Like I say, I have heard of this and and may have had a conversation previously about it, but very innovative.
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  We appreciate your time here on Small Biz Florida.
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  Appreciate your support of the Small Business Success Summit as an exhibitor.
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  Absolutely.
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  And thank you for your support of our small business community here in Florida.
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  I appreciate you having me on.
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  Absolutely.
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  Thank you.
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  This is Small Biz Florida.
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  I am Tom Kinderger, host.
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  It is all about entrepreneurship and small business here at the 2026 Small Business Success Summit,
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  all taking place here at the beautiful Sunseeker Resort in Charlotte Harbor.
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  Stay tuned.
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  A whole lot more to come.
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  This is Small Biz Florida.
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  That's all for this episode of Small Biz Florida.
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  We hope you found valuable insights and inspiration to fuel your entrepreneurial journey.
• 13:55
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  So follow us for exclusive content and connect with fellow Florida small business owners.
• 14:10
  And for even more resources and support, visit our website at floridasbdc.org forward slash podcast.
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  That's floridasbdc.org forward slash podcast.
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  Until then, keep innovating and keep growing.
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  Thanks for listening.
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  Bye.
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  Bye.
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  Bye.
• 14:28
  Bye.
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  Bye.
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  you
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  you