6 smart moves for older entrepreneurs

Don't invest more than 10% of your assets

Even the best-planned businesses can fail.

That's why you shouldn't invest more money than you can stand losing.

How much you can risk depends on your assets, liquid and otherwise, age and health.

As a general rule of thumb, you probably shouldn't invest more than 10% of your liquid assets.

So if you've got $300,000 socked away in your 401(k), IRA and cash accounts, limit your business investment to $30,000 of your own money.

You'll want to avoid tapping your retirement funds if they're going to trigger a penalty and taxes.

Ideally you don't want to pay interest, but if you only have a year or two until you can touch your IRA, it may be best to take a short loan for start-up capital, then repay it when you can tap your retirement funds.

The interest on the loan may work out to be cheaper than the penalty on an early withdrawal of dividends from your IRA. Plus, the interest could be tax-deductible.