Andy Alberts, 39, had dreamed of business ownership ever since he was a teen and had helped out at his uncle’s bar and grill. “I caught a little bit of the fever then,” says the man who now owns the Touchdowns Sports Bar and Grill in Renton. “It just took 20 years to develop it.”
Andy’s “fever” had been so strong, in fact, he was prepared to decimate his retirement funds with an early distribution in order to make his dream come true. “I had worked for a corporation for many years building up my 401(k),” he says. “I expected to break into that account and pay the massive tax penalties if necessary to buy this place.”
Thanks to a fortunate twist of fate, a chance read of a Maaco franchise flyer saved him... and turned him into an evangelist for a unique type of business financing. “I wasn’t interested in the franchise, but I noticed a line in the flyer that said I could purchase a business using my retirement money now, before retirement, without having to pay taxes or penalties. I was intrigued.”
After checking with his accountant, Andy learned that this little-known account structure was not only legitimate but certain financial firms were even built around this strategy. “They’re called self-directed IRAs,” says Andy. “You can use them to purchase a business as an investment for your retirement account. It’s like investing in stocks and bonds, but instead you’re investing in yourself. The weird thing is, hardly anybody knows about them.”
While Andy was checking out this unique financing option, he continued working as the general manager of another bar and grill learning everything he could about the food service industry. In many ways, he’d been learning how to run his own business since he was a kid. “Yeah,” he laughs, “I was one of those kids who found golf balls then sold them at the golf course.”
That entrepreneurial spirit also drove him to check out three totally different enterprises, even though the bar and grill idea was closest to his heart. “While I was looking at potential businesses, I decided to get my financing in place so I could leap on the best opportunity when it arose,” he says.
After some heavy-duty perusing of the Internet, Andy found an account facilitator that would set up a variation of a self-directed IRA that utilized a 401(k) small business funding vehicle. “I chose to go with a Bellevue company, Guidant Financial Group, since they were local and I could really check them out.”
After numerous conversations, including time with an attorney, Andy was confident in his financing decision. He still hadn’t decided which business he would purchase, and then fate stepped in again. “I was driving to work past a restaurant that was on my route, and I noticed a ‘For Sale’ sign,” he says. “That was it. I knew it was perfect.” Not only was the place in Renton, where Andy himself lives, but it was large: two stories, 4000-square-feet, with a capacity of 206. “I didn’t want a small tavern. For me, it was all the way or nothing.”
Within five weeks, Andy purchased the business and started renovations. “I wanted my place to be a destination sports bar,” he says. “I’m a major sports fan and, because I grew up in Buffalo, New York, I always had a hard time finding ways to watch my home teams play. Renton is full of transplants, and I know that folks originally from other towns and even other countries wish they had a place to go to watch their home games.”
So Andy decided to provide that opportunity in a big way: By the time he and longtime girlfriend Julia Peckham had finished creating, designing and decorating Touchdowns Sports Bar and Grill, the place had 23 television sets ranging in size from a huge projection screen to some 32 inchers – all tuned to sports.
But Andy wanted the place to be known for more than its number of TV screens. “I created Touchdowns for people like me who want a clean, friendly, and comfortable place to hang out alone or in a group.” And he wanted the place to be fit for families and those who just like good, homemade food.
Since he opened on December 13, 2006, the menu has continued to evolve, with Andy’s hometown-style Buffalo wings remaining a favorite. Other menu items, such as freshly made chips and a Western New York-style sandwich served on a baked-on-premises Kimmelweck roll, keep Andy and his staff of 25 hopping most nights. “We had full capacity last January for both Seahawks playoff games,” he says. “And a pay-per-view boxing event on Cinco de Mayo packed the place, too.”
Now that Andy has made his dream come true, he struggles with ways to express how thrilled he is. “I almost can’t explain it,” he says. “It’s incredible. I really love what I do; I really like people. And Renton has some of the greatest, most fun and down-to-earth people.”
So what does he say to others considering buying a business? “I warn everybody that whatever you do, don’t take an early distribution on your retirement account. I tell them to use a 401(k) business financing solution like I did. If you work with the right people, you’ll save a bundle, your money never leaves your authority, and you become the one who defines your future.”
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