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Small Business Financing:The Guidant 401(k) Plan

Discussion in 'The Okie Corral' started by JMag, Jan 16, 2010.

  1. JMag

    JMag

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    http://www.guidantfinancial.com/products/small-business-financing/default.aspx

    Instead of traditional small business financing or franchise financing, many entrepreneurs and business owners have used the Guidant 401(k) plan. By rolling your existing retirement funds into Guidant’s 401(k) plan you can invest in a small business or franchise inside your retirement plan... without tax penalties!

    Guidant’s 401(k) plan, is an alternative to small business financing that allows you to invest in something you can truly control while significantly affecting its value. Lower the overhead of your new business and enjoy higher retirement-account returns along with other outstanding benefits:

    * Utilize funds from retirement accounts like IRAs, 401(k)s, 403(b)s, Keoghs, SEPs, etc., without incurring early distribution taxes or penalties
    * Launch your small business or franchise with minimal (if any) debt while securing significant tax benefits
    * Use up to 100% of your retirement funds, or use a portion as a down payment on an SBA, unsecured or home equity loan
    * Combine your retirement funds with the retirement funds of a business partner or spouse
    * Save thousands in interest fees and protect your personal credit
    * Invest profits tax-deferred back into your business or pension plan
    * Lower business overhead while aggressively growing your retirement account
    * Position yourself for faster success!

    The Guidant 401(k) plan for small business investing and financial expertise saves you time, expense and worry.

    ************************************************

    I'm not looking to dive into this, but I was reading about the company and its offerings and thought someone here might be interested with the economy being as it is.

    Anyone made such a move?
     
    Last edited: Jan 16, 2010
  2. certifiedfunds

    certifiedfunds Cosmopolitan Bias

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    I'm not sure what to think, frankly.

    One one hand, its one of the riskiest places you can put your fallback retirement funds with an estimated 70-80% of small businesses failing within 5 years.

    On the other hand, starting a small business without debt is very, very attractive if qualified accounts are the only savings a person has.

    don't know
     

  3. Aurora

    Aurora

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  4. idahoglock

    idahoglock I'm Not Funny

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    It all depends on one's life circumstances. If you are in your early 30's it may not be all that much of a risk since you still have a lot of time to replenish the funds.

    I'm considering the option with a smaller rollerover from a former employer. Not all of the eggs in my basket, I keep my current job so I continue to grow my current 401k, and the wife has the capital to acquire her business.
     
  5. MO's Dink

    MO's Dink Giant Member

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    To start a small business, I don't like it. But a successful small businessman spinning off into something else and needing a little extra capital, it might not be a bad thing.