Guidant Financial Group Blog

The reality is hard to face: The country has been hit by a severe economic calamity. We know this not only by depressing media reports but by the number of calls we’re receiving from worried clients. Please be assured that we are here to support you in any way we can during this crisis.

Even though credit is extremely tight and the financial stability of some of our favorite companies and institutions is “iffy,” Guidant offers you options that could be particularly useful at this time.

To help you face the crisis armed with good and reliable information, below are some of the most common questions we are hearing from clients, along with our answers to them. As always, we are available at any time to aid you in understanding your opportunities (and challenges) and to offer insights that will help you weather this economic storm.

Q. I was getting ready to roll my funds into one of your products, but now my account isn’t worth as much. What should I do?
A. Many people are simply choosing to wait until the turbulence subsides before making any moves with their funds. This, however, begs the question: Is the potential loss or gain of staying put greater than the potential gain of rolling your funds into a self-directed vehicle? Although this is a question that only you can answer, here are two important factors to consider:

• Through a Guidant self-directed IRA LLC, you can take advantage now of investments like foreclosures, property auctions, and hard-money loans. These have a reputation for being solid investments during recessionary times. Every day we hear the stories of clients who are growing their retirement accounts by purchasing foreclosures at incredible prices or assisting friends and small businesses with personal loans.


• The matter of personal control is another important consideration. No matter how the markets are behaving, if you don’t choose your own investments, then those choices are made by others – oftentimes by firms or institutions that have little or no concern for your financial welfare. Whether you use a self-directed structure to invest your retirement funds into alternative investments or into a small business you own and run yourself, the success or failure rests completely with you.

Q. Should I start a small business at this time?
A. If your goal is to own a business, you may find that now may actually be the best time to use your funds to buy your own business via our 401(k) small business financing solution. Predictions are that credit will be significantly harder (maybe even impossible) to secure in the near future. SBA loans, home equity lines of credit, unsecured loans, bridge loans – all debt-related products – may soon be unobtainable. Consequently, if you are planning to use your retirement funds as a down payment on a loan, those funds may go farther now rather than later. Additionally, we are hearing encouraging reports of Guidant clients who are buying existing businesses at greatly reduced prices from overextended owners eager to sell their enterprises.

Q. I already own a small business I purchased through your 401(k) financing vehicle, so how will I be affected?
A. By using Guidant’s 401(k) small business financing plan to buy/invest in your business, you have already given yourself extra financial security. By using your own funds to buy the business, you will not have to worry about a lender closing your line of credit, raising your interest rates or demanding early payment. This also means that (in the worst scenario) if your business fails, your personal credit will not be affected.

Q. I’m in the midst of setting up my Guidant rollover accounts, but my bank looks like it’s going under. Should I roll my funds into a temporary IRA?
A. If this is your situation, call us immediately. Rolling your funds into a non-Guidant IRA/401(k) could delay your funding process by several days or weeks because we would need to begin the setup process over again. We will work with you to find a solution that will serve you and your business goals best.