Guidant Financial Group Blog

NuWire Investor just came out with a great article outlining some of Mexico’s tax laws that apply in real estate transactions (Mexico Real Estate: How to Navigate Mexican Tax Law). It seems that each month we get progressively more calls about purchasing foreign real estate with a self-directed IRA. It is always important to familiarize yourself with the foreign laws applicable to your transaction.

This article points out that a corporation or a specialized trust will need to be created to hold the property and that any taxes will need to be filed by a Mexican accountant if the property is held in a Mexican corporation – all important things to know!

Can IRA funds be used to start a business? Or do you have to purchase an already existing business? I am looking to start a consulting business.

-- Tom (Worcester, Mass.)

You can absolutely launch your own business with IRA funds! Guidant’s 401(k) small business financing solution can be used to start a new business or franchise, or it can be used to purchase an existing business or franchise - as long as the business is a legitimate operating company.

An operating company is a business that is engaged in the sale or exchange of a product or service. We’re often asked if one can “invest” as a business. The answer is generally no. The investment of capital is money paid to purchase a capital asset or fixed asset. Therefore, if you were to start or purchase a business that did not engage in transactions with third parties (i.e., holding a piece of property for appreciation long-term), or that invested capital as its main business activity (i.e., a lending institution or bank), the business would not qualify as an operating company and thus could not us our 401(k) small business financing solution.

Do you have an Ask the Expert question? Submit your questions to asktheexpert@guidantfinancial.com.

Many of our clients struggle with determining what kind of life they want to lead as an entrepreneur. Do they want to work from home, or do they want a true storefront, something they can call their own and show to the world? In a recent survey of our 401(k) Small Business Financing clients, this struggle was evident – 44% of respondents worked from home, whereas 56% decided to open a store-front location. There is obviously no clear winner here!

For those who do decide to work from home, however, there can be some unexpected trials to overcome. While being able to make your own hours and answer to no one but yourself may sound appealing, these same benefits can become the aspect of the business entrepreneurs find hardest to adjust to. In a recent article in Entrepreneur Magazine entitled “Running a Company From Home,” Inventions columnist Tamara Monosoff lists off ways to ensure that the benefits of working from home don’t drive you mad.

Some of her tips:
- Structure is essential
- Get help if you need it
- Create your own work zone
- Know when to leave the office
- Keep one calendar
- Make a move if you need to

Guidant Financial Group has (obviously) started a blog! Our purpose in starting a blog is to create a place where we can comment on the latest news affecting our prospective and existing clients, as well as provide a forum for feedback, comments and questions.

Additionally, we want to provide some perspective on our company and the people who work here. Financial institutions have the connotation of being disconnected and sterile. The nature of Guidant’s business, however, makes us different. We are a non-traditional financial company, providing our clients with the opportunity to invest in alternative investments. As such, we have a non-traditional approach. We like to think of ourselves as a financial company with personality included!

In these postings you will see several things We will:

• post commentary and links to news that is important to our clients;
• keep you updated on happenings in the company and with our clients;
• use this blog as a forum to answer your questions about our services and the types of investments you are interested in.

We encourage you to comment on and interact with this blog as much as possible.

Of course, as with any blog, we need to add our disclaimer (yes, our attorneys made us include this). For the full disclaimer, you can click here; however, the gist is that even though topics may be discussed on this blog that involve legal or investment issues, nothing on this blog shall be deemed to constitute the practice of law, legal advice or investment advice.

Additionally, we will be linking to other sites that we think have relevant content. The sites may not be Guidant properties and thus we cannot verify the accuracy of such information or the validity of the business. Guidant cannot be held responsible for any damages that occurred as a result.

So! Enough with the legal mumbo-jumbo, and let's get blogging!