Guidant Financial Group Blog

In the spirit of the holiday, we decided to highlight the ghoulish businesses that some of our clients considered.

When they tell you that there is a franchise for just about every business concept out there … they aren’t yanking your chain!

In August, NuWire Investor highlighted the five most unique franchises they could find (see Franchises for the Eccentric Entrepreneur). Guess what number one was?

1-800-AUTOPSY.

Yes, really. 1-800-AUTOPSY. According to NuWire:

“This franchise is exactly what it sounds like it is: a stand-alone service that performs autopsies. The company was founded by Vidal Herrera in 1988 and began as a one-man operation (no pun intended). 1-800-AUTOPSY franchises offer a variety of services, including toxicology and post-mortem DNA analysis, tissue procurement and, of course, autopsies. Clients include families who want private autopsies performed on deceased loved ones, malpractice lawyers seeking evidence for a trial and medical examiners, pathologists, and schools who need extra assistance."

If a private enterprise is more your style, you could always purchase a lot of land and open your own cemetery. With our ageing population, finding a desirable plot to spend the rest of your afterlife could be as difficult as finding a rent-controlled apartment in New York City (or so we hear). Additionally, there is always the opportunity to expand your services – casket sales, mortuary services and funeral services are all viable add-ons for this ground-level (or under) enterprise.

Interested in learning more? Check out another NuWire gem, Cemeteries: a Grave Business.

If real dead bodies aren’t really your thing, you can always get into the Halloween business. Like any other holiday, Halloween is a potential money-maker. One of Guidant’s existing 401(k) Small Business Financing clients used his skills as a professional ghost hunter to start a business in the Halloween industry (known to industry-insiders as the “fright” industry). He is currently planning a Halloween Expo for 2010 that will include all kinds of frightful vendors and even a zombie walk!

We hope you and your family have a safe and happy Halloween – and remember, it doesn’t have to end! At least not if you have a 1-800-AUTOPSY franchise!

In this time of economic turmoil it is extremely rare to hear of a financial company experiencing recognizable growth. As rare as it may be, Guidant was, in fact, acknowledged for its growing power at last night’s banquet for the 100 Fastest-Growing Private Companies in Washington State, put on by the Puget Sound Business Journal.

For all of our existing clients in the state of Georgia, we bring you important information regarding a potential scam.

An entity calling itself Georgia Corporate Compliance has been mailing offers to Georgia corporations to complete corporate meeting minutes on behalf of the corporation for a fee. The Georgia Secretary of State generally does not require corporations to file corporate minutes with the State, thus attaining their services is an unnecessary expense.

The most concerning part of this potential scam is the way in which the offer is presented.

“First, the solicitations are presented in a form similar to forms sent out by the Georgia Secretary of State’s Office,” reported the office in a January press release. “Second, the solicitation includes an official-looking seal. Third, the solicitations contain a limited response time. Although the solicitation contains a disclaimer stating that Georgia Corporate Compliance is not affiliated or endorsed by any government agency, many customers have been understandably confused by the official-looking documents.”

The Secretary of State issued a press release earlier this year regarding this matter. To view the full release, click here.

While this has been an ongoing issue in Georgia for almost a year, with year-end filings quickly approaching, we want all our clients to be aware of this potential scam. If you have received any unsolicited offer to provide services for the filing of corporate documents, we encourage you to check with your Secretary of State to ensure that the services offered are, in fact, required.

For those who may have already acquired the services of Georgia Corporate Compliance, the Secretary of State assures that this will not affect their corporate filings, “either positively or negatively.”

Guidant Financial Group-Not a Scam

There is no doubt that the world is feeling the effects of the current economic climate. The credit squeeze is putting pressure on many people and businesses. Today we are hearing Warren Buffet is investing billions, while at the same time, Jim Cramer says to take your money out of the market if you need it in the next five years. There are reports that suggest a recession, maybe even a depression. With so much “noise,” how will you ever know what to do?

Please join Guidant Financial Group’s CEO for a webinar to hear how today’s economy is impacting self-directed investors. Stephan Roche, CEO of Amplio Corporation and Jeremy Ames, CEO of www.NuWireInvestor.com join Mr. Nilssen in a discussion about cutting through the noise.

Cutting Through the Noise
Simple explanations to make sense of today’s uncertain economic climate.

Date: October 21, 2008
Time: 10:30a – 11:30a PST

REGISTER NOW by visiting: https://www2.gotomeeting.com/register/770160580

In this presentation you can expect to hear about:

* whether the U.S. is heading into a depression;
* how the $700B rescue package could affect the economy;
* what Guidant is doing to adapt to the changing market;
* how self-directed investors could be affected by these issues;
* investment strategies for volatile and uncertain marketplaces; and
* the recent investment trends displayed by Guidant’s clients.

Also, hear how some individuals are opening a checkbook control self-directed IRA at NO CHARGE through www.freeselfdirectedira.org.

Our goal has always been to ensure you have the support you need to be successful. We believe that, when armed with the right information, tools and opportunities, people can make the right wealth-building decisions for themselves.

REGISTER NOW to ensure your participation in this timely event.

Need more information? Call us toll-free at 888-472-4455.

It’s amazing the things you can make money from. For instance, have you ever felt like breaking something?

The Dow just closed down 733 points, the race to the Whitehouse has graduated from a friendly game of peewee football to a full-fledged rugby match (complete with mudslinging), and the Cubs’ World Series hopes have been dashed yet again.

How about now? Ready to fling that antique vase or ceramic chip-and-dip across the room? Well, maybe your 401(k) could benefit from your (and everyone else’s) rage.

In a recent post by TheBrinkTank, writer Trenton Flock explores Sarah’s Smash Shack, an innovative new business in San Diego where patrons can buy a box of smashables for $10-45 to do with what they will (hint: there’s a stainless steel wall in the establishment).

The fact of the matter is that, although things look bleak in the securities market, you don’t have to invest your money there.

You don’t have to invest your money there.

The stock market has many benefits and each investor should work with their own professionals to determine what the best investment strategy is, but a little diversity never hurt anybody (well, unless that diversification involves an even more destructive enterprise than Sarah’s Smash Shack – but we won’t go there).

We are sure that many of our clients are actually profiting from the economic downturn. While we don’t advocate it, the recent drop in stock values has led many investors to the bottle – something that has got to make Guidant client Andy Alberts, owner of Touchdowns Sports Bar, happy.

Furthermore, the drop in housing values and subsequent hike in rent has made many Guidant self-directed IRA clients a profitable return on their rental properties.

People have some pretty amazing ideas – and even more people will pay for some pretty amazing (and amazingly random) things. What are you doing to deal with this nail-biter economy? Maybe it could be the profitable investment that your IRA is missing!

Historical wisdom has it that now is the time to bunker down and wait for the economic storm to blow over. But a new article in BusinessWeek (see Starting a Business in a Downturn) points out that if you’re willing to put on your galoshes and grab a strong umbrella, you may be among the first to see the rainbow through the raindrops.

It is true that any business starting up right now has some unique challenges to face. But, surprisingly, starting a business now has some particularly appealing advantages, too.

According to Peter Justin of MyBizHomepage.com, entrepreneurs who won’t let a little rain bother them may find that economic showers bring financial flowers (okay, dorky, we know).

Some of the advantages of starting a business now are:

• Inexpensive real estate
• Good employees looking for work
• Less competitive market
• More media coverage for new businesses

“It’s always a matter of perspective,” Justin told BusinessWeek. “There’s always a way to prosper during a downturn … We’re Americans. Entrepreneurship is in our DNA.”

Worried about the financing you’ll need for your business? Give us a call! We have several financing options available to help you get your start. Plus, we’re in Seattle – we never let a little rain ruin our fun!

Monday, Jim Cramer, CNBC’s host of “Mad Money” shocked investors by stating he saw the potential for the market to pull back another 20%. In an interview with Ann Curry, Cramer expressed concern about being overly invested in the stock market. “Whatever money you may need for the next five years, please take it out of the stock market right now, this week. I do not believe that you should risk those assets in the stock market right now.” He also warned that Europe is right behinds us.

Last Friday, the government’s $700 billion bailout plan passed which increased the insured rate on bank deposits from $100,000 to $250,000. Cramer was quoted as saying “Your money is safe” but he also warned that stock market investors may not be so lucky.

To be fair, he also suggested that if you have the assets and stomach to ride out the ups and downs for the next 5-years, you may not want to pull out.

All this came from a guy who is best known for helping people to invest in stocks. There is no doubt it’s a scary time. Is Jim Cramer right? The truth be told – Jim knows as little as anyone else what the future holds.

Over the past few weeks Guidant has been flooded with calls from clients and prospective clients asking what we think about this crisis, trying to move money quickly and asking for help. I will refrain from giving any advice but I will share some thoughts that may resonate with you.

For over five years we have talked about the benefits one can enjoy through a self-directed IRA – most importantly, true diversification. Markets are cyclical – they all are. It’s how you perform and react under pressure that defines the level of success you will realize. Right now the stock market is in crisis. The real estate market has its challenges. There is concern about the dollar. Fears of inflation. Rumors of more wars. No doubt – it’s a scary time.

Is it possible that there is unique opportunity as well?

Right now credit is tight. Small businesses, homeowners and investors need access to cash. Credit runs this economy. Could self-directed IRA holders originate loans from their retirement plans to these people for income and profit? Absolutely. Are their people in distressed situations that need to avoid a foreclosure or possible bankruptcy? Yes. Are tax defaults creating opportunity for tax deed or tax lien investments? No doubt. Are there foreign and domestic real estate opportunities that are not affected by the US economic conditions? And will rents go higher when it’s more difficult to apply for a loan? They always do.

I’m not advocating that you need to rush in and buy. I’m always concerned that people make healthy investments. If you believe there is opportunity in the stock market – great. If you feel that real estate has unique opportunities and you prefer secured assets over paper – perfect. It really is up to you. The reality is that unlike an account with a traditional financial services company, a self-directed IRA will provide you the choice as to when, where and how that is invested.

My heart goes out to those that feel panicked today. It is challenging time but I believe in this Country and resiliency. I believe in YOU.

The Wall Street Journal published an article today about the growing trend in self-directed investments for retirement accounts (see When Stocks Tank, Some Investors Stampede to Alpacas and Turn to Drink). The reporter, Jennifer Levitz, explores some of the unique investments people have directed their IRAs into - believing that these investments, although outside the box, will provide more stable and lucrative returns.

Tim Boykin, a Guidant client since July, was highlighted in the article for his self-directed investment into a construction company in Lima, Peru, which is currently erecting condominiums. Tim's sentiment toward alternative investments is very similar to that of the prospects we have been getting calls from over the last few days.

"I can see pictures of the land. I can see steel. I can see people working," he told Ms. Levitz. "When I put my money in a fund, I see a big list of things that don't sound good."

As the article points out, many investors are now wary of the stock market. The reality is sinking in that you don't really know what you're investing in when you buy a bond or invest in a fund. Conversely, real estate, an alpaca farm or even a parking space are investments that epitomise the old adage "what you see is what you get."

It is true, as the article mentions, that panic can lead to unwise decisions. And unfortunately some questionable investments are being hawked at wary IRA holders. Everyone should always think very carefully about what they invest their money into but, as the article points out, self-directed IRAs open up a whole new world of (sometimes more stable) options.

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.

401(k) small business financing made the Small Business section of the New York Times today (see Betting Your Retirement on Your Startup). Although we do think the title is a bit misleading (you are always betting something on your startup - whether it is your life savings, your home or your familial connections), we do see this article as a great resource for anyone looking to start or purchase a business.

And prominantly featured in this story is Guidant's own client George Richards, owner of Darwin Liquors with his wife Marlies. George has been a Guidant client since 2006 and is still happy he decided to use retirement money to finance his own business. As he told the New York Times, "I would bet on myself and my abilities any day,” he said. “I don’t know who I’d rather bet on than me.”

We know that right now is perhaps the most unstable time in the history of the American economy. With that comes uncertainty about all things financial. The New York Times recongnized that and sought us out for examples of people who used our 401(k) small business financing solutions to invest in themselves (and not the CRAZY stock market) and to side-step the volitile lending environment (at least partly).

Even though you may be seriously reconsidering your entrepreneurial goals, know that Guidant has options for you that could not only provide you with the capital you need for your business, but that could provide you with a way to invest in something you have control over - your own business.