Press Releases

Growing retirement funds increase opportunities for franchisors, business brokers and lenders.

Bellevue, Wash. (August 21, 2007) – United States retirement savings hit an all-time high in 2006, according to Washington-based Investment Company Institute (ICI), a trade organization for the U.S. fund industry. Reaching a record $16.4 trillion dollars, the nation’s retirement savings showed an 11 percent increase from last year and a 55 percent increase since 2002. Savings in retirement plans now account for nearly 40 percent of all U.S. household financial assets, the report states.

This is great news, especially for franchisors, franchise consultants and business brokers. Because people are contributing more money into their retirement accounts and seeing growth, there’s more money to be had for purchasing a business or franchise. Unfortunately, many account holders have no idea that they can use their funds in this way.

“The ability to fund a business with retirement money is a concept that is still relatively unknown to the general public,” says David Nilssen, President and CEO of Guidant Financial Group. “With the growing interest in self-employment – and with the assistance of informed business and franchise brokers -- this industry is beginning to really gain some traction.” With contributions to retirement accounts growing by leaps and bounds, the same IRA or 401(k) accounts that a decade ago would have purchased not much beyond an “Open For Business” sign are now comfortably fat with funds.

Couple these growing accounts with the trend among Baby Boomers to work after retirement, and the news looks even brighter for franchisors and business brokers. Since 1999, surveys conducted by the AARP have regularly shown that the greater part of Baby Boomers, as many as 80 percent in some surveys, wish to work during their retirement years. And many of that number -- especially those who have been laid off or have been treated shabbily by their employers -- are looking toward business ownership as the key to employment security. Those who are hoping for self-employment that brings in more than pocket change, are looking for ways to get a head-start on their enterprises before they hit retirement age.

Mix these factors together, and you’ve got the perfect recipe for exploding small business sales.

“We are seeing tremendous growth in the self-employment arena among those nearing retirement,” says Nilssen. “They’re setting themselves up in business now so they’ll be up and running by the time they retire from their ‘regular’ jobs. The great thing about our service is that we can help them do this without having to worry about a huge tax hit or penalties if they are under the age of 59 and a half.”

Guidant’s Audeo structure not only allows for the purchase of businesses with retirement funds, but it also allows for the use of loans or multiparty purchases. Many couples have found Audeo the perfect solution to their dreams of financial security during their golden years.