Press Releases

Bellevue, Wash. (June 10, 2008) – Guidant Financial Group released survey data today indicating that nearly one-third of new business owners using IRA or 401(k) funds to finance their purchase are aged 45-50. The results were gleaned from a survey of business owners who used Guidant’s 401(k) small business financing vehicle.

“These statistics are not surprising when you consider that the retirement-fund equity necessary for financing nontraditional investments like a private business usually isn’t available until people have worked for several years,” says David Nilssen, CEO and cofounder of Guidant Financial Group, a provider of small-business financing solutions. “They have at least 15 years before they hit retirement age, but they’ve accumulated enough wealth and experience to launch their new business now.”

Nilssen points out that many of these new business owners are still employed by others, but they’re setting themselves up for the day when they can start a business of their own – most with intentions of working well past retirement age. “A 2006 study by Merrill Lynch has shown that 71 percent of Baby Boomers intend to keep working after retirement age,” says Nilssen, “and investing in yourself, your skills and a solid business model isn’t a bad way to do it.”

Also included in this age group are those who have been forced to go into business for themselves. “While they may have always dreamed of owning their own business, job insecurity or unexpected lay-offs have led many to take the leap earlier than they originally intended,” says Nilssen. He also suggests that going into business for oneself at age 45-50 still provides enough time to try something new and give the enterprise a chance for success before retirement.