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401(k) Business Investing

October 15, 2014 by @guidant

Many Americans dream of owning a business but avoid taking an entrepreneurial leap because they lack the finances to do so. Typical business “start ups” or purchases require a fair amount of liquid cash or a high net worth. Some franchisors will not even deal with applicants who have less than $100,000 in cash.

In an effort to help potential entrepreneurs meet these challenges, Guidant Financial created the iFinance plan, for small business investment. iFinance allows individuals to access funds from their IRA and/or 401(k) to invest in a franchise or other business without incurring distribution taxes or penalties.

The Guidant 401k retirement account structure truly is a remarkable tool for growing one’s business along with one’s retirement account. By using iFinance, individuals can purchase a business or franchise as a retirement-account investment. Instead of investing in a publicly held corporation, account holders invest in themselves. This business-funding strategy has opened the entrepreneurial door for many thousands who otherwise could not realize their ownership dreams.

Andy Alberts, owner of the Touchdowns Sports Bar and Grill, used iFinance to make his dream of business ownership come true. “I had worked for many years building up my 401(k),” he says. “I expected to break into that account and pay the massive tax penalties if necessary to buy this place.” But when he learned he could purchase the bar and grill using his retirement money before retirement, without having to pay taxes or penalties, he chose to use iFinance instead. He’s thrilled with the results. “I warn everybody that whatever you do, don’t take an early distribution on your retirement account. I tell them to use a self-directed IRA plan like iFinance. If you work with Guidant, you’ll save a bundle, your money never leaves your authority, and you become the one who defines your future.”

Put together your list of five golden rules of what any business you buy MUST have in place. Think about this and be specific. Don’t say: “I have to enjoy what I do”… sure that’s important, very important in fact. However, if you’re in a business that you initially think you’re going to love, but you find yourself losing money, I can assure you that you’ll learn to hate everyday very quickly!

Through the 401(k) business investment plan, Guidant has already helped many investors move from employee to employer. Our clients have invested in businesses ranging from structured franchises, such as Mr. Handyman and Subway, to brand new start-up companies like home-decorating shops and previously existing businesses like air charter services. The sky is truly the limit!

If you have IRA or 401(k) funds and would like to invest in your own business, consider Guidant’s iFinance as your ticket to entrepreneurial success.