Real Estate IRA | Self Directed IRA Blog

Recent Racket on REITs

2010-02-03T10:00:00.000-08:00

Word on the street (Wall Street, that is) is that REITs may finally be seeing some increase in value. This is good news because anything real-estate related seeing some kind of increase could be a sign that the US economy is stabilizing.

In a recent article by the Wall Street Journal (see REITs: Better but Not All-Clear), REITs were highlighted as an investment opportunity on the rise. In fact, the Dow Jones All REIT index, has doubled since last spring. That being said, though, the very same index lost 75% of its value between February 2007 and March 2009.

The interesting thing about this article, to us, is how much talk there is about the premiums put on REITs for speculation. The reason many people come to Guidant to explore a self-directed IRA for real estate investing is because the speculation is largely taken out of the equation.

Don’t get us wrong, there will always be some sort of speculation and calculation involved in any kind of investment, but the fact that this article has to point out that “REITs now trade at a roughly 20% premium to the net value of their real estate,” makes us want to roll our eyes. Several times.

What does that even mean? 20% premium for what?

According to the article, it’s a premium for optimism; Optimism that the commercial market is on an upturn.

Would you like to pay a premium for optimism?

Maybe, but we’ll bet that you’d rather pay a premium for real returns. It’s exciting that there’s a positive rumble around REITs – because that means that there’s a positive rumble around real estate. But, for our self-directed IRA clients who invest in real property, this is even more exciting. For them, this rumble really can become a reality.

It’s Coming!

2009-12-17T10:00:00.000-08:00

The end of the year is almost here! What does that mean? It means that the time you have left to make your 2009 contributions is limited!
According to the IRS website (www.irs.gov), the 2009 contribution limits for traditional IRAs and Roth IRAs are:

- $5,000 (depending on your modified adjusted gross income)
Or
- $6,000 if you are age 50 or older before 2010 (depending on your modified adjusted gross income)

To find out more about 2009 contribution limits, see Publication 590.
Although you may not have to make your 2009 contributions before December 31, 2009, if you are on an employer sponsored plan, such as a 401(k) or 403(b), you may be required to make your final 2009 contributions as part of your next pay check (the last of the year).
For many people who are paid bi-monthly, this means that they have already passed the deadline for ’09 contributions. That being said, this is always a great time to sync up with your benefits department and make sure you are getting the full max out of any employer contributions or matching for the year.

Remember, the more you save today – the more you will have to spend later! Furthermore, for those of you with employer-sponsored plans, while we cannot typically roll those funds into a self-directed IRA until you terminate employment, or reach the age of 59 ½, the more you put in today, the more you can invest in non-traditional assets later!
Happy contributing!

The Benefits of a Real Estate IRA

2009-12-15T10:00:00.000-08:00

There are thousands of real estate opportunities to profit from for those that are prepared to reap the rewards. Property owners are feeling the affects of the economic downturn and are selling their holdings in an attempt to keep the proverbial “shirt on their back.” A real estate IRA is an ideal investment vehicle for taking advantage of these opportunities. It allows you to diversify your holdings from traditional investments such as stocks, bonds, and mutual funds while enjoying tax-free growth.

If you’re like most investors, you saw a decrease in your retirement holdings over the past couple of years. Well, now is the time to recoup those losses with a real estate IRA and get those holdings back to their lofty levels. Contact a Guidant representative today to find out how you can profit from a real estate IRA or self-directed IRA.
What Type of Real Estate Can I Purchase?
• Improved or unimproved land
• Detached homes
• Semi-detached homes
• Co-ops
• Condos
• Apartment buildings
• Office buildings
How Real Estate IRA’s and Self-Directed IRA’s Work
When you purchase a property in your Self-Directed or Real Estate IRA, the income and appreciation accrues tax-deferred or tax-free. To retain this tax-free wealth-building status:
• The entire real estate transaction must be processed through the self-directed IRA.
• You cannot purchase property that you or your family members already own with a real estate IRA. It will be construed as a disbursement and early-withdrawal tax and penalties will apply.
• You or immediate family members may not live in or lease a property while it’s in your plan.
A Guidant representative will cover all prohibited transactions within a real estate IRA to ensure you aware of potential conflicts.
A self-directed IRA allows you to invest in a wide array of investment vehicles including:
• Real estate
• Private businesses
• Franchises
• Tax liens

Guidant will set you up with a Self-Directed IRA LLC that will allow you to act as your own custodian for the plan. You’ll be able to take advantage of time-sensitive investments by simply writing a check from the IRA fund. You can save thousands of dollars in transaction and asset-based fees while building your retirement wealth tax-free.
A Self-Directed Real Estate IRA will allow you to:
• Instantly purchase foreclosed properties and tax liens without “jumping through hoops” to get the deal done.
• Purchase commercial, residential, and rental properties.

Guidant makes real estate investing easier. You act as your own real estate IRA custodian so that you can take swift action when a profitable opportunity arises. The economists are telling us that the economy is in recovery which means that whoever is positioned to take advantage of opportunities will be the winners. Contact Guidant today to discuss the benefits of a Self-Directed IRA or Real Estate IRA.

How to Use a Self-Directed IRA for Small Business Investing

2009-12-11T10:00:00.000-08:00

When many investors think of a self-directed IRA, they believe that it only gives them the opportunity to invest in stocks, bonds, and mutual funds of their own choosing. While it is true that you can invest in these vehicles, a self-directed IRA offers more options. Other investment options include real estate IRA’s, personal business investment, franchise opportunities, partnerships, private equity, and tax liens.

Most banks and brokerage firms neglect to tell you about these other investments due to their vested interest in selling you stocks and bonds. For example, if you decide to invest in your own small business, these firms do not earn any revenue. Guidant believes that you should be aware of all options for investing your retirement funds. After all, it’s your money. Contact a Guidant representative today and find out how a self-directed IRA can assist you with small business financing.
Use Retirement Funds for Small Business Investing
Whether you need start-up funds for a small business, franchise financing, or just want to diversify your retirement holdings, a self-directed IRA can provide you with the flexibility to make your own choices.
The job market has “tanked” and even if you land a position, the wages are not what they once were. Many individuals have taken the opportunity to strike out on their own and follow their dreams of owning their own business. They’ve had enough of the broken promises of job security and are taking control of their destiny on their own terms. And they are financing their small business by utilizing self-directed IRA’s, 401k, and other retirement funds without early withdrawal penalties or taxes.

The Guidant 401(k) Plan for Small Business Investing

The Guidant 401(k) Plan for small business financing allows you to invest your retirement funds in your own enterprise. A brief overview of the process is as follows:
• Guidant will assist you in setting up a C-Corp business organization for your new business or franchise.
• We will guide you through the process of setting up a 401(k) for your new business.
• Your retirement funds will be rolled over into the new Guidant 401(k) plan.
• The new 401(k) plan then purchases shares of the new corporation…namely, your new business.
• This small business funding option provides working capital from your retirement plan without taxes, penalties, or debt.

The Guidant 401(k) Plan for small business financing allows you to start your own business and, at the same time, control your retirement fund growth. If you’ve always wanted to start your own business but financing stopped you, the Guidant 401(k) Plan offers an ideal solution. Contact Guidant today for a free consultation on how to realize your dreams of business ownership.

Invest IRA in net leased real estate

2009-08-17T16:37:00.000-07:00

When: Tuesday, August 25, 2009 9:00 AM - 10:00 AM PDT (PST)

With underperforming U.S. stocks and potential in the real estate market, now may be the time to invest in the potential of Net Leased Real Estate.

Join Forrest Moore, Self Directed IRA expert with Guidant Financial Group along with Ned Coyle, VP of Investment Properties and Brokerage Services for CB Richard Ellis, a licensed Financial Advisor in Toledo OH. Learn about:

• How to invest in Single Tenant Net Leased Real Estate
• The Costs of Occupancy
• Benefits of Investing in Single Tenant Properties
• Why Now is a Good Time to Invest in These Properties
• How to invest IRA/401k funds into Net Leased Real Estate

Guidant does not recommend any investments, but we do help individuals set up self-directed IRAs for investing in real estate. If you have ever considered purchasing net leased real estate, you should not miss this event. This webinar will begin promptly at 9a (PST) on Tuesday August 25th.

Register Now!

Should Investors Avoid Real Estate IRAs?

2009-06-19T14:47:00.002-07:00

MarketWatch released an article on May 21, 2009 that suggested most investors should avoid self-directed IRAs. In “Why Most Investors Should Avoid Self-directed IRAs,“ Robert Powell details three main reasons:

It is unclear who is regulating this industry;
The IRS guidelines are complex; and
There are very few “experts.”

While we appreciate his perspective, we do not feel it is as simple as to suggest this type of investing is only for the wealthy. We believe that individuals have the ability to make good wealth-building decisions when provided correct information.

The rules for investing in alternatives investments using retirement funds have been outlined within the Internal Revenue Code - IRC 4975. He is right – they are complex and subject to facts and circumstances. That is why you need to work with a company (not just an individual) that really understands how these rules apply to the assets you are interested in investing in. There is no space between us on this one.

But then he is also correct that there are very few experts in the field. Unfortunately, there are a lot of self-proclaimed self-directed IRA experts using social media and paid advertising to assert their position as a leader, but don’t be mislead. Do your due-diligence and involve your tax professional and investment advisor to find a firm you feel is most qualified to help you properly facilitate self-directed IRA transactions. Please consider that just because you saw them on Twitter, read a blog post about them or they have written a book does not make them an expert. Here are a couple of things to consider:

How long have they been around?
How many clients do they have? (If they have 2 – run!)
How big is their company? (Size does not necessarily mean better…but it’s indication of their potential experience and strength)
What value do they provide? (Do not shop purely based on price! If you accidentally run afoul of the rules for self-directed IRA investing, your entire IRA could be distributed. If you have a $100,000 self-directed IRA – you could be forced to take that as income, plus penalties, and pay 40-50% to the government. Saving a few hundred bucks to work with a discount provider is not a good strategy. )
Are they registered with the Better Business Bureau and what does their history provide?
Have they been honored, recognized or endorsed by other reputable organizations?

We have always asserted that self-directed IRAs allow people to invest in what they know and understand. It would be difficult to argue that the stock market was safer to invest in than real estate (if you know what you're doing)…especially after this year. Even spirited money man Jim Cramer recently said that real estate is a better investment than stocks today.

Self-directed IRAs allow you to decide that investments you feel are most prudent for your retirement plan. If you feel the stock market is better – buy stocks! If you like real estate…invest in that. The same goes for tax liens, private mortgages and gold. Self-directed IRAs let you invest in your core competencies and there are safe and effective ways to do it.

If you want to learn more about self-directed IRAs or real estate IRAs – contact us!

An Idiot-Proof IRA

2009-06-19T14:47:00.001-07:00

We found an article on The Motley Fool today about how to not be an idiot with your IRA. How could that not catch your eye on Google News? No one wants to be an idiot.

We thought it was worth sharing some other ways to grow your IRA accounts. Here are a few of the Fool’s tips:

1. Don't overpay. Watch those management fees - especially in mutual funds. They can add up and over time cost you a small fortune.

2. Avoid overdosing on accounts. Pay attention to where your IRA money is and try to minimize the number of accounts that sit out there collecting fees.

3. Keep your hand out of the cookie jar. Avoid accessing your retirement funds early and getting hammered with early distribution penalties.

4. Don't “dis” dividends. Invest in companies that pay dividends. If you can live without them, reinvest the dividend money back into your account and watch your shares grow, over time of course.

I think a better choice for #5 might have been, “A fool’s advice could pay dividends”. I suppose they have only used the fool cliché only a few hundred times before.

What did they miss? How about DIVERSIFICATION! Guidant Financial Group provides and individual a chance to buy all sorts of investments inside their IRA. In addition to stocks, bonds and mutual funds, our clients can buy real estate, tax liens, private stock and mortgages and even small business. The opportunity is near limitless!

If you are not satisfied with how your retirement plan has performed – call us. Let us help you discover a new world of opportunity.

Gold Investing with an IRA?

2009-06-19T14:46:00.000-07:00

As is the case with most investments these days, Gold is feeling the pressure. Generally considered a solid investment, especially in turbulent times, Gold has experienced some ups, and downs, and ups again recently….phew!

In an article from March 10, Bloomberg cites deflationary pressures as the reason for a two day drop in prices to $912.97 an ounce, or a 2.9% drop during the period. This was immediately following a 3.6% increase just a few days prior. Amidst fluctuation, gold has risen 25% in the last 4 months.

What a difference a few days makes!
In an article from today's Bloomberg, gold has rebounded and experts say "BUY"! Another expert calls gold "As good as it gets". Gold is up to $952 per ounce today. From the Bloomberg article, Peter McGuire, managing director at Commodity Warrants Australia Ltd. says, “[Gold has] got the potential to test $980, $990 this week,” and that “The major driver is where the U.S. dollar trades this week and we see further downside on that one.” Read the entire article HERE.

How other metals are trading:
Among other precious metals for immediate delivery, silver added 0.5 percent to $13.82 an ounce, platinum lost 1.1 percent to $1,102.50 an ounce, and palladium slid 0.4 percent to $206.25 an ounce as of 1:27 p.m. in Singapore.

What does this have to do with Guidant?
The primary investments our clients make are in real estate, tax liens, franchises, small businesses and private loans. Recently we have seen a spike in the interest being shown in precious metals – namely Gold and Silver. These and other precious metals headline the limitless other alternative investments that our clients use because they are an interesting investment in any market. With the Guidant self-directed IRA, you are able to purchase Gold and other precious metals with your retirement funds as a long-term investment without paying taxes or penalties. To learn more about a Gold IRA or to find out if you can invest in something non-traditional which you do not see mentioned on our site, contact a Guidant today!

10 investment tips for you!

2009-06-19T14:45:00.000-07:00

When surfing the web this week, we ran across a list from the site where many men go for all sort of information - AskMen.com. In part 3 of a series of investing articles, AskMen.com enlightens us with their top 10 tips on investing. Some are similar to the reason Guidant is in business, starting with diversification. There is nothing better than diversifying and putting some your IRA/401k money into something that you can count on, perhaps slightly more than the NASDAQ. Their list is after our own hearts:

1. Diversify
2. Do Your Homework
3. Set Goals & Limits
4. Don't Gamble With Money You Can't Afford To Lose
5. Don't Be Greedy
6. Invest For The Long-Term
7. Avoid Acting On Impulse
8. Go For Value
9. Tax Planning Is Important
10. Get Professional Help

Read entire article HERE.

Now that you are ready to start diversifying your investments, check out some self directed IRA investment options on our website. You can use a self-directed IRA to purchase real estate, loan, tax liens and more. Also, if you want to buy a business, you can invest your 401(k) into a small business or franchise with the Guidant 401(k) plan. The options are truly limitless.

Foreclosure Auctions- perfect for a real estate IRA

2009-06-19T14:44:00.002-07:00

Nuwire Investor published a "how to" article by Bryan Davis call, How To Buy Real Estate at Foreclosure Auctions. Given the rise in foreclosures, we thought we'd point it out as a potential area of opportunity.

Many individuals come to Guidant because our self-directed IRA LLC allows account holders to gain checkbook control over their retirement funds...making foreclosures a possibility. Last we knew, IOU's weren't acceptable forms of payment at a foreclosure auction.

Real Estate IRA investing

2009-06-19T14:44:00.001-07:00

Self-directed IRA investors often call Guidant in hopes of gaining insight into where our clients are investing their retirement dollars. While we cannot discuss the particulars of client transactions or recommend any specific investments, we can share we have seen a rising interest (again) in domestic real estate – primarily rental properties.

Recently, we have heard many that see opportunity because of tighter credit markets. It is harder to get qualified for loans than just six months ago and because there are fewer buyers, more inventory sitting on the market. More inventory means that sellers are more likely to negotiate – making this a buyers (or investors!) market. Today, many investors feel they can buy real estate at lower prices and charge a premium to rent the same place.

You may consider diversifying some of your retirement assets in to different markets and different assets. The beauty of self-directed IRAs is that you get to make that choice.

The Best Real Estate Markets For 2009

2009-06-19T14:42:00.000-07:00

Forbes magazine recently published its top 10 Real Estate Markets. Investors may want to take notice of some of these markets—near or far—as many of them provide opportunities for substantial returns. The top 10 are:

Washington D.C.
London
New York City
Tokyo
Shanghai
San Francisco
Los Angeles
Paris
Houston
Singapore

Washington D.C. ranks number one because burgeoning government programs are expected to draw large numbers of workers to the city and surrounding areas, creating higher demand for all types of residential real estate and a boom in service industries.

New York's density was widely believed to guard the metropolis from major downturns in residential property sales, but some neighborhoods have seen a three-quarter drop in sales activity, according to the article. This drop could bring bargains in the near future as the local market recovers from the financial crisis that has stricken Wall Street.

Like most California cities, San Francisco and Los Angeles have seen significant drops in housing prices. The former is also on the verge of a major commercial property glut, which could present bargains for long-term investors, while L.A. is seeing more sales activity in recent months, hinting that the market may be at least nearing its bottom.

Lastly among American cities, Houston is one of only a handful that saw prices rise overall from 2006 to 2009, and this growth is expected to continue because of the city's low business costs, which could attract corporate relocations and thus new residents.

As fears continue to rise concerning the fate of the stock market, more and more IRA holders are considering self-directed IRAs over traditional investments. These real estate markets may provide the right opportunities for investors to weather recent downturns and see returns much larger than they might have expected even in the boom years.

Read the article, which focuses on the D.C. property market, on the Forbes website here.

Mortgage Rates Still Low: Good News For Everyone?

2009-06-19T14:38:00.000-07:00

Fixed-rates for mortgages are the lowest that they have been in several decades, according to an article on MSNBC.com. No one can be certain of how long these low rates will last, how much further they might fall and how much they will rise after reaching the bottom. It's also not a given that aspiring homeowners will actually be able to get financing, especially if they have less-than-perfect credit scores.

One thing is slightly clearer: These rates are more incentive for homebuyers to take advantage of the low prices already being offered in this buyers' market. This could raise demand significantly, and as demand rises and inventory diminishes, home values will also be on the rise.

For property investors, these low rates are good news for the longterm. It will still be a while before most markets—especially truly glutted markets—see prices rebound very much, and financing is well out of reach for anyone who has experienced foreclosure. Many people still need to rent at present, which guarantees that many investment properties will generate cashflow. Individuals who are considering investing in property can find great deals on homes and may see prices appreciating sooner than later if these lower mortgage rates do compel more people to gradually start buying.

Even with these low-rates, investors who have sufficient retirement funds to buy property may want to consider using a self-directed IRA as a debt-free means of financing. After all, no interest is still better than low-interest if the property is to be an investment. There are housing markets that seem to already be at bottom, and today's low mortgage rates may give these markets the final push toward appreciating home values in the coming year.

Debt-Free Home Equity Strategy Lets Homeowners Tap Equity Without Interest

2008-08-19T11:05:00.000-07:00

Most American lenders are making it harder than ever to secure credit the “old-fashioned” way. So, some progressive financial experts are putting their energies into inventing new ways for Americans to access needed capital.

One particularly innovative new way to secure capital is Debt-Free Home Equity (TM). (See the full press release) This plan lets homeowners liquidate some of the built-up equity in their home without debt, interest or monthly payments. It is NOT a reverse mortgage, a second mortgage or a loan of any sort.

Once qualified, the homeowner can receive as much as $300,000 in an upfront cash payment based on their home’s value. In exchange, the homeowner agrees to share with the program sponsors an agreed-upon percentage of the home’s increase (or decrease) in value at the time of sale or end of the agreement.

According to David Nilssen, CEO of Guidant Financial Group, a financial services company specializing in alternative no-debt and low-debt financing, “This to a great way to access one’s own capital to pay off debts, invest in real estate while prices are low, contribute to an IRA, or buy a business. In fact, you can combine this equity money with funds from an IRA to finance a business or franchise with no debt whatsoever.”

Nilssen points out that this strategy is best for those who intend to remain in their home for at least five years. Additionally, there are some specific qualifications that homeowners need to meet before entering into the agreement.

Homeowners who wish to learn more about the Debt-Free Home Equity plan or be prequalified for it can contact Guidant’s financial experts at 888.755.5359. More information can also be found at http://www.ampliore.com/.

Stats Link 401(k) Financing to Business Success

2008-08-19T10:21:00.000-07:00

The survival rate of those launching new businesses with their retirement funds is significantly higher than those using traditional debt-based financing. This, at least, is the indication of a recent survey by Guidant Financial Company of Bellevue, Wash. Guidant, which specializes in helping entrepreneurs tap their retirement funds to buy a business debt- and penalty-free, found that their clients are experiencing a 95% survival rate.

According to the SBA, 75% of small businesses survive at least two years, and about 44% survive at least four years. Although Guidant’s results were based on the responses of clients who have been in business anywhere from a few months to five years, the success rate is nevertheless significant when compared against national averages.

According to Guidant’s CEO David Nilssen, any kind of debt-service can seriously handicap a new business. “The average SBA loan for $100,000 can demand up to $6,000 in interest in the first year of business alone,” says Nilssen. “When a new business owner can, instead, use those dollars to invest in the growth of their enterprise, their potential for success increases significantly.”

Nilssen also reports that, according to client testimonials, the ability to direct their retirement dollars into an asset they can personally control is one of the factors that drives them to succeed.

To read the full release, click here.

Market Volatility Has Investors Wary of Any Corporate Investment

2008-07-29T08:57:00.000-07:00

In 2005, private stock investments accounted for almost 7 percent of all self-directed IRA investments, according to Guidant Financial Group, a leading provider of self-directed IRA and real estate IRA services.

In a recent 2008 survey, however, Guidant found that only 1.2 percent of its self-directed IRA clients were actively investing in private stock, showing an 82.6 percent decrease in activity in three years.

“The volatility in the economy and the securities market has made investors wary of corporate investments, whether public or private,” explains Guidant’s CEO, David Nilssen. “Once investors grow more comfortable with nontraditional investments, like real estate and tax liens, they start to move away from corporate investments toward other assets they consider potentially more secure and lucrative.”

With the decrease in private stock investment comes several significant investment increases in other assets. In the same three-year time period, self-directed IRA investors increased their investments in tax liens by 341.1 percent, in private loans and notes by 131.1 percent, and in real estate by 24 percent.

“These increases show us that self-directed investors are diversifying their investments,” explains Nilssen. “If the volatility in the stock market has taught us anything, it has taught us to avoid putting all our eggs in one basket. Even those already diversifying beyond the market into alternative investments are no longer buying just one property or solely investing in tax liens.”

Nearly Half of Entrepreneurs Buying Businesses Use Brokers/Consultants

2008-07-15T11:25:00.000-07:00

Nearly Half of Entrepreneurs Buying Businesses Use Brokers/Consultants

While entrepreneurs may have the reputation as independent trailblazers utterly confident in their self-knowledge and spot-on instincts, statistics indicate that not all entrepreneurs rely on their wisdom alone when it comes to finding the right business to buy.

According to a survey by Guidant Financial Group, 46 percent of prospective business owners use business brokers and franchise consultants in the search for their new enterprise. The survey of Guidant clients who were using penalty-free retirement funds to finance their business also reveals that 19.7 percent turn to the Internet and 9.7 percent use franchisors/franchising groups to find a business (read the full release here).

David Nilssen, CEO of the Bellevue, Wash., financial services company, feels that these stats underscore that successful people “recognize the value of input from others, especially when making a decision as important as buying a small business or franchise.”

Nilssen points out that brokers and consultants are experts who can provide an insider’s perspective as well as objective feedback to potential buyers who sometimes get so caught up in the dream they need a nudge towards reality. “Not only do consultants provide multiple listings and offer expert advice on the current market, fair pricing, competition, pitfalls and benefits,” he says. “But many also administer in-depth personality-and-interests questionnaires to help prospective buyers focus on the opportunities that match their temperament, business needs and financial constraints.”

When it comes right down to it, many potential business owners prefer the one-on-one relationship of working with a consultant. While they may use the Internet to help narrow their search, it’s the personalized (and human) attention of a broker or consultant that ultimately has the most appeal. “Websites don’t get to know your unique skills and personality and they don’t listen to your concerns and desires,” says Nilssen. “Consultants do.”

Self-directed IRA lending increases by 131.1%

2008-06-26T13:07:00.000-07:00

Data recently released by Guidant Financial Group indicates that private loan investments inside self-directed IRAs has increased by 131.1% since 2005. By comparing a 2005 survey of Guidant self-directed IRA and real estate IRA clients against a similar 2007 survey, the financial services company was able to document what it had already suspected: a dramatic spike in private lending apparently in response to today’s tight credit market.

It’s not surprising that individuals and businesses are turning increasingly to private lenders who can often beat the interest rates and qualifying standards of skittish lending institutions.

The fact that Guidant’s clients, who can self-direct IRA funds into both traditional and non-traditional investments, are choosing notes and/or personal loans over many stock market investments is further evidence that, during shaky economic times, investors place their faith (and funds) in potentially more secure assets. Most of these loans (i.e., second mortgages, hard-money loans, etc.) are secured by real property. And, even if that property isn’t worth quite what is used to be, it can still provide a level of security superior to stock market investments . . . which is the reason many inventors turned to self-directed IRAs in the first place.

A Third of New Business Owners Using IRA Funding Are Age 45-50

2008-06-10T15:26:00.000-07:00

Survey data released this week indicates 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 Financial Group’s 401(k) small business financing vehicle to launch their enterprise as an investment inside their retirement account. Guidant is a Seattle-based provider of self-directed IRAs and alternative business financing vehicles utilizing retirement funds.

There could be many reasons for this statistical result. The most obvious is that the retirement-fund equity needed for financing a private business usually isn’t available until people have worked for several years. The skills required over those years may also add to the confidence necessary for venturing out on one’s own.

Considering that a 2006 study by Merrill Lynch showed that 71 percent of Baby Boomers intend to keep working after retirement age, there are some who want to get a jumpstart on their future self-employment by investing in a business before they leave their current “regular” jobs.

Others included in this age group are those who, due to current job insecurity or unexpected lay-offs, have taken the leap into self-employment earlier than they originally intended.

Most People Buying Businesses Have Management or Executive Backgrounds

2008-05-15T12:56:00.000-07:00

In a survey of clients using Guidant Financial Group’s 401(k) small business financing solution, 60 percent of new business owners funding their purchase with IRA/401(k) monies come from management or executive backgrounds. The same Guidant survey also indicated that the most popular businesses being launched are within the business services and consulting industry (13%). This was followed by retail (12.7%) and home services (11.7%).

These statistics could indicate that the same drive and ambition that enables employees to reach management-level positions are the same characteristics necessary for successfully launching a small business. It may also be that these same personality traits contribute to a willingness to embrace alternative financing means – such as using IRA or 401(k) funds to purchase a business.

Read the full Guidant news release.

Retirement Funds Help Entrepreneur Invest in a Greener Future

2008-02-25T08:14:00.000-08:00

Bellevue, WA (PRWEB) February 25, 2008 -- In late 2007, Miki DeZorzi, an Orangevale, Calif., stay-at-home mom of two, invested her 401(k) funds into a better future for her family and, in so doing, hopes to do her part in helping the planet's future as well.

A former sales manager for a telecom company, DeZorzi used more than $50K from her previous employer's retirement plan to purchase Electric Car Living, a golf cart and Neighborhood Electric Vehicle (NEV) business in Lincoln, Calif. "This really is the wave of the future," she says of the more energy efficient alternatives to conventional four-wheeled light-duty vehicles.

Also known as Low Speed Vehicles (LSV), these lighter-weight, eco-friendly modes of transportation are being introduced into a growing number of communities, many of which are accommodating them by widening bicycle lanes. "Many counties and states are creating Low Speed Vehicle initiatives, encouraging people to get out of their cars, off the roads and use LSVs to get around," DeZorzi says. Currently 38 states have LSV laws, and many allow LSVs and NEVs on public roads with posted speed limits below 35 miles per hour.

To read more about Miki's new business and how she used retirement funds to finance her new business, click here.

A Note on Partnerships - By Scott Hurley, Guidant senior consultant

2008-02-18T09:47:00.000-08:00

Partnerships for real estate investors are common, but can you enter into a partnership with your IRA funds? The answer is YES; but, it must be with a partner who is not a “disqualified party” to your IRA. Whether your IRA is investing into a real estate investment group that is structured as a corporate entity, or as tenants in common with one other party, the key is to avoid disqualified parties.

So who is a disqualified party? The list includes…

1) Yourself and your spouse – You cannot co-invest IRA funds with your personal funds on any investment.

2) All family members in lineal ascent or decent from you and your spouse. This would include children, grandchildren, parents, grandparents and so on . . .

3) Anyone with a fiduciary conflict with you or your spouse. This would include people like attorneys, financial advisors, tax consultants, etc.

For more information on partnering on an investment with your IRA funds, contact Guidant today.

Guidant Financial Group Offers Free Small-Business Financing and Self-directed Investing Seminars Online

2008-02-05T08:23:00.000-08:00

Those considering using their IRA or 401(k) funds to invest outside the stock market or purchase a small business or franchise can learn more about these retirement-account options throughout the month of February via Guidant Financial Group’s free online webinars.

Guidant Financial Group’s senior team member, Doug Smith, will speak on the benefits of these unique retirement-account structures and the many investment opportunities they can provide. Open to the public, these webinars are designed for anyone interested in learning about alternative investments for their retirement funds. Smith will explain what those considering these options should know prior to moving forward. Each webinar is conducted live and will allow participants to ask questions online in real time.

Two webinars will be offered on business financing with retirement funds on the 14th and 26th. In these two presentations, participants will learn how to:
• Decrease, and potentially eliminate, the amount of debt needed to start a business
• Use an asset to contribute more money into their retirement plan
• Use retirement funds so as to effectively increase your business success
• Save thousands of dollars on interest payments and additional fees

Funding a Business With Your IRA or 401(k)
When: February 14, 12:00 noon – 1:00 p.m. (PST)
Registration Link: https://www1.gotomeeting.com/register/271438946

Buying a Business Without Debt!
When: February 26, 1:00 p.m. – 2:00 p.m. (PST)
Registration Link: https://www1.gotomeeting.com/register/421085700

Two additional webinars, focusing on self-directed investing, will be offered on the 5th and the 20th and will teach participants:
• The biggest mistakes self-directed IRA investors make
• How the credit crisis is creating additional opportunities for self-directed investors
• Ways to eliminate transactional, holding and asset-based fees by a custodian
• What opportunities today’s self-directed investors are capitalizing on

Self-Directed IRAs: Making Money in Today’s Market
When: February 5, 3:00 p.m. – 4:00 p.m. (PST)
Registration Link: https://www1.gotomeeting.com/register/740577505

The IRA LLC: The Ultimate Wealth-Building Tool
When: February 20, 2:00 p.m. – 3:00 p.m. (PST)
Registration Link: https://www1.gotomeeting.com/register/966753051

All presentations are free of charge. To register for any of the webinars, visit Guidant Financial Group, or call 888.472.4455.

Top-5 Investments Made by Self-Directed Investors

2008-02-04T08:19:00.000-08:00

Bellevue, Wash. (PRWEB) February 4, 2008 -- Guidant Financial Group, a leading provider of self-directed IRA and real estate IRA services, announced today the top-five investments made by self-directed IRA holders in 2007. The list was derived by analyzing investments made by more than 600 investors with checkbook control of their IRAs in 2007. Self-directed IRAs are typically used for investments outside the stock market, such as real estate, but they can also be used to purchase traditional securities.

1. Real Estate
Though this grouping encompasses a lot of different types of real estate investments, it definitely stood out as the number one choice for self-directed investors in 2007. Within this category, the most popular real estate investment was residential rental properties. As home values across the nation stalled or dropped, investors moved their funds from appreciative properties to cash-flow investments. A close second to residential rentals were commercial rentals, followed by raw land, appreciative properties and foreign real estate.

To read more about the top-5 investments for self-directed IRA holders, click here.

Taking a Property as a Distribution at Retirement - By Guidant Consultant Tracy Piippo

2008-01-30T10:20:00.000-08:00

When discussing being able to purchase real estate in an self-directed IRA, alsk known as a real estate IRA, one of the first questions I typically hear is “can I purchase a property that I eventually wish to retire to?” Ultimately the answer is yes; unfortunately, it isn’t as easy as kicking your renter out and moving in once retirement hits.

Once an investor reaches retirement age, he or she is still subject to all prohibited transactions as long as the IRA continues to have ownership of the property; therefore, the first step is to get the property out of the IRA. In order to do this, a value of the property must be determined. This means getting an appraisal of the property to determine its fair market value. Remember, it is likely the IRA has held this property for some time, and appreciation has likely occured. To determine fair market value, a third-party appraisal is the most generally accepted choice.

Once a value for the property has been determined, the investor now has the ability to take that property as a distribution. For example, the property is appraised at 250k. In order for the IRA holder to move into that property, they would need to take a 250k distribution from the retirement account and pay all applicable taxes and/or distribution penalties (if the investor is younger than 59.5 years old).

Because of the potential tax burdens, many people choose to invest in properties for investment purposes only. One alternative to taking this exact property as a full distribution is to take a partial distribution and use the funds to make a down payment on a property in a similar area. While it is not the same as purchasing your dream home with your retirement account, this option gives the investor a chance to negate any appreciation in the area, and avoid a massive tax hit on a full distribution.