Interview with David Nilssen, CEO of Guidant Financial Group - Page 2

Q: Are there any restrictions on what kinds of businesses you can purchase?

There are very few restrictions on what kinds of businesses people can purchase or start with this kind of financing method.

The provisions of this method require that the business must NOT be considered the "investment of capital," meaning that the main business activity cannot be passive investment (i.e. stock investment, passive real estate investment and/or factoring).


Q: What happens if the franchise goes out of business?

The way this financing method is set up, the retirement account owns stock in the business or franchise. Should the new business fail, the shares are now worth nothing.

While this does mean that the entire investment is lost, there are no taxes or penalties associated with this loss - one can liken it to investing in Enron. The plus side is, however, that there is no additional money to pay back. Had the client invested the business using traditional methods, not only would the business have failed, the client would still be responsible for paying back the loan or else their personal assets and collateral would be at risk.

Q: It is great that you are helping people that may not have been able to receive any other financing. Do you have any good success stories for us?

The great thing about working with entrepreneurs is that you are witness to many heartwarming stories.

One gentleman, Tony Capobianco in Florida was able to use his corporate 401(k) to purchase an Arakadoodle franchise after being laid off. "I can honestly say that I never smiled in my 18 years in the corporate world like I smile every day now," he told us during a break from his first-ever pirate-themed art camp for children. "It’s absolutely hysterical!"

Another gentleman, Roger Varner in Ohio, used his retirement funds to start Hocking Hills Roasters, a specialty coffee, fudge and roasted nut business. Starting this business had been a dream of his since he worked with coffee harvesters in Central America during a humanitarian trip.

Before starting the business, Varner was worried that he would not be able to build the business in the image that he had hoped, until he found Guidant.

Using Guidant’s services "was fortunate for me," he told us.

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