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    9 Replies Latest reply on Mar 27, 2009 9:26 AM by JDSCENNA

    Experience with Guidant Financial

    dwrunner Newbie
      I need an additional $70-80K to purchase a muti-unit franchise for my first business. My FICO score is >750 but I am no longer employed so not eligible for a home equity line or loan.

      Guidant Financial offers a 4-step process where I would 1. form a c-corp; 2. sponsor a 401(k) plan; 3. rollover my existing 401(k) savings into the new plan; 4. use some/all of the 401(k) savings to purchase stock in the newly formed c-corp, which in turn can purchase the franchise.

      I got this information from their web site and have not yet discussed with anyone including my accountant.

      Assuming I move forward, what are reasonable fees I should expect to pay for this arrangement?
        • Re: Experience with Guidant Financial
          bmt2008 Adventurer

          Don't know Guidant Financial - seems like a lot. But, if your credit score is that high, I know a few companies that provide up to $100,000 unsecured on personal credit. Try www.businessmoneytoday.com
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          • Re: Experience with Guidant Financial
            dublincpa Scout

            Pension Plan Ownership of a Company

            This from a while back. From what I recall the startup is several thousand per year along with several thousand per year in ongoing maintenance and reporting costs for the plan.

             


            Good luck
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            • Re: Experience with Guidant Financial
              bigsaver Newbie
              I know this is a reply to a very old post, but I hope by responding that I will save someone from the mess I got into. Guidant Financial is in business solely to extract fees from the people that are foolish enough to get involved with them.

               

              First of all, they never advise you of the downside risks or potential negative outcomes of what you want to do. They only discuss the positives, so that they can sign you on as a client. You pay them up front to create your corporate documents. They send you a bunch of boiler plate stuff. Then you pay them a monthly (or annual) fee for "recordkeeping." However, any actual recordkeeping you want done involves more fees. When I asked what the monthly fee entitled me to, I was told that it entitled me to "unlimited time and conversation with them." I don't need conversation, I need records kept! When I realized what a terrible mistake I had made, I chose to dissolve the corporation and terminate my plan. Guess what? I get to pay more fees for NOT doing business with Guidant! Plus I have to pay my own attorney and CPA to do all the work they should have done for me. Don't get involved with this bunch. One attorney I spoke with told me they are on the IRS watch list and that all their clients would probably be audited. Now there's something to look forward to!
                • Re: Experience with Guidant Financial
                  JDSCENNA Newbie
                  I just finished my first year with them and started to questioning all the fees.
                  What exactly to they do for 800.00 a year? Take your money and send you emails.
                  All these fees are draining me dry in my small, less than profitable business.
                  What was involved in geting out of this mess?
                    • Re: Experience with Guidant Financial
                      bigsaver Newbie

                      What I did was to go back to the outside attorney that Guidant had placed me with to begin with. Even though she is one of their counselors, she was very fair with me, fees very reasonable, and even went out of her way to get me some documents that Guidant had wanted to charge me several hundred dollars for. Then you basically have to reverse the process that you did to set up the C-corp and the 401-K and get your money back into a personal IRA. I am in the process of doing that now. I should be out of it in a week or two. Good luck. Post another message here if I can help. But if I were you, I would run, not walk!
                      1 of 1 people found this helpful
                        • Re: Experience with Guidant Financial
                          JDSCENNA Newbie

                          Thanks for the reply. All sounds good but I assume you had the money to put back. Mine in pretty much was used to purchase an existing business. I would have to borrow money to be able to get it back in.
                          and making payment and paying interest is something my business could not handle. I could even handle
                          anymore fees of lawyers and accountant.
                    • Re: Experience with Guidant Financial
                      token88 Newbie
                      IF you still need help send me your contact information : alexmartinez.1@hotmail.com