There are many retirement vehicles available in the market today, 401K’s,
IRA’s, Roth IRA’s, Social Security.  I looked them up and they are all boring,
limited and restrictive. So, what’s a dealer to do? Real Estate, Stock Market?
Both are unpredictable and use already taxed dollars.

What if you could take something you are already doing, tweak it and turn
into the best retirement program out there?

 

First let’s get something straight.

 

1.  I am not a Retirement Planner.

 

2.  This is not a Retirement Plan.

 

What I am, is an Expert on Dealer Owned Reinsurance Companies. 

 

Dealer Owned Reinsurance Companies meet the IRS requirements of transfer of
risk and are considered small Property and Causality companies by Uncle Sam.
”Small property and casualty insurance companies with less than $1,200,000 in
annual net premiums may elect to be taxed only on investment income under
Internal Revenue Code 831 (b).” Distributions are taxed at the dividend rate,
currently 15%.

 

So what the heck does that mean?

 

Well, you know those Vehicle Service Contracts or Warranties you have been
selling for the “Warranty Guy” that stops by your store? His company is making a
fortune off of you.

 

So, let’s say you listen to me and let me help you set up your own warranty
company. The money you sent in to those other guys now goes into Your
Warranty Company
and as you read above, as long as you keep it under
$1,200,000 per year, you don’t pay federal income tax.

 

So, what are we talking about here?

 

If you sell 20 VSC’s (Vehicle Service Contracts) per month and 50% of the
reserve you sent in went to pay claims (our average loss ratio is 39%), in only
5 years you would have over $500,000 in your warranty company. By the way, did I
mention that it is federal income tax FREE.

 

If you put a 3 month warranty on 20 cars a month you would have over $300,000
after claims in 5 years. Federal Income Tax Free.         
Hello!!

 

Who needs a retirement account??

 

 

 

Tim Byrd is the president of Tim Byrd & Associates, Inc. an Auto Industry
Expert on Producer Owned Reinsurance Companies.

 

Tim has been in the car business for 25 years and been a trusted advisor to
many car dealers.

 

As seen in:

 

The Virginia Independent News & Around the
Commonwealth.

 

VIADA Preferred Partner

 

www.timbyrd.net

 

Please contact Tim Byrd at 757-532-3938 or TimByrd@TimByrd.net for a
Proforma.

 

 

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