17 May Old Habits Die Hard: Coming to Grips With Your Retro
So, your retro check is coming? You’re excited, aren’t you? And you have good reason: your old factory service contracts never rebated your dealership any money, and now you’ve got a check for $600,000 coming in your name! Life is splendid, right?
Well, it’s time to wake up. Retros or rebates of any sort are better than nothing, of course, but your retro check possibly represents only a fraction of the wealth that you could have created. What’s more, it’s fully taxable. Your $600k retro check is worth probably less than $400k once you pay taxes based upon your bracket.
Here’s an idea: Retro Yourself. Instead of letting another company dictate exactly how much (and when) you get a retro check, you have the ability–and the right–to have more control.
The answer is simple: switch to an extended service plan provider who allows you to access earned AND unearned premium, early and often. Pay yourself the $600,000 (or whatever amount is prudent based upon your dealership’s volume), on your own timeline–and do it at a tax-advantaged rate. In doing so, you’ll still leave plenty more money for claims and further wealth-building.
How is this possible? It’s easy–just emulate what your old service contracts provider was doing with your retro: reinsure your dealership’s book of business, and access the capital through either tax-advantaged dividends or loans to yourself. You can sign up for a turnkey reinsurance solution today, spend less than hour online, and be ready to go within two weeks.
While the rest of the industry is focused on smearing lipstick all over their retro programs, we took a different approach: make it easy for dealers to “retro themselves”, out of reinsured capital that is rightfully theirs to start with. Note that all reinsurance providers are not created equal: be sure to look for one that agrees with the philosophy that your reinsured premium is YOUR money, not theirs.
Retro Yourself today at www.sidecarsinc.com. Your family, employees, and favorite nonprofits will never stop thanking you.