Furniture dealers often operate with tight margins, where every source of revenue is precious. Few revenue streams can add additional value to dealers more than extended warranties … but they can also cause challenging tax issues, since warranty income is generally taxed as ordinary income.
Fortunately, Darnall Sikes Wealth Partners offers a better, more tax-aware solution: having the warranty revenue flow into the dealer’s own reinsurance company (an arrangement also known as dealer reinsurance), where required reserves could be invested in accordance with a trustee-provided Investment Policy Statement. Once the premiums are earned out, a surplus account can be formed which provides greater investment flexibility to the dealer as trustee.
We’ve custom-built our reinsurance programs to give furniture dealers the ideal combination of flexibility and hassle-free management. In the process, we help you plan and manage your warranty cash flow to meet your long-term wealth goals.
We offer a better, more tax-aware solution that benefits both furniture dealers and their agents:
When you work with Darnall Sikes Wealth Partners reinsurance team, you benefit from the operational efficiencies and processes of 1st Global, our broker dealer and premier partner to professional CPA wealth management firms across the United States. 1st Global, with over $27 billion* in assets under advisement employs over 200 experienced financial professionals in its Dallas, Texas headquarters and delivers industry-leading technology resources to its partners. This allows for expedited document processing and account opening.
Darnall Sikes Wealth Partners works hard to achieve our reinsurance program service-level goals:
Our experience in doing business with reinsurance companies allows us to provide dealers with institutional-quality, tax-optimized solutions for managing the assets within their reinsurance companies. To learn more, please contact us.
*value as of June 30, 2018