Sales of extended service contracts and warranties on towables and motorized RVs are a critical source of revenue for RV dealers. Unfortunately, this revenue is generally taxed as ordinary income. Effective long-term management of required reserves and surplus funds is necessary to getting the most out of this revenue stream.
Darnall Sikes Wealth Partners offers RV dealers a better, more tax-sensitive dealer reinsurance solution. Warranty revenue flows into the dealer’s own reinsurance company. Required reserves are invested according to an Investment Policy Statement provided by a trustee. As premiums earn out, they can be transferred to a separate surplus account managed directly by the dealer as trustee with greater investment flexibility.
Our reinsurance program stands out. Our custom-built reinsurance solutions give RV dealers the ideal combination of investment flexibility and streamlined management. We will help you determine your long-term wealth goals and then plan and manage your reinsurance cash flow to meet them.
RV dealers and their independent agents benefit from our reinsurance solutions:
When you work with the Darnall Sikes Wealth Partners reinsurance team, you benefit from the operational efficiencies and processes of Avantax, our broker dealer and premier partner to professional CPA wealth management firms across the United States. Avantax, with over $45 billion* in assets under administration, employs approximately 300 experienced financial professionals in its Dallas, Texas headquarters and delivers industry-leading technology resources to its partners. As a result, our reinsurance solutions for RV dealers allow 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 RV dealers with institutional-quality, tax-smart solutions for managing the assets within their reinsurance companies. To learn more, please contact us.
*value as of June 30, 2020