As I speak with business owners across the country, I often hear that business is booming. That is great to hear, and it’s especially rewarding because growing businesses fuel more profit, more jobs and wage growth. Nevertheless, history has shown us that most industries have cycles, and, so often, what we do in the good times can help us navigate the inevitable hard times. And, most CFOs will tell you there’s almost no better way to navigate difficult times than with a war chest full of cash and investments.
So, what is a dependable way to build that war chest?
A powerful way for business owners to build a war chest is to own their own insurance company – known as a captive insurance company. Ponder it. Insurance companies build up massive reserves, which explains why they often have some of the largest buildings in many city skylines. Insurance companies receive favorable tax treatment to help them build up those loss reserves. Thanks to Congress and States competing to license captive insurance companies, small and mid-market businesses can now tap into the same war chest building strategies employed by large insurance companies.
CIC Services has been helping business owners build war chests since 2005. Now is the time!