Stryde Retirement Program (SRP)
Business Owner Retirement Plan
Learn More by watching this Video: www.tinyurl.com/Mfr-SRP
SRP is a proprietary program with Stryde. We are the only company to have it's own dedicated corporate lender. Stryde is the only company to offer one-time underwriting, call protection on the loan, automatic renewability, and the support staff associated with any SRP case to handle illustrations, loan models, communication with the life insurance carriers, client calls, cpa calls, basically any and everything we can do to move that case forward.
With our competitors, you would have to do most of that work on your own. We also offer a back end servicer that is dedicated to maintaining these loans, keeping the clients satisfied, and answering any questions while the loan is in place. We have over $1 billion in assets in our loan portfolio and we close approximately 300 cases per year.
The Stryde Retirement Program is designed to create individualized and proprietary retirement programs for businesses. SRP is a front loaded retirement program. Although there are many nuances to the methodologies behind the working parts of this structure, SRP is simply a tool through which a business owner may have the ability to dramatically advance their wealth accumulation relative to their retirement planning efforts in a highly tax advantaged manner.
The SRP methodology when applied gives business owners the opportunity to take a tax deduction relative to their participation, grow their wealth tax deferred and take distributions out of the retirement planning medium tax free. Additionally, it jump starts their retirement by advancing massive amounts of capital in their program for them, with the goal of realizing superior gains as a result of having more money working for them. This lends itself to having the ability to generate a much larger nest egg that may then be distributed on a tax free basis.
SRP - Stryde Retirement Program FAQs
What is the optimum age a prospect should be to take advantage of SRP?
When SRP is used specifically for retirement purposes, there should be approximately 10 years allowed for the policy to grow. Therefore, the 'oldest' age that a policy would be feasible to fund with the intention of retirement income is around age 60. (This enables the policy to grow for 10 years and loans can begin as tax free income from the policy at age 70.)
If the policy is being used to fund Estate Planning or general death benefit needs then the maximum age is approximately between 80 - 85. This approximation must take into consideration the health of the client, the network and which carrier we will use.
What is the minimum and maximum amount for clients relative to SRP?
The minimum annual payment is only $50K. For example, if were were to do a 5 pay scenario into a life insurance policy, the total loan would be $250,000 at $50,000 annual premium payments for 5 years. There is no overall maximum. Our lender allows for up to two times the client's net worth to be loaned assuming the client can afford the interest payment. Maximums for each individual client typically comes into play when working with the life insurance carrier to justify a death benefit amount.
Is SRP limited to Business Owners? Could other key personnel set one up personally?
SRP is driven by the owner(s) of the business, meaning the owners/board members of the corporation must sign off on the transaction as we are making a corporate loan. Often, owners will use this program to place key man or 'golden handcuff' insurance on one of their employees. However, key personnel cannot utilize SRP individually.
Can SRP be utilized if the owner and other possible participants are already participating in a company retirement or pension plan, 401K or other form of company sponsored retirement planning?
Certainly, SRP can be setup for supplemental retirement income above and beyond the current qualified plan they are participating in and/or an added death benefit for estate planning or wealth transference coverage.
Describe the transition from the Business Owners Qualified Plan to SRP?
There does not have to be a transition as SRP is not a qualified plan and is not restricted to maximum contribution limits as a qualified plan is. The client can continue to contribute to the qualified plan or split the payment between SRP and the existing plan, or stop investing in the qualified plan. It is simply what the client is most comfortable doing.