Baseball is beautiful... but aren't you glad you don't have to make business decisions like you play the game?

The Super Bowl is a distant memory. The dust has settled on the NBA All-Star Game. The entertainment industry has wrapped up their awards season. The snow is pretty well gone and golf courses are opening. All this means… baseball season is right around the corner!

Baseball is as beautiful as it is unique. It’s played on a diamond. No two ball parks have the same field dimensions. There’s no time period. You hit until you make three outs. The managers wear the same uniforms as the players. There are nine players on the field, spread out over an area about of about 100,000 square feet. But the challenge of the game ultimately boils down to who can do what with a ball that’s a little less than 3 inches in diameter.

You may play your position on defense, and never get to touch the ball the entire game. But when that ball comes to you, you better be ready to make the play! And, you better know how many runners are on base! How fast are they? How many outs are there? Where’s the cutoff man going to be? Where will the play be?

A player has to be ready to process multiple factors in an instant, and make the right play in that same instant. It’s all on him. He can’t hand the ball off, wait for specific instructions, hold the ball, survey the field, and ponder his options for a few moments. He has to be ready to act NOW!

When a player is batting, he has about 10 seconds to figure out his hitting strategy while the pitcher is preparing to pitch, and about ONE second to analyze and process the pitch once it's on its way to the plate! Is it in the strike zone? Is it a fastball, or is the bottom going to drop out of it as soon as it reaches the plate? Should he drive it opposite field, or crush it down the line? Again, the batter has to be ready to act NOW!

As beautiful a game as baseball is, aren’t you glad business and industry doesn’t function like this? Isn’t it nice to be able to take time to ponder our decisions, bring in advisers and assistants, look at all the options, put all the key pieces into place, and then act on the decision?

Whether your decisions involve lining up the right suppliers, creating the right marketing plan, designing the right office space, hiring the right individuals, implementing the right financial goals, or developing the right risk management strategy, take time to process all your options, and make the right decisions! DON'T STRIKE OUT!

 

Posted on March 15, 2016 .

What’s So Important About Having the Right Captive Management Firm?

If you’re considering working with a captive insurance management firm, what should you consider? There’s an old adage’ in the captive insurance industry: “If you’ve seen one captive manager, you’ve seen one captive manager.” All captive management firms are not alike! Because captive insurance is so misunderstood, it’s difficult to know what to look for in a good captive management firm. But if you select the wrong captive management firm, you may find yourself in hot water with the IRS, or domicile regulators! Following is list of eight questions that can help you determine just how qualified a captive manager is:

1.      How much experience does the captive manager have? Does the captive manager understand relevant IRS court cases and revenue rulings, and adapted their best practices to conform to appropriate standards?

2.      Is the captive manager affiliated with any professional captive insurance associations? If so, are they attending conferences and staying abreast of current industry standards?

3.      Has the captive manager had any captive insurance clients audited by the IRS? Is there a pattern of frequent IRS client audits, and how have those clients fared in those audits?

4.      Does the captive manager do a thorough feasibility study, using an independent, experienced insurance actuary to determine coverages and premiums? Using an independent actuary means that the manager is striving to achieve the highest levels of legitimacy for the captive insurance companies.

5.      Does the captive manager spend time educating the client, and the client’s team of professional advisors regarding best practices and industry standards? The manager should work closely with your tax advisor, your financial advisor and your legal advisor to ensure everyone is educated regarding appropriate captive strategies for tax, investments, and business and estate planning.

6.      Does the captive manager employ a legitimate risk distribution strategy? Each captive manager should have a strategy for their clients to satisfy the IRS-required risk distribution ruling.

7.      Are the captive management fees appropriate? Are there any hidden fees? You should ALWAYS ask what the services are, for the fees you are quoted. Many managers provide an all-inclusive, turnkey service, while other managers provide an ala carte approach, with fees added on for the same services being offered by the turnkey management firms.

8.      Can the captive manager provide references; not just from current clients, but from CPAs, financial advisors or attorneys they’ve worked with? You should ALWAYS ask for references from current clients and professional advisors, to ensure the manager has a stellar reputation!

Let Montera Captive Insurance Management take care of all your captive insurance needs. Quite simply: We think we're the very best at what we do!

Posted on February 5, 2016 .

Introducing Montera Captive Insurance Management

Introducing a turn-key approach to forming and managing 831(b) captive insurance companies. With a customized solution you can use pre-tax dollars to create a substantial war chest to protect the business you have worked hard to build. A captive insurance company may be the best comprehensive business planning tool available to small business owners today.

Posted on May 7, 2015 .

Lessons from Captive Insurance

Our clients form captive insurance companies to take advantage of a variety of benefits. But ultimately it comes down to risk management and protecting the business. The Captive industry is under scrutiny from a several sources, so it is critical that captives are formed correctly.

Consideration for captive insurance ultimately boils down to a handful of factors:

  1. Is there significant insurable risk in the business? We need to ensure that the captive is issuing legitimate policies covering legitimate risk.
  2. Are the premiums commercially viable? The premiums being paid for these policies must be commercially reasonable and adequate.
  3. Is there an independent actuarial review for the coverages and premiums? To ensure the coverages and premiums are legitimate, Montera uses independent actuarial services to validate the insurance.
  4. Is the company profitable and viable to sustain the captive insurance for a long-term strategy? We want to make sure the company is solid, profitable, and understands the long-term nature of this risk and business management strategy.

If the results of the above concerns are favorable, then captive insurance may be a great strategy to protect your business, and create other significant benefits for your business!

Posted on May 7, 2015 .