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Monday, November 08, 2010 9:42:53 AM
Diversity Group International Refocuses Business Plan
Refocused Business Plan
Monday November 8, 2010, 9:00 am
MIAMI, FL--(Marketwire - 11/08/10) - Under a refocused business plan, Diversity Group International (Pinksheets:DGIN - News) now operates as a management holding company which is actively seeking to acquire majority interests in startup and small investment management firms. The Company's strategy is to generate growth through investments in new affiliates, as well as through the internal growth of existing affiliated firms.
DGI has developed a strategy ("Venture Equity") which it believes is a superior succession planning alternative for startup to small investment management firms. The Company believes that Venture Equity appeals to target firms for both financial and operational reasons:
Venture Equity allows owners of startup and small investment management firms to sell their interest and acquire an ownership interest in the publicly traded parent, providing liquidity and long-term growth opportunities.
Venture Equity provides management of each Affiliate with autonomy over the day-to-day operations of their firm, and includes a revenue sharing arrangement which provides that a specified percentage of revenues are retained to pay operating expenses at the discretion of the affiliate's management.
DGI has identified two niche areas of the insurance market; first being the Interest Rate Risk and/or Currency Exchange Risk associated with financed life insurance. The second is the utilization of insurance products to facilitate wealth preservation and estate planning. DGI is currently positioned to service the financed insurance market with products delivered by its subsidiary Stonehenge Wealth Management Inc (SWM) and is currently in negotiations to implement and capitalize on the opportunities prevailing in the wealth preservation and estate planning sector of the industry.
SWM's hedging programs, Interest Rate Management Account "IRMA" and the Interest Rate Optimization Strategy "IROS," service clientele utilizing insurance products for estate planning and wealth creation. Typically in these cases the cost of the insurance is financed and is generally referred to as "Premium Financing." Many affluent individuals have a need for large amounts of life insurance but lack the desire or liquidity to pay large annual insurance premiums. The impact of paying premiums with after tax dollars, along with the added probable gift tax liability, makes the actual out of pocket costs prohibitive. Financing these premiums enhances cash flow, provides opportunity for investment of funds that would otherwise be used to pay premiums and offers favourable gift tax implications.
The IRMA product provides clients with floating rate loans the flexibility to lock interest rates at much more competitive rates than a SWAP or fixed rate loan. The IROS product looks to optimize a client's fixed rate loan by reducing the interest costs.
Currently SWM has 13 million assets under management within the IRMA program and is expecting to close another 50 million in assets within the next six weeks. DGI analysis estimates that there are in excess of 40 Billion in new insurance premiums financed per year not including existing loans already originated in the market that could potentially utilize the IRMA and IROS strategies.
The company also plans to enter into an agreement to market a powerful estate planning and wealth preservation product that utilizes Life Insurance products inside the client's registered retirement accounts to minimize the often devastating effects of double-taxation that applies to over-funded retirement accounts at the time of the individual's death (Estate Tax + Income Tax). These over-funded accounts can be subject to taxes as high as 70+%!
Within the United States DGI's research indicates that there are approximately 2.7 million clients with 1.852 Trillion dollars in assets that are candidates for the product; with expected rise in estate and income tax DGI believes that the implementation of this program will be met with a strong consumer desire.
"Insurance has now emerged in the new economy as an untapped investment class and wealth and estate transfer tool," says SWM's President Kevin Bobryk. "We have identified a niche market and expect to see tremendous growth this coming quarter and into next year due to the demand for our strategies through our existing business channels and because of the general direction of higher income and estate taxes."
Diversity Group International Inc. is a Florida-based corporation currently traded under the symbol; DGIN.
FORWARD-LOOKING STATEMENT:
Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. There can be no assurance that such forward-looking statements will prove to be accurate. Actual result and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, other than as required pursuant to applicable securities laws.
Contact:
Contact:
DIVERSITY GROUP INTERNATIONAL INC.
#1903, 1250 South Miami Avenue
Miami, FL, 13310
www.diversitygi.com
Kevin Bobryk
CEO
Email: ir@diversitygi.com
Tel: 1-305-515-5610
Refocused Business Plan
Monday November 8, 2010, 9:00 am
MIAMI, FL--(Marketwire - 11/08/10) - Under a refocused business plan, Diversity Group International (Pinksheets:DGIN - News) now operates as a management holding company which is actively seeking to acquire majority interests in startup and small investment management firms. The Company's strategy is to generate growth through investments in new affiliates, as well as through the internal growth of existing affiliated firms.
DGI has developed a strategy ("Venture Equity") which it believes is a superior succession planning alternative for startup to small investment management firms. The Company believes that Venture Equity appeals to target firms for both financial and operational reasons:
Venture Equity allows owners of startup and small investment management firms to sell their interest and acquire an ownership interest in the publicly traded parent, providing liquidity and long-term growth opportunities.
Venture Equity provides management of each Affiliate with autonomy over the day-to-day operations of their firm, and includes a revenue sharing arrangement which provides that a specified percentage of revenues are retained to pay operating expenses at the discretion of the affiliate's management.
DGI has identified two niche areas of the insurance market; first being the Interest Rate Risk and/or Currency Exchange Risk associated with financed life insurance. The second is the utilization of insurance products to facilitate wealth preservation and estate planning. DGI is currently positioned to service the financed insurance market with products delivered by its subsidiary Stonehenge Wealth Management Inc (SWM) and is currently in negotiations to implement and capitalize on the opportunities prevailing in the wealth preservation and estate planning sector of the industry.
SWM's hedging programs, Interest Rate Management Account "IRMA" and the Interest Rate Optimization Strategy "IROS," service clientele utilizing insurance products for estate planning and wealth creation. Typically in these cases the cost of the insurance is financed and is generally referred to as "Premium Financing." Many affluent individuals have a need for large amounts of life insurance but lack the desire or liquidity to pay large annual insurance premiums. The impact of paying premiums with after tax dollars, along with the added probable gift tax liability, makes the actual out of pocket costs prohibitive. Financing these premiums enhances cash flow, provides opportunity for investment of funds that would otherwise be used to pay premiums and offers favourable gift tax implications.
The IRMA product provides clients with floating rate loans the flexibility to lock interest rates at much more competitive rates than a SWAP or fixed rate loan. The IROS product looks to optimize a client's fixed rate loan by reducing the interest costs.
Currently SWM has 13 million assets under management within the IRMA program and is expecting to close another 50 million in assets within the next six weeks. DGI analysis estimates that there are in excess of 40 Billion in new insurance premiums financed per year not including existing loans already originated in the market that could potentially utilize the IRMA and IROS strategies.
The company also plans to enter into an agreement to market a powerful estate planning and wealth preservation product that utilizes Life Insurance products inside the client's registered retirement accounts to minimize the often devastating effects of double-taxation that applies to over-funded retirement accounts at the time of the individual's death (Estate Tax + Income Tax). These over-funded accounts can be subject to taxes as high as 70+%!
Within the United States DGI's research indicates that there are approximately 2.7 million clients with 1.852 Trillion dollars in assets that are candidates for the product; with expected rise in estate and income tax DGI believes that the implementation of this program will be met with a strong consumer desire.
"Insurance has now emerged in the new economy as an untapped investment class and wealth and estate transfer tool," says SWM's President Kevin Bobryk. "We have identified a niche market and expect to see tremendous growth this coming quarter and into next year due to the demand for our strategies through our existing business channels and because of the general direction of higher income and estate taxes."
Diversity Group International Inc. is a Florida-based corporation currently traded under the symbol; DGIN.
FORWARD-LOOKING STATEMENT:
Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. There can be no assurance that such forward-looking statements will prove to be accurate. Actual result and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change, other than as required pursuant to applicable securities laws.
Contact:
Contact:
DIVERSITY GROUP INTERNATIONAL INC.
#1903, 1250 South Miami Avenue
Miami, FL, 13310
www.diversitygi.com
Kevin Bobryk
CEO
Email: ir@diversitygi.com
Tel: 1-305-515-5610
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