We look forward to the Van Mueller newsletter every month. It's chock-full of sound bites, sales tips, and eye-opening statistics. Here are our favorite parts of the February 2018 edition. We're sharing the full introduction, and 2 of the 7 monthly sales ideas. If you like what you read, we encourage you to click here and become a subscriber.
Reprinted with the author's permission.
February, 2018 – 7 Ideas and Views Newsletter by Van Mueller
Mark Miletello, Lance Johnson and I have created a website that we told you about several months ago. That website is www.vanmark.life. It allows us to help train property and casualty agents and their agencies to build stronger P&L agencies quicker and more efficiently. It also allows us to help them transition easily into life and annuity and mutual fund sales that so many companies require to become eligible for bonuses and trips. We show how this can be done easily, by PRACTICE without harming the agent's book of property and casualty business.
We also help life, annuity, health insurance agents and securities licensed agents to build efficient practices that help them easily increase the number of appointments they get. The ongoing training allows agents to perform better in the actual presentations.
Think about this: Have you ever been in a presentation where you were able to ascertain to a certainty that your prospects or clients needed what you were presenting to them? Then, did you give one of your best presentations you've ever given and yet, they still didn't take action?
Do you know why? In most cases it was one of two things: They either didn't understand what you were talking about or they did not have any way to measure whether what you were showing them was beneficial to them. When I ask agents if this ever happens, every hand in the room goes up.
This website, www.vanmark.life, on an ongoing basis helps you to develop skills that with just a little PRACTICE will increase your results in those circumstances dramatically.
For many of you one additional sale per month would change your career. One additional sale per week would dramatically change your career for the better. One additional sale per year would pay the annual cost to participate in this training.
For many of you one additional sale per month would change your career.
The feedback we are receiving so far has been exceptional. Access to monthly seminars with me keeps the agent current and allows them to be using ideas before other agents and agencies even know about them.
People like Tony Robbins and Zig Ziglar used to talk always about not learning the hard way. They teach that you should find someone who is already doing what you want to do and then duplicate it. It is the fastest and most sure way to achieve the success you desire.
This could not be a better time to learn these skills. We have enormous uncertainty in insurance, taxes, investing and retirement. If you can learn and then PRACTICE how to provide certainty to prospects and clients you will have a more successful career than you could ever dream of.
Please go to www.vanmark.life and check it out. If you experience the immediate results that other enrollees have experienced you will be in a position to benefit prospects and clients at one of the most important times in history. www.vanmark.life; discover for yourself how to build a career and an agency more efficiently and quicker than you could without this training. Mark, Lance and I look forward to working with all of you.
I also want to make sure I provide you with questions that you should be asking to get and increase appointments. I will give you several that should increase the amount of appointments and also increase the quality of those appointments.
I also want to make sure I provide you with questions that you should be asking to get and increase appointments.
Question #1: This is the hottest question in the insurance and financial service industry. We have been led to believe that 10,000 Baby Boomers per day are retiring. That is an average over the entire span of the Baby Boomer generation which included people born between 1946 and 1964. However, the number one birth year in the history of our country is 1957 followed closely by 1958 to 1964. That means 70 percent of the Baby Boomers retire between 2022 and 2029 at the rate of 12,500 per day. So, you haven't missed it. This questions always leads to interest and most of the time to an appointment if asked correctly.
Remembering that the earliest you can take Social Security retirement benefits is age 62 and the latest you can take Social Security retirement benefits is age 70. Here is the question. You should ask everyone who is within 15 years of receiving Social Security benefits this question: "What is the best age to take your Social Security?” How do you maximize rather than minimize your Benefits? Or, do you know there are 567 ways to take your Social Security benefits? Which ones maximize your benefits rather than minimize them? If we could help you to clarify how to maximize rather than minimize your benefits and that there was no cost or obligation to do so, could you find me 45 minutes in the next week of two?
If they answer the best age to take Social Security is age 62, ask them if they live to age 95 do they realize they cost themselves and their families hundreds of thousands in lost benefits. If they answer the best age is age 70, ask them if they die before age 70 haven't they possibly cost themselves and their families tens of thousands in lost benefits? No matter what age they select ask them about living too long or dying too soon. Then say, can I give you a couple of examples of questions that we will ask? They always say, sure. Are your mother and father still alive? How old are they? If they are deceased, ask how old they were when they passed away. You are looking for longer or shorter life spans. Then ask this person if they have any chronic illnesses. Explain that there is math to determine the breakeven age for taking benefits. Explain that you will take them through a process to maximize this vitally important benefit.
Explain that you will take them through a process to maximize this vitally important benefit.
Question #2: Where is it written in finance that you have to lose 30 or 50 or even 70 percent during downturns if you will make money long term? Why do people do that? How many times are they going to let Wall Street take their money before they say enough is enough? Would they be further ahead if they had not lost money in 2000 to 2002 or 2007 and 2008? If we could show you a way to never lose money ever again would that be important? Even more important, if because you didn't lose any money, you could then access those funds to take advantage of upturns in the market would that be important information? If there was no cost or obligation and all we would do is ask you questions that would help you clarify how to proceed successfully, could you find me 45 minutes in the next week or two?
Question #3: Do you have enough confidence in your current advisor to get a second opinion? If they say yes, you reply, great can we meet next week in the afternoon or evening? If they say no, ask if they lost some money during the last downturn. What if there was a way to guarantee that wouldn't happen again and better than that what if they could position themselves to take advantage of rather than be hurt by any major downturn? If no cost or obligation, could you find me 45 minutes in the next week or two?
Question #4: Do you want to be rich or do you want an absolute, positive guarantee you will never be poor? If they say rich ask them this. What if I could show you a way to accomplish that faster than you could ever dream of, could you find me 45 minutes in the next week or two? I will only ask you a series of questions that will allow you to clarify the best way to make that happen.
Ninety percent of the time they will say they want the guarantee. Ask them if we could show you a way that even if you ran out of money you would never run out of income, in these uncertain times, wouldn't that be valuable information? Do we sell products like that? Of course, we do. Does America know we sell products like that? Absolutely not! We must ask our prospects and clients about this information.
This is one of the most important benefits we provide. A guaranteed income that people cannot outlive.
This is one of the most important benefits we provide. A guaranteed income that people cannot outlive.
Question #5: If you retire at age 65 and you die at age 70 will we have a difficult time planning your retirement? Probably not. However, if you retire at age 65 and live to age 95 and run out of money at age 72, and by the way, isn't age 72 the new age 52? Aren't 72-year old's doing what 52-year old's used to do? What would the last 20 years of your retirement be like if you didn't have any money?
As Tom Hegna shares with all of us, longevity is not only a risk, it has become a risk multiplier. We have to deal with issues like taxes, lost benefits, inflation and volatility in a more serious way the longer we live. We must help our prospects and clients plan for living too long.
Question #6: Is there someone at one of these local nursing homes that you are so fond of that you want to leave them all of your money? Did you know there are new studies that show Americans on average lose everything they have worked their whole lives for after only six months in a long term care facility? What if there was a way to provide leveraged benefits for long term care just by repositioning assets. This way you would still have the use of those assets during your lifetime and those assets could still be used to take advantage of investment opportunities. If there was no cost or obligation and all I am going to do is ask you questions that will allow you to clarify in your own mind how you could control this situation rather than be controlled by it, could you find me 45 minutes in the next week or two?
Question #7: This is also as hot a question as what is the best age to take your Social Security? You must ask this question of everyone you come across. EVERYONE! Is there someone at the Internal Revenue Service that you are so madly in love with that you want to leave them a whole bunch of your money? They will ask, how do you know that? Ask them back this question. Don't you have an IRA or 401k or 457 Plan or 403B? Do you realize that if you have two or more beneficiaries on those accounts that are not your spouse that the Internal Revenue Service will be the primary beneficiary of your life's work? Are you okay with that? Are you going to leave it like that or are you going to arrange things so you can be in control of how much you give the Internal Revenue Service? When the government needs more revenue in the future for Social Security, Medicare, Medicaid, The Unaffordable Care Act, Defense, Homeland Security, Interest on the Debt, Hurricane Harvey, Irma and Maria, Forest Fires in California, the highest tide in the history of Boston during a snowstorm, Earthquakes, Floods, Tornadoes, Etc. Will they get the money from the 980 percent of Americans who don't have any money or the 10 percent who do? Do you want to be in control of what they take or be controlled? Shouldn't you do this while you still can?
I am adding the sales idea from last month with corrections and additions. Use this to talk to people about how to get control of their future income tax liability.
I am adding the sales idea from last month with corrections and additions. Use this to talk to people about how to get control of their future income tax liability.
Married Couple Over Age 65 (Does Not Consider Social Security)
1. Standard Deduction in 2018: $26,600
Personal Exemption in 2018: $0
(New Law Eliminated Benefit) Total: $26,600
First $26,600 of taxable income is not taxable because it is offset by the standard deduction. If you withdrew $26,600 every year for 20 years you have withdrawn $532,000 and paid NO income tax on those fully taxable withdrawals.
2. The next $19,050 of income is taxed at 10%. That is $1,905. If you divide $1,905 by $45,650 ($26,600 + $19,050) the percentage is 4.1%. If your clients drew out $45,650 per year for 20 years they would withdraw $913,000 of fully taxable money. At this level, they would pay 4.1% of $913,000 or $37,433 to eliminate the income tax liability on this money.
3. The next $58,350 of income is taxed at 12%. That is $7,002. If you divide $8,907 ($1,905 + $7,002) by $104,000 ($26,600 + $77,400) the percentage is 8.6%.
If your client withdraws $104,000 per year of fully taxable money every year for 20 years they would withdraw $2,080,000. At this level, they would pay 8.6% of the $2,080,000 or $178,880 to eliminate the income tax liability on this money.
4. The next $87,000 is taxed at 22%. That is $19,272. If you divide $28,179 ($1,905 + $7,002 + $19,272) by $191,600 ($26,600 + $77,400 + $87,600) the percentage is 14.7%.
If your client withdrew $191,600 per year for 20 years they would withdraw $3,832,000 of fully taxable money. At this level, they would pay 14.7% of $3,832,000 or $563,304 to eliminate the income tax liability on this money.
5. The next $150,000 is taxed at $24%. That is $36,000. If you divide $64,179 ($1,905 + $7,002 + $19,272 + $36,000) by $341,600 ($26,600 + $77,400 + $87,600 + $150,000) the percentage is 18.8%.
If your client withdrew $341,600 per year for 20 years and paid the taxes on that money every year for 20 years they would withdraw $6,832,000 of fully taxable money. At this level, they would pay 18.8% of $6,832,000 or $1,284,416 to eliminate the income tax liability on this money.
6. (0% Bracket) Ask your client is they would be willing to eliminate taxes on $532,000 at the zero percent level by PAYING NOTHING.
(10% Bracket) Pay only $37,433 to eliminate income taxes on $913,000 over 20 years. The effective tax rate is 4.1%.
(12% Bracket) Pay only $178,880 to eliminate income taxes on $2,080,000 over 20 years. The effective tax rate is 8.6%.
(22% Bracket) Pay only $563,304 to eliminate income taxes on $3,832,000 over 20 years. The effective tax rate is 14.7%.
(24% Bracket) Pay only $1,284,416 to eliminate income taxes on $6,832,000 over 20 years. The effective tax rate is 18.8%.
7. The magic of the progressive tax law is that the client can control their income tax liability. If they wait until they die the tax liability could easily increase to 30 or 40 or even 50 percent because it is now controlled by the Internal Revenue Service.
8. At each of the above income levels you can reallocate “forever taxed” money into “never taxed” products like annuities, modified endowment contracts (MECs) or annual premium life insurance policies on any of the annual withdrawals. You can reallocate the money after it has been withdrawn and the taxes have been paid on the withdrawals.
9. This strategy is used to reduce or eliminate taxes on IRA and 401k withdrawals. This can also be used to eliminate deferred gains on existing annuities. It can be used to eliminate capital gains taxes at the 0%, 10% and 12% tax rates. Remember The Rule of 104-12. If a married couple over age 65 make less than $104,000 they are in the 12% ordinary income tax bracket.
That puts them in the 0% capital gains tax bracket. This is a great opportunity to access capital gains in stocks, bonds, mutual funds and real estate.
10. Life Insurance and Annuities Also Feature These Benefits:
- No Probate (With named beneficiaries)
- Incontestable and Private
- Control from the grave
- Creditor and predator protection
- Medicaid versatility
Single Over Age 65 (Does Not Consider Social Security)
Standard Deduction in 2018: $13,600
Personal Exemption in 2018: $0
(New Law Eliminated Benefit) Total: $13,600
(0 Percent Bracket) First $13,600 of taxable income has zero tax.
(10% Bracket) The next $9,525 of taxable income has only $953 of taxes on $23,125. The effective tax rate is 4.1%.
(12% Bracket) The next $29,175 has only $4,454 of taxes on $52,300. The effective tax rate is 8.5%.
(22% Bracket) The next $43,800 has only $14,090 of taxes on $96,100. The effective tax rate is 14.7%.
(24% Bracket) The next $75,000 has only $30,590 of taxes on $171,100. The effective tax rate is 17.9%.
The Rule of 104-12 for marrieds becomes The Rule of 52-12 for singles.
Really Examine this idea. Read it and learn it and practice it 100 times if you have to. It will be one of the most beneficial things you ever do for your career.
You can make $1,000 per year life sales all the way to $341,000 per year life sales once you understand the concept. I will discuss this more next month.
Let's get started with idea #1.
***
We're passing on two of the newsletter's monthly sales ideas - every issue of the newsletter contains 7 ideas, plus one idea for the Canadian market. Subscribe to get them all.
Idea #1: Medicaid Eligibility
Who is eligible for Medicaid? How much income and assets can you have if you are married to qualify for Medicaid? How much assets and income are you allowed to qualify for Medicaid if you are single?
What are exempt assets if you are married and are there some exempt assets if you are single?
How can you convert countable assets into non-countable income streams?
K. Gabriel Heiser has written a book “How To Protect Your Family‟s Assets From Devastating Nursing Home Costs: Medicaid Secrets”. Every agent should have the skills necessary to help people in Medicaid. They should know how to convert assets into income. They should understand how to use Medicaid Annuities.
Do you realize that Burial Trusts and Funeral Trusts are exempt assets; even for single people?
Mr. Heiser also devotes a couple of chapters to veteran's pensions. In his book he estimates that 33 percent of all the people over the age of 65 or around 11.5 million seniors could qualify for VA pensions or death pension. Here is the shocking information: Less than 5 percent of the people who are eligible are receiving benefits.
This knowledge has been an important and valuable part of my practice. This book provides the most currents information available.
Title: Before you need nursing home care, bone up on Medicaid eligibility
www.chicagotribune.com (Chicago Tribune, January 3, 2018)
http://www.chicagotribune.com/business/sns-201801031204--tms--savingsgctnzy-a20180103-20180103-story.html
Idea #6: GE Could Easily Be the Next Enron
GE unfunded pension liability is $31 billion. There are over 600,000 former and current GE employees who are depending on those pensions.
Boeing has a $20 billion pension deficit. General Motors has an $18 billion pension deficit. The math says General Motors‟ cost to build a car are overwhelmed by pension and healthcare cost. Those costs are more than the materials to build these cars.
Why am I asking you about this? How many other pensions in our country are dramatically underfunded? Where will we get this money? What will happen to the quality of life of the people who do not receive their promised pensions?
Shouldn't we use articles like these to inspire prospects to plan as if their pension or promised healthcare benefits will not be there? When you read the article, you will realize that this will only get worse.
States, counties, cities, municipalities, townships, fire, police and teacher and public service pensions will all face dramatic economic stress going forward. What happens to all these pensions when the stock market crashes? You have no idea how underfunded these plans are.
Don't assume Americans know. Ask them what they want to happen if their pension and healthcare provider cannot provide the promised benefits. This is an important discussion to have with everyone.
Title: GE's $31 billion pension nightmare
www.money.com/ (Money, January 19, 2018)
http://money.cnn.com/2018/01/18/investing/ge-pension-immelt-breakup/index.html
Get more sales tips and insights when you subscribe to Van Mueller's monthly newsletter.
This was just a taste of what he publishes each and every month. If you want to read more, click here to become a subscriber.
