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 January 2021 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.
January 2021 – 7 Ideas and Views Newsletter by Van Mueller
The goal of this newsletter is to share skills and techniques that will help you accomplish whatever you set out to do in 2021. You can increase your production in days or weeks rather than months or years. The only variable is how much you are willing to practice.
If there was a way to make 2021 your best year ever, would you practice the skills necessary to make that happen? If you could help more people than you could ever imagine, would you practice the questions that would allow you to intuitively be of service to those people? If you are already successful, would you practice the techniques that would significantly shorten your sales cycle so you could have additional time to help more people or spend more time with your family and friends? Success can be achieved quickly, efficiently and effectively, but only if you actually practice the questions and ideas shared in this newsletter.
And practice doesn’t mean by yourself or in front of a mirror. You must practice on prospects and clients. Will it be difficult or uncomfortable in the beginning? Of course: Won’t it also become easier and more natural the more you practice? Of course! These are all learned skills. I learned how to do them and so can you. With practice you can become as good as you want to be. But only you can answer the most important question: WHEN DO YOU WANT TO GET STARTED? I hope the answer is TODAY.
You must practice on prospects and clients. Will it be difficult or uncomfortable in the beginning? Of course: Won’t it also become easier and more natural the more you practice?
If you use this newsletter along with the three previous newsletters and the three next newsletters, in 2021 you will have the foundation to answer all the questions posed at the beginning of this month’s newsletter.
I broke this month’s newsletter into three parts. First, why it is vital for you to learn these skills? Second, what tools will you require to be an advocate for the American people? Finally, how you can “find the money” to build successful strategies for our customers.
First, why must we develop these skills?
Mathematically, it is no longer possible for government to fix the financial challenges that Americans will face in the future. However, it is still mathematically possible for individual Americans to have financial and retirement success and build the financial “freedom” they desire. But they must take action while they still can.
According to many sources, federal income taxes will increase from $3.4 trillion currently to $6.8 trillion by 2028. The U.S. Debt Clock predicts that our government will have almost $87 trillion of debt by 2028. That is this decade! We are building overwhelming debt at all levels of government. In addition to our federal government, the states, counties, cities, townships and municipalities face crushing debt. Several states are already using streets as collateral for pension loans. Demographically, won’t government require more money for all our retirees who are living longer than they have ever lived? Won’t this dramatically increased debt and possibly higher interest rates cause our government to have to pay more and more interest on that debt?
With this knowledge, the government continues to encourage Americans to take a tax deduction now on a small amount of contribution when taxes are historically low, so Americans can build a fully taxable, much greater amount of money in the future that the government can tax at any level they require. Does that sound beneficial to our customer?
Instead, ask: Mr. & Mrs. Customer, do you think taxes be higher in the future? Do you want to pay those taxes? If you could be in control of how much tax you pay rather than allowing the government to be in control of how much tax you pay, would you want to develop a strategy and when would you want to get started?
If you could be in control of how much tax you pay rather than allowing the government to be in control of how much tax you pay, would you want to develop a strategy and when would you want to get started?
An additional tax is the “stealth tax” called inflation. Our customers understand inflation better if we describe it as “lost purchasing power.” It is predicted that the M² money supply will increase by almost $100 trillion in the next seven years. What does that do to the purchasing power of our money? Isn’t that a tax? Inflation is even more insidious than the increased income tax, because increased income taxes will only impact 15 to 20 percent of Americans, but inflation will impact 100 percent of Americans. No matter whether you are poor or rich or middle class, you will pay the stealth tax. How do we know for sure the stealth tax is coming? Mathematically, after raising taxes and lowering benefits, government will have to print enormous amounts of new money. It is the only way they can provide the promised benefits and services necessary to run a country.
At the same time, people are now in debt more than they ever have been in American history. Please remember what we have all learned together: “Debt Signals The Need For Life Insurance.” If our customers claim they can’t afford the premiums for life insurance to offset their debt if they die, please ask them how their survivors will afford the debt. Isn’t it a mistake to assume that our customers are thinking in an organized manner about issues like these? Shouldn’t we always ask if our customers realize the predicament they are creating for personal and business survivors and loved ones?
Please remember what we have all learned together: “Debt Signals The Need For Life Insurance.”
These questions show only a small amount of the many reasons why your skills and expertise are so desperately needed right now. More evidence will be provided in future newsletters.
Second, what tools can be used to inspire our customers to take action?
Here are a few that will get you started:
Please don’t just use the free app. Purchase for a few dollars the app that will provide information to 2028 and other additional nuggets of information to share with customers.
This shares from an accountant’s viewpoint the financial difficulties our country, the states and the 75 largest cities in the U.S. face. Where will we get the money to meet all their requirements?
3. Wage Statistics for 2016
When you “Google” those words it takes you to an amazing chart that shows what Americans earned from the year 1990 to 2019. 81 percent of Americans make less than $75,000. How will we tax them in the future? Not with an income tax. We will all pay stealth tax.
Third, how do you “find the money” to build successful strategies for our customers?
If you are going to use this information as effectively as possible, www.irs.gov is one of your most important tools. In order to “find the money” for your prospects and customers, you must have a basic understanding of income tax law. If you wish to increase your production, I repeat, you must have a basic understanding of income tax law.
In order to “find the money” for your prospects and customers, you must have a basic understanding of income tax law.
Here’s the easy way: Go to the IRS website and find “Forms and Publications.” Print out the ENTIRE 1040 instructions book. Currently, the instructions are only available for 2019. They will not make the 2020 instructions available until mid to late January. Don’t wait. Print out 2019. It is around 115 pages. Read it as many times as it takes to form a basic understanding. In the 2019 version, pay particular attention to the pages I reference below – understanding these pages will change your career and will change your customers lives.
Page 28 – How much Social Security is taxable
Page 30 – Standard deduction for people over age 65
Form 1040 – Standard deduction for people under age 65
Page 103 – Income and outlays for our government
Page 104 – Tax tables
The page numbers will change when the 2020 instructions come out. The forms will be adjusted to reflect 2020 filings. Remember to print out and share the entire instructions with customers so they understand that the important information comes from the government and not you.
Remember to print out and share the entire instructions with customers so they understand that the important information comes from the government and not you.
The second easiest way to learn how to use income tax knowledge will be provided in the next few pages of this newsletter. I have updated all the numbers to reflect 2021 tax law. I am expanding the narrative to go along with the presentations I am sharing. I want to share how to have a conversation with our customers about the information being provided.
Before I begin, a caveat: these are merely a few examples to be used as a guide. There are many permutations. For example, these examples do not include state income taxes. Some states do not have income taxes. Many states do not tax Social Security. I use all of the examples with Social Security so you can easily explain why even having 85 percent of your Social Security taxable is preferable to waiting and having 40 or 50 percent of your 401(k), IRA, 403B or 457 plan taxable after you have built it into a large amount of money.
There are unlimited examples of how to use this information. These examples try to cover as many bases as possible to expand your creativity when it comes to providing quality answers for all the challenges our prospects and clients will face in the future. This information shows you how to use the “progressive” nature of our tax laws to turn marginal tax rates into smaller “effective” tax rates. Even if the rates go up, the law will most likely remain a progressive tax law. You are building a foundation for the rest of your career.
These examples try to cover as many bases as possible to expand your creativity when it comes to providing quality answers for all the challenges our prospects and clients will face in the future.
Let’s get started with the 2021 presentation.
Married Couple Over Age 65
(Assumes $30,000 of Annual Social Security:
This is the Average Social Security)
1. Social Security: $30,000
Standard Deduction in 2021: $27,800
Total Income: $57,800
How Much is Taxable of the $57,800? $5,400
A married couple could withdraw $27,800 of fully taxable money in addition to their $30,000 of Social Security and only pay taxes on $5,400, which would be $540.
$27,800 = $0
This is the taxable Social Security $5,400 = $540
Total = $540
This couple could withdraw $57,800 of Social Security and fully taxable money every year for 10 years for a total of $578,000 or $57,800 every year for 20 years for a total of $1,156,000 and only $5,400 in ten years or $10,800 in 20 years in federal income taxes. That is less than one-tenth of a percent tax.
Ask Them If This Would Be Beneficial For Them And Their Family Or Business!
Additionally, the average life expectancy for a couple over age 65 is 20 years. Many live 25 or 30 years. Wouldn’t elimination of the future income tax liability make their money last longer without adding additional risk?
You will probably use the example in number one the most. Let’s discuss the opportunities:
- The number you should be paying attention to is $57,800 in this example. Simply stated, if any of your customers have less than $57,800 of gross income that includes their Social Security, they should be withdrawing the difference and paying the income taxes now at THEIR tax rate. If a client has $50,000 of income including their Social Security, wouldn’t it be beneficial to withdraw another $7,800 of fully taxable income if it would only cost them $540 in taxes to eliminate the taxes on that money forever? In ten years removing the income tax liability on 10 years of $7,800 or $78,000 would be $5,400. In 20 years, it would cost then $10,800 in taxes to eliminate the tax liability on $156,000 of fully taxable money. Ask them, why wouldn’t everyone do that?
- Now let’s say we have a retired couple living on $30,000 of Social Security receiving a required minimum distribution of $11,000. That would be the approximate RMD on $300,000 of qualified money. Shouldn’t you ask them why they aren’t taking another $16,800 from their qualified money if it only cost them $540 to eliminate the income tax liability on that money forever? If you reallocated that $16,800 every year into a cash value life insurance policy, after 10 years wouldn’t you have converted $168,000 of forever taxed money into $168,000 of never taxed money? Wouldn’t that $168,000 of never taxed, (cash value) provide a leveraged death benefit of $300,000 or $400,00 and the ability to cover long term care without wasting any premiums? Ask your customer if they know how brilliant they are. After all, they figured out a way to eliminate taxes on $165,000 for only $5,400 and when they die, the death benefit will reimburse their family for the $5,400. So, they got all the fully taxable money out without paying one cent of the tax out of their own pocket. Isn’t that amazing Mr. & Mrs. Customer?
- Ask your customer to consider that they have never met you. Then say one of them requires long term care for the last two years of their life. Did you notice that I didn’t say nursing home? 40 percent of the people who have died in our country due to COVID-19 have died in nursing homes. Ask them: Would you ever put someone you love in a nursing home if you didn’t have to? So, wouldn’t you prefer your care to be in your own home? If the care at home costs $80,000 per year, there is literally nothing left of the $168,000 that was in the IRA or 401(k). If there is $168,000 of cash value in a cash value life insurance policy that has only a $300,000 face amount, couldn’t our customer use $150,000 of the cash value over the last two years of care and then have that asset replenished at death by the life insurance face amount? Ask them if they know anything in the world that can do what you just described. Then say, I have a surprise for you. If you don’t need the cash value while you are alive, then you didn’t waste one cent of premium on the long-term care coverage. Your family, business or charity will receive $300,000 income tax free. Ask them again: Do you know anything else in the world that can do what I just described?
Remember, if they live on their Social Security, using the average of $30,000 I provided they could withdraw $27,800 per year of fully taxable income and ONLY pay $540 in taxes. If they live on $55,000 per year, they could use the $2,800 to buy life insurance which would help offset any income tax liability on qualified money. The total income tax liability in example number one is only $540. Shouldn’t every one of our customers know this information?
2. Social Security: $30,000
Standard Deduction in 2021: $27,800
10% tax bracket: $19,900
Total Income: $77,700
How Much is Taxable of the $77,700? $73,200
A married couple could withdraw $47,700 of fully taxable money in addition to their $30,000 of Social Security and only pay taxes on $73,200, which would be $5,050.
$27,800 = $0
$19,900 = $1,990
$25,000 = $3,606
Total = $5,050
This couple can withdraw $77,700 of Social Security and fully taxable money every year for 10 years for a total of $777,000 and only pay $50,500 in income taxes or take out $77,700 per year for 20 years for a total of $1,554,000 and only pay $101,000 ($5,050 x 20 years) in federal income taxes over 20 years. That is 6.5 percent effective tax rate.
Number 2 is an extension of number 1, but now I added the entire 10 percent tax bracket to the withdrawal. The 10 percent tax bracket for 2020 is $19,900. If you add the $30,000 of Social Security and the $27,800 Standard Deduction and the entire 10 percent tax bracket, they add up to $77,700. Using the Social Security chart in the 1040 instructions, we can calculate that only $25,500 of the Social Security is income taxable in this example. So, even though we have a gross income of $77.700, only $73,200 is subject to income tax. That liability is $5,050.
If we divide $5,050 by the $77,700 of gross income, we find the effective tax rate is 6.5 percent. Ask: if they could eliminate the income tax liability on an additional $19,900 of fully taxable money for less than 7 percent per year, would they do it? The vast majority will in a heartbeat, if they knew about it. The reallocated money can be used for financial success and things like long term care and out of pocket healthcare costs. It can also provide tax free supplemental income late in life. Isn’t this a more effective use of the money than leaving it in an IRA or 401(K)?
3. Social Security: $30,000
Standard Deduction in 2021: $27,800
10% tax bracket: $19,900
12% tax bracket: $61,150
Total Income: $138,850
How Much is Taxable of the $138,850? $134,350
A married couple could withdraw $108,850 of fully taxable money in addition to their $30,000 of Social Security and only pay taxes on $134,350, which would be $14,938.
$27,800 = $0
$19,900 = $1,990
$61,150 = $7,338
$25,500 = $5,610
Total = $14,938
This couple could withdraw $138,850 of Social Security and fully taxable money every year for 10 years for a total of $1,388,500 and pay only $149,380 in taxes. If they withdraw $138,850 for 20 years they would withdraw a total of $2,777,000. They would only pay $298,760 ($14,938 x 20 years) in federal income taxes over 20 years. That is an effective tax rate of 10.76 percent.
Number 3 is how you begin to write really large cases. That is why I worked so hard on the last four newsletters. I wanted to share a substantial amount of third-party information showing you just how much governments at every level will require enormous amounts of additional revenue. Using that information, ask your customers if they are building a legacy for the government and Internal Revenue Service or for their family? Applying these strategies helps to begin a process of income tax reduction and reallocation of these funds to a more effective and efficient use. In example 3 we are using the entire Standard Deduction. We are also using the entire 10 percent and 12 percent income tax brackets. That amount with Social Security added is $138,850. Because 85 percent of the Social Security is taxable only $134,350 of the $138,850 is taxable.
Think of this: A couple requires $70,000 to live. They could withdraw $138,850. The income tax is $14,938. Add that to the $70,000 they need to live on and subtract it from the $138,850. That would leave $53,912 that could be reallocated to cash value life insurance or an annuity if they are uninsurable. The effective tax rate would be 10.76 percent. Ask this question: If you could eliminate the income tax liability on $138,850 for less than 11 percent would you do it? These examples can be very valuable for someone with $300,000 to $1,000,000 in qualified money.
4. Social Security: $30,000
Standard Deduction in 2021: $27,800
10% tax bracket: $19,900
12% tax bracket: $61,150
22% tax bracket: $91,700
Total Income: $230,550
How Much is Taxable of the $230,550? $226,050
A married couple could withdraw $200,550 of fully taxable money in addition to their $30,000 of Social Security and only pay taxes on $226,050, which would be $35,622.
$27,800 = $0
$19,900 = $1,990
$61,150 = $7,338
$91,700 = $20,174
$25,500 = $6,120
Total = $35,622
This couple can withdraw $230,550 of Social Security and fully taxable money every year for 10 years for a total of $2,305,500 and pay only $356,220 of income tax. Over a 20 year period you could withdraw $4,611,000 and pay only $712,440 ($35,622 x 20 years) in federal income taxes over 20 years. That is an effective tax rate of 15.45 percent.
If you understand example 4 (and example 5), you can have amazing conversations with customers who make large incomes and have huge amounts of qualified money. Essentially the conversation stays the same. We are turning marginal tax rates into palatable effective tax rates. Now we are using the entire 22 percent income tax bracket: That is another $91,700. If you add Social Security, the Standard Deduction and the 10, 12 and 22 percent income tax brackets, you could withdraw $230,550. Only $226,050 would be income taxable. The total tax is $35,622. If we divide $35,622 by the $230,550 the effective tax rate is 15.45 percent.
If my customer needs $100,000 to live on and pays $35,622 in income taxes that leaves $94,928 that can be reallocated to something more efficient while completely eliminating the income tax on that $94,928 forever. The cost was only 15.45 percent. Why wouldn’t everyone do that? Why aren’t we having conversations like these with EVERYONE who has qualified money? Are we beginning to realize that even people who have money do not understand the math and do not recognize the opportunity available? Shouldn’t we ask them?
5. Social Security: $30,000
Standard Deduction in 2021: $27,800
10% tax bracket: $19,900
12% tax bracket: $61,150
22% tax bracket: $91,700
24% tax bracket: $157,100
Total Income: $387,650
How Much is Taxable of the $387,605? $383,150
A married couple could withdraw $357,650 of fully taxable money in addition to their $30,000 of Social Security and only pay taxes on $383,150, which would be $75,366.
$27,800 = $0
$19,900 = $1,990
$61,150 = $7,338
$91,700 = $20,174
$157,100 = $37,704
$25,500 = $8,160
Total = $75,366
This couple can withdraw $387,650 of Social Security and fully taxable money every year for 10 years for a total of $3,876,500 and pay only $753,666 in federal income tax. If they withdrew $387,650 for 20 years, they would withdraw $7,750,000. They would only pay $1,507,320 ($75,366 x 20 years) in federal income taxes over 20 years. That is 19.44 effective tax rate.
Example 5 uses the entire 24 percent income tax bracket. That bracket taxes $157,100 of income taxed at 24 percent. The MARGINAL tax rate for this transaction would be 24 percent.
If we withdrew the $30,000 of Social Security, the Standard Deduction and the 10, 12, 22 and 24 percent income tax brackets we would withdraw $387,650. The income tax on that withdrawal is $75,366. If our customer needs $150,000 per year to live on and we add the $75,366 of taxes that must be paid, it leaves $162,284 that can be reallocated at an effective tax rate of 19.44 percent. Ask your customers if it would be worthwhile to eliminate, forever, taxes on millions of dollars at less than 20 percent. Most customers are astonished to hear that something like this is possible.
Why do I stop at 24 percent? For me the answer is that the effective tax rate remains under 20 percent. It minimizes the rate below anything they thought they would ever pay.
Additionally, I always ask Grandma and Grandpa what their children and grandchildren will do when they inherit this money. Will they take advantage of the 10-year “stretch” provision or will they take the money as quickly as possible without regard for the income tax liability even if they lose 40 or 50 percent to taxes? The grandmas and grandpas always say they would take the money. Then ask, what if you could reduce or eliminate the tax liability while you are alive, in order to preserve the majority of this money for your family? Would you do it? More often than not they are interested. They don’t want to see what they have worked their whole life for being decimated by income taxes after they die.
Numbers 6, 7, 8, 9 and 10 are a summary of the information I have shared with you thus far. Learning to use this information will become a real game changer for your career. Americans are astonished to discover they still have an opportunity to manage their income tax liability on qualified money and gains from other investments such as non-qualified annuities. What do you think they think about the agent or advisor who brings them this option? WOW!
6.
#1. Pay only $10,800 to eliminate taxes on $1,156,000 over 20 years. The effective tax rate is less than one-tenth of a percent.
#2. Pay only $101,000 to eliminate taxes on $1,554,000 over 20 years. The effective tax rate is 6.5 percent.
#3. Pay only $298,760 to eliminate taxes on $2,777,000 over 20 years. The effective tax rate is 10.76 percent.
#4. Pay only $712,440 to eliminate taxes on $4,611,000 over 20 years. The effective tax rate is 15.45 percent.
#5. Pay only $1,507,320 to eliminate taxes on $7,753,000 over 20 years. The effective tax rate is 19.44 percent.
7. The magic of the progressive tax law is that the client can control their income tax liability during a period of historically low tax rates. 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 annual premium life insurance, modified endowment contracts (MECs) or preferentially taxed products like annuities if the prospects or clients are uninsurable. 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 for people in the 0%, 10% and 12% tax brackets. Remember The Rule of 109-12. If a married couple over age 65 make less than $108,850 they are in the 12 percent ordinary income tax bracket. That puts them in the 0% long term 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:
A. No Probate (with named beneficiaries)
B. Incontestable and Private
C. Control from the grave
D. Creditor and predator protection
E. Medicaid versatility
Here is the same information but now my customer is single. This is an opportunity to move large amounts of inefficient and ineffective qualified money to better allocations with the taxes reduced or eliminated.
Single Over Age 65
(Assumes $18,000 of Annual Social Security:
This is the Average Social Security paid)
1. Social Security: $18,000
Standard Deduction in 2021: $14,250
Total Income: $32,250
How Much is Taxable of the $32,250? $0
A single person couple could withdraw $14,250 of fully taxable money in addition to their $18,000 of Social Security and pay no taxes. None of this person’s Social Security would be taxable in this example. This person could withdraw $32,250 of Social Security and fully taxable money every year for 20 years for a total of $645,000 and pay no federal tax: None!
Let’s say the client lives on $30,250 per year. You could show them that they could withdraw another $2,000 per year of fully taxable money and pay no income tax. What could you do with that additional $2,000 per year? Of course, a cash value life insurance program.
2. Social Security: $18,000
Standard Deduction in 2021: $14,250
10% tax bracket: $9,950
Total Income: $42,200
How Much is Taxable of the $42,250? $28,300
A person could withdraw $24,200 of fully taxable money in addition to their $18,000 of Social Security and only pay taxes on $28,300, which would be $1,487.
$14,250 = $0
$9,950 = $985
$4,100 = $492
Total = $1,487
This person could withdraw $42,200 of Social Security and fully taxable money every year for 20 years for a total of $844,000 and only pay $29,740 ($1,487 x 20 years) in federal income taxes over 20 years. That is 3.52 percent effective tax rate.
3. Social Security: $18,000
Standard Deduction in 2021: $14,250
10% tax bracket: $9,950
12% tax bracket: $30,575
Total Income: $72,775
How Much is Taxable of the $72,775? $70,075
This person could withdraw $54,775 of fully taxable money in addition to their $18,000 of Social Security and only pay taxes on $70,075, which would be $8,030.
$14,050 = $0
$9,950 = $995
$30,575 = $3,666
$15,300 = $3,366
Total = $8,030
This person could withdraw $72,775 of Social Security and fully taxable money every year for 20 years for a total of $1,455,500 and only pay $160,600 ($8,030 x 20 years) in federal income taxes over 20 years. That is an 11 percent effective tax rate.
4. Social Security: $18,000
Standard Deduction in 2021: $14,250
10% tax bracket: $9,950
12% tax bracket: $30,575
22% tax bracket: $45,850
Total Income: $118,625
How Much is Taxable of the $118,625? $115,925
This person could withdraw $100,625 of fully taxable money in addition to their $18,000 of Social Security and only pay taxes on $115,925, which would be $18,423.
$14,250 = $0
$9,950 = $995
$30,250 = $3,669
$45,850 = $10,087
$15,300 = $3,672
Total = $18,423
This person could withdraw $118,625 of Social Security and fully taxable money every year for 20 years for a total of $2,372,500. They would only pay $368,460 ($18,423 x 20 years) in federal income taxes over 20 years. That is a 15.53 effective tax rate.
5. Social Security: $18,000
Standard Deduction in 2021: $14,250
10% tax bracket: $9,950
12% tax bracket: $30,575
22% tax bracket: $45,850
24% tax bracket: $78,549
Total Income: $197,174
How Much is Taxable of the $197,174? $194,474
This person could withdraw $179,174 of fully taxable money in addition to their $18,000 of Social Security and only pay taxes on $194,474, which would be $38,499.
$14,250 = $0
$9,950 = $995
$30,575 = $3,664
$45,850 = $10,087
$78,549 = $18,852
$15,300 = $4,896
Total = $38,499
This person could withdraw $197,174 of Social Security and fully taxable money every year for 20 years for a total of $3,945,480. They would only pay $769,980 ($38,499 x 20 years) in federal income taxes over 20 years. That is a 19.52 effective tax rate.
Ask all of these people, “If you could eliminate taxes on huge amounts of money for tax rates of 20 percent or less, WOULD YOU? Do you want to be in control of the taxes you pay, or do you want to leave the control to the Internal Revenue Service and the government?” Americans need to understand this is available to them.
IF I WERE A NEW OR AN EXPERIENCED AGENT AND ADVISOR, I WOULD READ THIS INFORMATION COUNTLESS TIMES UNTIL THE DISCUSSION OF ITS BENEFITS WAS SECOND NATURE TO ME. I WOULD WANT TO BE SO WELL VERSED IN THE INFORMATION THAT IT WOULD BECOME INSTINCTIVE. I WOULD HEAR SOMEONE JUST MENTION A WORD AND I WOULD BE ABLE TO START A CONVERSATION WITH THEM BY ASKING THEM A FEW QUESTIONS. WHEN A PROSPECT OR CLIENT GOES THROUGH A PROCESS OF DISCOVERY WITH THIS INFORMATION, THEY FEEL LIKE THEY HAVE DISCOVERED SOMETHING NO ONE ELSE KNOWS. IT IS EXCITING TO THEM. IT INSPIRES OUR CUSTOMERS TO TAKE ACTION.
I believe that this newsletter can be the foundation of a successful career. Remember, these are learned skills. How quickly you build success is dependent upon how much you are willing to practice. It could take a month, or it could take ten years. It is up to you. This is the first day of the rest of your career. The next ten years will provide opportunities for us as insurance and financial professionals we couldn’t have even dreamed of ten years ago.
We have an abbreviated sales idea section this month because of the expanded opening. Here are some articles you can use to strengthen your sales presentations.
Idea #2: An Article That Bursts the Negative Myths about Annuities
To have a magazine like Kiplinger explain why negative things are said about annuities on the internet, and then explain why much of that information is a myth, is tremendously valuable information. This is a good third-party article.
Title: Myth Busters: Examining the Facts about Index Annuities
https://www.kiplinger.com/ (Kiplinger, December 21, 2020)
https://www.kiplinger.com/retirement/annuities/601969/myth-busters-examining-the-facts-about-index-annuities
Idea #3: The Math Necessary to Maximize Social Security
This article gives you a mathematical way to calculate the break-even point for Social Security. I carry similar articles with me into all my appointments. We are trying to mathematically clarify for our customers how to maximize this important benefit.
Title: Thinking of Claiming Social Security? Do This Simple Math First
https://www.fool.com/ (The Motley Fool, December 24, 2020)
https://www.fool.com/retirement/2020/12/24/thinking-of-claiming-social-security-do-this-simpl/
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