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 March 2020 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.
As you read through this month's newsletter, share the ideas that resonate most with you in the comments - do any of the stats or facts in the sales ideas surprise you? And how about that "mathematical genius" formula in the first sales idea? Wow!
Reprinted with the author's permission.
No time to read? Watch our video overview:
March 2020 – 7 Ideas and Views Newsletter by Van Mueller
Before we start with this month's newsletter, I would like to review the last four newsletters with you. The November, December, January and February newsletters were designed to be used together. They provide a real foundation for anyone who would like to build a successful career as an insurance and financial professional. If any agent, whether new or experienced would incorporate the ideas and questions contained in those four newsletters, they would see a dramatic increase in appointments and even a more dramatic increase in successful outcomes. It requires some repetition. I would recommend reading those four newsletters at least ten times. Why? Because of the way people read. Distractions occur or your mind wanders a little while you are reading the information. I would be willing to bet you would discover something that you hadn't previously focused on all ten times you read those four newsletters. Also, you don't just want to know the information in those newsletters, you really want to know the information in those newsletters. The ONLY way to accomplish that is with repetition. You will find the rewards will be truly amazing. Let's take a brief review of the four newsletters.
November Newsletter
(Need a refresher? Click here to review November's newsletter.)
This newsletter shared two important websites. www.usdebtclock.org and www.truthinaccounting.org. These two websites are vital to developing questions about all the challenges governments will face in providing benefits for their constituents.
Those challenges include higher taxes and lower benefits and borrowing more money or a combination of all of those issues. Asking our prospects and customers how those issues will impact their income tax responsibility and their financial and retirement futures provides wonderful opportunities to have discussions with clients about things that matter and additionally will inspire them to take action. These are two of my most important third-party tools because they are authoritative and easy to understand. Please review all the questions that were shared and see if you can develop a few of your own as you review these two very important websites. They Will Make You A Lot Of Money and You Will Help A Lot Of People.
Please review all the questions that were shared and see if you can develop a few of your own as you review these two very important websites. They Will Make You A Lot Of Money and You Will Help A Lot Of People.
December Newsletter
(Need a refresher? Click here to review December's newsletter.)
This newsletter also provided some additional websites including two that had they not been available to me, I would not be able to achieve the success I've had: Wage Statistics and ssa.gov.
The only way I have been able to get Wage Statistics is by Googling, “Wage Statistics for 2016” which will get you to the proper link. Or click on this link - https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2016.
There may be another way, but I personally have not found it. This is the most amazing tool for showing the rich, the middle-class and even the poor that their income and payroll taxes will likely have to be increased in the future. What if there was a way to reduce or eliminate the impact of the information? When would you want to take action? Before or after they increase your taxes?
With 74 million Baby Boomers and 66 million Generation Xers turning 65 over the next 25 years, I believe it is obvious why you should become comfortable with the Social Security website ssa.gov. Helping our 140 million Americans make wise decisions when it comes to choosing the most beneficial starting date to receive benefits is vitally important and will allow you to stand out as an important contributor to our customers' successful retirements. Having knowledge of how to effectively use these websites is a key to a successful and beneficial career.
Have you bookmarked these sites yet? Which one has been most helpful in client meetings?
Sound off - tell us in the comments!
January Newsletter
(Need a refresher? Click here to review January's newsletter.)
This is my favorite newsletter every year. I update the sales ideas annually, so they reflect the current tax laws in the ideas. Essentially, the January newsletter every year shares how to use the progressive income tax laws of the United States to transfer inefficient and ineffective fully taxable IRA's, 401(k)'s, pensions and gains on tax deferred annuities by showing prospects, clients and customers the difference between marginal and effective tax rates and how to use them to their benefit. The January newsletter is the foundation of my business. It has always been obvious that success in our business has always been predicated on helping our prospects and clients “find the money” to accomplish their protection, financial and retirement goals. With income taxes currently at a historically low level and even with the prospect of them returning to what they were before this current tax law, the progressive nature of our tax laws allows us to still reduce marginal tax rates to dramatically lower effective tax rates. This is a must-learn newsletter if you want to really help a lot of the American people and make a lot of money doing it. This should be at the very least, the foundation of the practice of everyone in our industry. This is Top of the Table qualification information. Take advantage of it.
This is a must-learn newsletter if you want to really help a lot of the American people and make a lot of money doing it. This should be at the very least, the foundation of the practice of everyone in our industry. This is Top of the Table qualification information. Take advantage of it.
February Newsletter
(Need a refresher? Click here to review February's newsletter.)
The information in this newsletter usually is not provided by the government until the middle of January but is beneficially used with the information in the November, December and January newsletters. It is powerful because it is official. Going to irs.gov and printing out the 1040 instructions is the last pieces of the puzzle. You must have a basic understanding of our income tax laws in the United States to have the amazing and impactful career you desire. When you get and then read all 108 pages of the 1040 instructions you will have a basic understanding of income tax law. Then if you focus on pages 28, 30, 33, 103 and 104, those will be the pages that you will use over and over to illustrate the difference between marginal and effective income tax rates. It will make you a very powerful and very beneficial insurance and financial professional.
Will you please consider this question? If you could read these four newsletters and practice the questions and ideas they impart, and in between 30 and 60 days you could double, triple or even quadruple your production, would you read and practice those newsletters? It's up to you. The information is there and our governments and the world's governments for that matter are offering you the opportunity of a lifetime if you understand and USE the information in those four newsletters. Don't Miss Your Opportunity
If you could read these four newsletters and practice the questions and ideas they impart, and in between 30 and 60 days you could double, triple or even quadruple your production, would you read and practice those newsletters?
Now, I would like to give you “10 Reasons Why This Is The Greatest Time Ever To Be In Our Business.”
This is the greatest time ever to be in our business, yet most insurance and financial professionals have not realized it. Most have not achieved the success they yearn for. It is absolutely important to understand that the biggest sale you will ever make in your career is to yourself. You have to believe in something with all your heart before you can truly see it, and you must be able to see it before you will be able to do it. Without total belief in what you do, it is difficult or even impossible to inspire other people to take action.
Here are ten reasons why, without a doubt, this is the greatest time ever to be an insurance and financial professional.
1. Enormous Opportunity
The opportunities available to our prospects and clients are greater than ever. Our clients NEVER buy because of bad news. They actually deny or completely ignore bad news. Bad news should only be used to get their attention. Even though our prospects and clients ignore bad news, they will literally race towards opportunity. Ask this question, “If I could show you a way to never lose any money ever again and then put you in a position to take advantage of financial opportunities, would you want to develop a strategy that would accomplish that?" They Do!
2. Broken Promises
Governments will not be able to keep their retirement and healthcare promises. The Federal Government, states, counties, cities and even towns are already defaulting on their promises to retirees. What happens when the rest of the Baby Boomers and all of the Generation Xers retire? Our opportunity lies in our ability to show that we can replace those lost benefits. Everyone, even the rich will need our guidance.
Our opportunity lies in our ability to show that we can replace those lost benefits. Everyone, even the rich will need our guidance.
3. Lost Benefits
Corporations and Unions will face the same challenges as government, and they will cut benefits for workers. We must help people replace those lost benefits.
4. Higher Taxes
We are the only people who can provide strategies that allow our prospects and clients to pay their taxes now, when they are historically low, and build a financial and retirement nest egg that can be accessed without taxes in the future.
This money then will also provide a lifetime of tax-free compounding.
We are the only people who can provide strategies that allow our prospects and clients to pay their taxes now, when they are historically low, and build a financial and retirement nest egg that can be accessed without taxes in the future.
5. Life Insurance
Cash value life insurance is essential to a quality financial plan. With flexibility to provide protection benefits, exciting growth opportunities, reduced or totally eliminated income tax liability and retirement income streams, this has become a very important asset class. It is pennies that can buy dollars, and one dollar that can do the work of many dollars.
6. Leverage
Our industry is able to use leverage to provide benefits with the same dollar for critical illness and long-term care benefits using life insurance and annuities. With serious inflation ahead of us, leverage is vital to offset the damage to purchasing power caused by inflation.
7. Guaranteed Lifetime Income
We have the tools to provide income that Baby Boomers and Generation Xers cannot outlive. With our products, even if they run out of money, they will never run out of income.
"Even if they run out of money, they will never run out of income."
That might be our favorite quote from this issue - what's yours?
8. Trained Professionals
Our industry now has the finest trained professionals ever. We now have strategies available to solve any challenges our prospects and clients will face. Insurance and financial professional are so valuable in our current circumstances. They provide certainty where uncertainty exists.
Insurance and financial professional are so valuable in our current circumstances. They provide certainty where uncertainty exists.
9. Compliance
Yes compliance! The more oversight we have, the safer our prospects and clients feel when they deal with us.
10. Huge Wealth Transfer
The greatest savings generation, our parents, is about to transfer its wealth to the worst savers, Baby Boomers. Our competition is not each other – we can't even get to everyone we need to help. Our competition is government, hospitals and nursing homes. We must get to the American people before these entities do. We must show Americans how to keep their money in their family.
One final thing before we get started with the 7 ideas. The bond market is sending serious warning signals about the economy. I want to list the current yields as of February 21, 2020 for U.S. Government bonds. Take a look at this. This is a serious example of an inverted yield curve.
3-Month Yield 1.52
6-Month Yield 1.48
12-Month Yield 1.39
2-Year Yield 1.34
5-Year Yield 1.38
10-Year Yield 1.50
30-Year Yield 1.91
Notice that the short-term interest rates are higher than the long-term interest rates? You get a higher yield on a 3-Month bond than a 10-Year bond. Also, the 30-Year Yield is a RECORD low yield. Can you imagine asking a prospect or client if they would like to invest with you and that you were offering them a 1.91 percent yield on a 30-Year U.S. Government bond? Most people would tell you to take a hike. However, many buyers are lined up for these products because it is felt that they would provide a better and safer return because other investments will do worse; like the stock market.
This is another warning sign. Stay aware of these interest rate yields. If this stays this way for a little while, we will be in for an interesting and exciting economy. Stay Tuned!
Let's get started with the seven ideas.
Idea #1: The Accounting Rules of 72 and 115
If you divide the interest rate into 72 it will approximate how many years it takes money to double. If you divide the interest rate into 115 it will approximate how many years it takes money to triple.
Using the rule of 72, if you earn a quarter of a percent on a current six-month CD it would take your money 288 years to double. If you earn 2.5 percent in an annuity it would only take approximately 30 years. Ask your client which they would rather have.
These rules are also effective for explaining the impact of inflation on our customers. An easy way to explain inflation's damage to purchasing power is sharing the rules of 72 and 115. Rules used to explain compounding can be used to explain inflation.
If you divide the inflation rate into 72 it will be revealed how many years before you will need to double your income to maintain your standard of living. Using the rule of 115 shows how many years before you will need three times as much income to maintain your current living standard. For example, when I explain inflation to a 65-year-old couple, I ask if they realize that 3 percent inflation divided into 72 means that in 24 years, or age 89, they will have to double their income to maintain their current standard of living. At 6 percent inflation that would happen soon. They would need to double their income by age 77. Said differently, depending on the inflation rate at age 77 or age 89, their current income would only buy half of what their income buys at age 65.
I use the rule of 115 with my younger clients, with astonishing results. If my client is 30 years old and currently lives on $60,000 per year and you divide 3 percent inflation into 115, then she will need $180,000 per year at age 68 just to maintain her current standard of living.
Two more quick ideas. You can use these rules to show the damage caused by high interest rate debt and who benefits. If your credit card interest rate is 18 percent, it only takes the credit card company 4 years to double their money. If you miss a payment and the interest rate climbs to 27 percent, it only takes around two and one-half years.
Finally, these rules can be used to understand just how much the market is manipulated. If the Dow Jones Industrial Average was 10,000 in the year 2000 and rounding up, the market is at 30,000 that means it took 20 years for the market to triple. If you divide 115 by 20 you will determine mathematically that the market averaged around 5.75 percent. If you take the Dow's average in September of 2007 it was 14,200. Rounding down to 28,400 currently it has taken the market 12 ½ years to double. If I use the rule of 72 divided by 12.5, it again comes out to around 5.75 percent. Interesting!
Please learn to use these rules as they make you look like a mathematical genius.
Title: This simple formula tells you how long it will take for your money to double – While you sit back and relax
www.msn.com (MSN, January 29, 2020)
https://www.msn.com/en-us/money/savingandinvesting/this-simple-formula-tells-you-how-long-it-will-take-for-your-money-to-double-%E2%80%94-while-you-sit-back-and-relax/ar-BBZroDe
Title: Retirement: The Rule Of 72, And The "Income Method"
https://seekingalpha.com/ (Seeking Alpha, January 26, 2020)
https://seekingalpha.com/article/4266668-rule-of-72-income-method
Idea #7: What Do All These Low and Negative Interest Rates Mean?
Many, many articles are implying that we could experience low or even negative rates for a very long time. Why is this happening? What does it mean to safe investors and savers? How will enough income be generated to provide a quality retirement? Would you invest in something if it promised to give you less back in the future? Did you know there is currently $15 trillion of negative interest rates on planet earth? This article explains why someone would invest in something like that. The article makes the case that we are already getting negative returns at the lower interest rates. After you read this article, I would use whatever search engine you use to get additional information about negative interest rates. They will be coming soon.
Title: What Low and Negative Interest Rates Mean For Investors
https://www6.royalbank.com/ (RBC, January 28, 2020)
https://www6.royalbank.com/en/di/hubs/investing-academy/article/what-low-and-negative-interest-rates-mean-for-investors/k57h3jrv
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.
How about that "mathematical genius" formula in the first sales idea? And that list of 10 reasons why it's a great time to be a financial advisor! We really enjoyed this issue - did you?
Which reason motivates you the most? Which of the websites Van shared have you found helpful? Share your expertise in the comments!
