Annuity Marketing Idea

[insuranceexec]

Maybe I'm missing something in the first link of what seems like a good marketing idea.

How many dumb accountants are there out there? I know there must be some, because I know a few. However, annuity growth would not normally even get a 1099. So, under what circumstances would someone report non-reportable income from an annuity?

It seems to me the success of this would largely depend on how happy someone was after they first met with the CPA and that a mistake was indeed made on the annuity income. "Oh boy, I'm getting a refund and I'm meeting with an annuity expert."

Very good Charpress you have found another moving part. Every year countless companies mess up and accidentally send out 1099's to the client, even though no money has been withdrawn. There are many "tax preparers" who do not understand these things and obviously file things wrong. Again I am playing on the fact that most annuity companies do not process their own tax forms to the clients, they hire this out to a 3rd party admin. With all of the changes every year that take place in the tax code; It is all these 3rd party admins can do just to get them processed in time. Let alone make sure they are correct.

A good friend of mine who happens to be Regional Auitor for the IRS once told me something that I will share with everyone: "If you think hiring a CPA is expensive, first hire H&R Block."

As far as the client being excited about meeting with an accountant and an annuity expert; I have yet to see somebody fall out of their chair or anything, but the reception has been well received. Again it comes down to how well you sell yourself and your services. Another point out of the 280 or so calls only 128 agreed to meet with the accountant. Clearly showing that not everybody is going to be intrested.


Very good point Charpress; thanks for the post.

 

[Freddie]

Thanks for the follow up answers and the neat marketing idea InsuranceExec. I may PM you.

 

[padthaiforlunch]

Oh, I've seen it. Think H&R Block. Then again, think of the basic premise of Missed Fortune strategies - if the CPA doesn't understand the tax laws, their name is still on the return, and they get to represent the client before the IRS. When it comes to IRAs, think IRDs. 'Nuf said!

So IRD may be unnecessarily taxed? Would this happen when the annuity had a death benefit equal to the CV?

 

[insuranceexec]

So IRD may be unnecessarily taxed? Would this happen when the annuity had a death benefit equal to the CV?

In some cases; if the insurance company filed the DB and coded the IRC incorrectly. This happens more than people think.

 

[KConway]

I do not think this public forum is the place for such an AD, as I have a patent on it. I did however want to share an idea that somebody could take and possibly alter to their own area. I do provide this to my agents.

No problem, understood.

Thanks for sharing the idea.

 

[insuranceexec]

No problem, understood.

Thanks for sharing the idea.

You are very welcome. What type of marketing are you doing right now?

 

[cloisbarton]

Here is Another Annuity Marketing Idea​

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The product can be changed out​

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This is just the concept that was shared with me by Legacy so to be fair I left their products in the concept.
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Plus, you only have to 2010 to take advantage of this law, which means only two years left.
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TIPRA LAW​

I spoke of a new body of tax law called TIPRA. This allows your clients in the 10 and 15% tax bracket to enjoy a zero percent capital gains tax rate for the next three years. Clients with taxable income up to $63k are eligible for this great benefit. This means that we can help them out several times over the next three years. First, please note that selling their entire long term capital gain portfolio may mess up the deal if it done in one year as the gain may push them out of the 15% tax bracket and cause those capital gains to be taxed at 15%. While that isnt the end of the world depending on their situation it may be better to sell some in 2008, some in 2009, and some in 2010.
In fact if our clients have taxable income of $42k and long term capital gain in their portfolio of $60,000- {the portfolio has a balance of $160k}, we can help them as follows:
January, 2008 sell $20,000 in long term capital gains at zero percent long term capital gain tax rate. We can put $20k and $33k of cost basis into the PremierMark plus and credit the client a 7% bonus making a balance of $56,710.
In January, 2009 sell $20k in long term capital gains again at zero percent long term capital gains tax rate. Put another $20k and $33k of cost basis into the same PremierMark plus contract and use the 7% bonus again for another $56,710.
In January, 2010 sell $20k in long term capital gains again at zero percent long term capital gains tax rate. Put another $20k and $33k of cost basis into the same PremierMark plus contract and use the 7% bonus again for another $56,710.
Over the next three years you help the client completely eliminate their long term capital gains on their entire portfolio. Their asset is now safe- worth $180,000 (at 6%) growth and tax deferred. Not to mention possibly creditor proof, can avoid probate, and all that great stuff. This is the product with an optional beneficiary rider to offset 28% of the taxable gain on the contract- effectively a 28% back end bonus on all of their gains.
You won too- by getting first year commission on all three deposits, you made $12, 720 in commissions earned Legacy Rewards points, and probably qualified for an Incentive Trip!, and you only had to write one application. Better yet there is only six years of surrender left on the first deposit and you can then go earn another commission with this same money.

 

[padthaiforlunch]

So how is it free from capital gains tax? What are the triggers that must be avoided to enjoy 0% tax?

 

[Vanbret]

Interesting. One problem I have is with over-estimating people, especially people that are supposed to have some level of expertise. I certainly don't over-estimate the American voter any more.

On the H&R block thing, I definitely get your point. Locally there is almost nothing involved in licensing to become a "tax preparer."

Also, I wonder how many people screw themselves with TurboTax and the like? Maybe that should be a line in the ad: "Are computer tax preparing programs costing you tax dollars?"

I like the spinoff (focusing on computer tax programs).

 

[joeblow]

InsuranceExec - thanks for posting this one. I haven't been around here long, but this is one of the more worthwhile ideas I've seen. Thank you for sharing.