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Doesn't L'Gilmore have a crafty response or is that a craft beer?
How Do You Sell Annuities
- Thread starter padthaiforlunch
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Doesn't L'Gilmore have a crafty response or is that a craft beer?
- 2,584
Or the Beastie Boys, "she's crafty". lol
- 2,038
A common misconception is that you need to reach a threshold to save/reduce taxes.
For example:
The thresholds for married are 32,000 and 44,000.
If provisional income (married) simply goes from 55 to 45 and doesn't cross any threshold, they still reduced their SS income subject to tax from 15,350 to 6,850, as far less are subject to over 85%.
That's goal #1, but still, the ability to reduce taxes is only an added benefit at that point..
The biggest challenge of course is simply seeing enough tax returns.
- 2,584
Not sure what you mean, "an added benefit at that point" ?
That is what I found. Quite a few don't want to show tax returns or even share personal info for fact finding off of this.
Then there is the whole my CPA does this people.
Except that he/she doesn't...that's why they're paying taxes that they don't need to...
I do a decent amount of retirement plans...I'm shocked at the amount of highly credentialed accountants that do almost zero tax planning for their clients. Many blanketly recommend SEPs/401ks when their clients could be deferring A LOT more income.
KRobby is spot on with this approach.
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- 2,584
I agree. I guess getting good at overcoming that objection is important.
I found that most don't know if they are paying taxes or not. But of course their CPA/ tax person handles that.
I have seen the same thing. Having a process that gets them to open up is the challenge.
The process works like this:
You: If you could defer more of your taxable income, would you want to?
Client: Of course.
You: Ok, how much do you want to defer?
Client: As much as possible.
You: Ok, we can probably defer around 250k depending on your business structure and income.
Client: Hold on, I can't do that much...
You: Then how much are we setting you up for?
And you're done. From there, the client should be out of the picture. I will immediately ask to speak with their accountant and possibly their attorney. Then as we move forward I will ask these COIs for referrals...rinse, repeat.
You will have to resell the client at implementation. You might want to partner with an RIA/Financial Advisor for this type of business but we normally build a nice life sale into the DB part of the plan.
I know that I went off on a tangent but my point is that accountants don't always do proactive planning and that as an agent, you really have a great opportunity to take control of the relationship.
- 2,584
Is this off of a Direct mail lead on s.s. ?
You mentioned business structure & attorney.
I haven't found them to be quite that type of affluent prospect. Although they act like it, lol.
No, I'm sorry. Like I said, I went off on a tangent. I just get frustrated when I hear good agents getting tripped up by the "CPA" issue.
I know that they (accountants) love to block our business ideas, mainly because they're not in their wheelhouse.
The SS concept is sound though and you can take a similar approach. Use it as an opportunity to speak with their accountant. You'll likely get a lot of resistance but for those that agree, you've not only made a likely sale but you've met another (and probably the best) COI.
- 2,038
What I mean is that even though the task at hand for these is to find the tax reduction, the ironic part is if you get to the point that you can determine you can't help with that (or anything significantly), that means you have plenty of information to position the direction. If you can, all the better. Doesn't mean a sale or anything, but you're certainly in position to find out.
Or maybe you get all that and the wording was confusing
Meant: Added benefit = not required but helps in making the sale/client.
Absolutely.
