Be the “Quarterback Advisor”
Authored by Justin Reeves Many agents love sports analogies when talking about business – I know I do. Well, here is one that you might relate to. We have all heard to be all things to our clients. Many have tried, only some have succeeded. Still others may wonder what does this mean. Have you ever been the “Quarterback Advisor”? In football, all offensive plays run through the quarterback (QB). He doesn’t necessarily make all the plays; sometimes he hands off to the running back or throws it to the receiver. All calls from the coaches run through the QB and he is a part of everything. In most cases, the games are perceived to be won or lost due to the QB’s efforts. Let’s examine how this works in the insurance/advisor business. You want your clients to think of you every time they have a financial or business need. If they need law advice and don’t know where to turn – they call you. If they need a CPA to assist on taxes – you hope they call you. Business insurance, financial planning and the list goes on and on – do your part so that they think of you. Being the “Quarterback Advisor” means you are a connection maker. You know all the best people for the job for your client even if it isn’t you. Always strive to be the one they think of first. These are the types of qualities that go beyond just the sales part. It will pay huge dividends.
Taxation of Capital Gains and Dividends
Authored by Matt Nutzman The capital gains and dividend taxation provisions of the 2003 Tax Act (Jobs and Growth Tax Relief Reconciliation Act), scheduled to expire at the end of 2008, were extended through 2010 by the Tax Increase Prevention and Reconciliation Act of 2005 and, subsequently, through 2012 by the 2010 Tax Relief Act.Long-Term Capital Gains Tax Rates
A capital gain results when an asset is sold or exchanged for more than its cost basis. Capital gains realized on assets held for one year or less are short-term capital gains and are taxed at ordinary income tax rates. Long-term capital gains resulting from the sale or exchange or an asset held more than one year, however, receive more favorable tax treatment. In 2011, capital gains taxes were scheduled to return to the rates in effect prior to the passage of the 2003 Tax Act. As part of the 2010 Tax Relief Act, however, Congress extended the lower capital gains tax rates through 2012. For Long-Term Capital Gains Realized:| Tax Rates: |
In 2011 and 2012 |
In 2013 and later |
| Maximum Tax Rate |
15% |
20% |
| Tax Rate (10% and 15% tax brackets) |
0% |
10% |
Dividend Tax Rates
Prior to the passage of the 2003 Tax Act, dividends were taxed at ordinary income tax rates. With the passage of the 2003 Tax Act, dividends paid by a domestic or qualified foreign corporation to individual shareholders are taxed at the new lower capital gains tax rates (15% or 5%). Beginning on January 1, 2011, dividends were scheduled to again be taxed at ordinary income tax rates. The 2010 Tax Relief Act, however, extended use of the lower capital gains tax rates for dividends received by individuals through December 31, 2012. For Dividends Received by Individuals:| Tax Rates: |
In 2011 and 2012 |
In 2013 and later |
| Maximum Tax Rate |
15% |
Ordinary income tax rates |
| Tax Rate (10% and 15% tax brackets) |
0% |
Ordinary income tax rates |
Small Business Disability Coverage
Authored by Steve Knapp The small business market is a completely underserved market in terms of disability protection. As you know, many states require the business owner to carry workers compensation on their W2 employees, but not on themselves. In addition, businesses with less than 100 employees are too small to qualify for group disability coverage, so many small business owners enroll in workers compensation and leave themselves uninsured. That’s where you come in. You can offer your business owners’ clients a personal disability plan to cover their personal expenses (coverage is 24/7), a business overhead expense plan to cover the business expenses in the event of the owner’s disability, and a disability buy-out plan for corporate partnerships ……all of which are tax deductible to the business. Client approved marketing pieces are available and smart agents direct mail these pieces to small businesses in their local area and follow-up with a phone call. Need a good reason to call? In addition, you can offer your prospects a free valuation if they apply for a DI Buy-Out plan. The valuation is done by Principal Financial Group and takes approximately 1 week to complete. A proper valuation normally costs anywhere from $3,000-$10,000. Keep in mind, through Principal you can offer your clients a 20% multi-life discount in addition!