Beating a Sales Slump

Authored by Gary Peterson After the Holidays, it’s easy to find yourself looking for business because your clients are giving you excuses. Does this sound familiar?
  • You hear a lot more “No’s”.
  • Cases that seemed a sure bet don’t happen.
  • A nice application is withdrawn or declined.
  • Your most recent referral stands you up.
  • Nothing seems to go right.
That is when it is easy to lose confidence. But, the best of the best have all experienced slumps and survived to let us know the secrets to getting back on track. I have attached a great article that describes the keys to breaking out of a slump – or preventing one from starting. Beating a Sales Slump

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
Planning Notes: * The individual shareholder must own the dividend-paying stock for at least 60 days in the 120-day day period surrounding the ex-dividend date to receive the favorable tax rate. * Generally speaking, the 15% top rate makes dividend-paying stocks more attractive from a tax standpoint than investments that pay out ordinary income, such as REITs and taxable bonds. Tax treatment, however, should not be the sole determining factor in investment selection. If you would like additional information on this topic, please call my office (800-397-9999).

Document Your Appointment

Authored by David Corwin I read an article recently that caused me to think about a few things.  When Insurance Professionals meet with their clients and sell annuities and or life policies, very few of them will document or take extra time to make notes about the appointment.  It is critical to do so due to this litigious society we find ourselves in.  It isn’t the client that you have to worry about; it is the beneficiaries and/or loved ones. This is especially true for older clients that may suffer from Alzheimer’s disease; they may not remember what they bought, much less their own name.  You will be questioned as to their state of mind during the sale and if you don’t have an answer, then there will undoubtedly be ramifications including fines and or jail time. There have been discussions around the country about whether producers should require their prospective clients to take a mental exam before buying a policy. Document everything.  Document statements made by the client during the sales interview.  Those comments in the context of the sales process will help attorneys and courts review the conditions under which the sale was made.  This will ultimately be a good habit to get into not only for the possible lawsuit that might come your way, but also can be a reminder for possible future sales.

Annuity Suitability

Authored by Jim Guynan First of all, an annuity should be considered as a longer-term investment. If, for example, your objective is to save for retirement and you are already contributing the maximum to an IRA and/or employer-sponsored retirement plan, an annuity might be right for you. But which type of annuity? The answer to that question depends primarily on your investment objectives and risk tolerance. Fixed interest annuities may be best suited for individuals who: -Prefer to rely on fixed rates of return -Focus on preservation of assets -Want protection from market volatility -Prefer to delegate investment decisions and risks to the insurance company -Understand that a fixed rate of return may not provide a good hedge against inflation Variable annuities may be best suited for individuals who: -Prefer to invest in equities -Want to make their own investment decisions -Understand that assets can decline in value -Are willing to assume the risk of loss of principal in exchange for the possibility of greater asset growth and a stronger hedge against inflation Indexed annuities may be best suited for individuals who: -Are adverse to risk -Understand that a rate of return linked to stock market performance provides the potential   for higher returns than fixed interest investments, together with the risk of losing money if the issuing company does not guarantee 100% of the principal and no index-linked interest is credited, or if the indexed annuity is surrendered while a surrender charge is in effect -Prefer to delegate investment decisions to others -Want less market risk than with a variable annuity