tricks of the trade: tips from an insurance agent · tricks of the trade: tips from an insurance...

BY BILL BROICH

TRICKS OF THE TRADE: TIPS FROM AN INSURANCE AGENT

79 TIPS THAT WILL INCREASE YOUR PRODUCTION AND YOUR BOTTOM LINE

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The enclosed tips are worth a fortune to you and to your practice. Just by

mastering only one or two will allow you to increase your production and

your bottom line.

These tips were not dreamed up by a “marketing” specialist at the home

office but are used in my everyday practice of selling annuities.

I would like to share with you my methods of selling annuities that has

enabled me to sell $106 million dollars in annuities over the years.

I hope they provide as much success to you as they have me.

Bill Broich

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Table of Contents:

Tip #1: Manage Your Time for Maximum Production………..…..……...…….Page 10

Use These Rules To Improve Your Productivity.

Tip #2: Envelope Color. Don’t Use White!............................................. Page 11

How to Improve Your Envelope Opening Ratio.

Tip #3: Investments or Deposits, Learn This Tip………………....……...........Page 12

Learn How to Explain the Difference.

Tip #4: Understanding the Needs of the Prospect…….……......................Page 12

What the Client Really Wants and Does Not Want.

Tip #5: The Power of Compounding…………………………..….......................Page 13

Tax Deferred is Tax Diminished

Tip #6: Ten Little Indians……………………………………….…............................Page 15

Give Your IRA Clients the Highest Possible Yield With No Risk.

Tip #7: The Recapture Sale……………………………………………………………......Page 16

Another Way to Explain Tax Deferral.

Tip #8: Colors, Hedge Your Bets…………………………………………….……...…..Page 17

What Colors to Wear and What Colors to Avoid.

Tip #9: Use Time Horizons to Position Thinking About Annuities……….Page 18

Looking Longer has Many More Options.

Tip #10: Invite a Long Term Care Salesman to a Meeting………………......Page 18

An opportunity to Meet With Prospects That Really Want to see you.

Tip #11: Settlement Option “D”………………....…………………………….........Page 19

Learn How contracts can be Changed in the Future.

Tip #12: Natalie Wood and Probate…….……...........................................Page 20

A Fresh Way to Explain the Benefits of Annuities

Tip #13: FDR: His Take on History Works to This Day..............................Page 20

The Only Thing Worse Than Death is Outliving Your Money


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Tip #14 Municipal Bonds—Tax Free?….....................................................Page 21

Learn About the Tax Liability on Municipal Bonds.

Tip #15: The “You” Close………………………………………………………...…………….Page 22

Place the Prospect in the Equation.

Tip #16: Know Who You Really Are………………………………….……..…………...Page 22

Never be Ashamed of Your Chosen Profession.

Tip #17: Write a Press Release………………………………………….……..…...……..Page 24

How to Find Cheap and Sometimes Free Publicity.

Tip #18: Sales Tips from the Girl Scouts…………………………………..…….….....Page 25

Simple and Direct Advice From a Beloved Organization

Tip #19: Internet Marketing Tips…….………………………………………..………...Page 26

Learn How to Get Your Domain Name out There.

Tip #20: Shaking Hands…………………………………………………………..…………...Page 27

Four Rules to Help you Make a Good First Impression

Tip #21: Quit Jumping to the Next Hot Deal………………………...…....…......Page 28

How to Outlive the Honeymoon Period.

Tip #22: Get a Coach…….……...................................................................Page 29

It Can Be Lonely Out There

Tip #23: A Guarantee to Increase Your Sales...........................................Page 30

Give It to Get It

Tip #24: Knowledge is Power..................................................................Page 31

Gain a New Confidence by Learning Something New.

Tip #25: A Happy Wife is a Happy Life……………………………………..………….Page 32

Don’t Let Worry Overflow Into Your Home


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Tip #26: Promissory Notes...Big Mistake………………………………………….......Page 33

Protect Your Client—Keep Them Informed.

Tip #27: Taxes Can Be Imposed on Immediate Annuities……………………......Page 34

Know Your State’s Tax Rules

Tip #28: Assets “Held Outside” Secret……………………………………...…...….……Page 35

How to Transfer Money From a Broker.

Tip #29: How to Get Higher Immediate Annuity Commission……………....…Page 36

Explaining How to Control Future Unknowns.

Tip #30: Use the Prospectus to Make the Sale…………………………………….....Page 37

Evaluate the Risk Tolerance of the Client.

Tip #31: How to Get Paid in 7 Days on IRA Transfers………...……………........Page 39

Learn How to Use a Small Technicality to Get Paid Faster.

Tip #32: Understanding Bonds….…………………………………………....................Page 40

Discover the Numerous Sources for Bond Ratings.

Tip #33: Don’t Let Stock Brokers Intimidate You........................................Page 42

Learn How to Use Public Information to Check on a Broker.

Tip #34: Never Use a Postage Meter.........................................................Page 43

Increase Your Open Rates.

Tip #35: Banks and Brokers Fees…………………………………………….…….………..Page 44

Help Your Prospects Understand What Fees They are Paying.

Tip #36: Will Rogers—Your Best Friend?..................................................Page 45

A Solid Relationship Builder for the Senior Market.

Tip #37: Tape Record Your Children to Increase Appointments……………...Page 46

How to Humanize Yourself When you Make Your Calls.


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Tip #38: Bank CDs—Is There an Advantage to Moving the Money……....….Page 46

Surrender Penalties are Tax Deductible.

Tip #39: Use the Term Tax Preparer—Not CPA…………………………...…….....….Page 47

Don’t Assume Your Prospect Uses a CPA.

Tip #40: The Pitch! Use This for A Relationship Builder……………….…….…...Page 47

How to Point out What you Have to Offer.

Tip #41: Share the Story of Annuities With Your Clients..………….……........Page 49

Learn the History of Annuities.

Tip #42: Hire a Publicist….……...................................................................Page 51

How to Become the Local Annuity Specialist

Tip #43: Gender Selling, Is There a Different Approach?...........................Page 52

Gender Separation can Provide you With an Edge.

Tip #44: The Easiest Sale in The World: Annuities………………....................Page 54

How to Develop a Marketing Plan to Increase Your Leads.

Tip #45: Control Your Own Destiny……………………………………………….……….Page 55

Do Not Become a Slave to Your FMO.

Tip #46: Great Secret to Annuity Sales....................................................Page 57

Using Mortgage Protection Insurance Leads.

Tip #47: Financial Planners...Ask the Question!....………………………………..Page 58

Learn the Two Catagories of Financial Planners

Tip #48: Asset Protection With a Medicaid Trust…………………………………...Page 59

How to Protect Assets in the Event of a Long Term Care Situation.

Tip #49: Memorize These Annuity Benefits.…………………………………………..1

Ten Benefits of an Annuity,


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Tip #50: Expose the Fees on 401(k)’s…………………………………………….…....…Page 63

Kiplinger Magazine is a Solid Source for Information.

Tip #51: FDIC Insurance……………………………………………………………...….......Page 64

How the FDIC Brochure can Help You to Sell Annuities.

Tip #52: Another Option for Your Prospect’s “In Force” Annuity………......Page 66

How to Use the 1035 Exchange.

Tip #53: The Best Target Market in the World for Annuity Sales……........Page 67

Sell Annuities to Prospects With Limited Assets.

Tip #54: Use The Formula Your Prospects Will Understand....................Page 68

A Workable Approach to Selling Index Fixed Annuities.

Tip #55: Know How to Name A Beneficiary………………………………...……...Page 69

The Revocable Living Trust as an Owner and Beneficiary.

Tip #56: Bonds Can Help Annuity Sales.................................................0

Using Morningstar or Moody’s Make the Sale for You.

Tip #57: Generation Skipping IRA...……………………………………………..……..Page 73

Learn About the “Step Up” in Tax Basis.

Tip #58: Negative Media Advertising………………………………………….....…..Page 74

Create Fear Uncertainty and Doubt.

Tip # 59: Variable Annuities are the Target Market……………………..……..Page 76

Learn These Points to be Able to Inform Your Prospects

Tip #60: Use Golf as an Example to Understand Bonds.……………..………..Page 77

Bond Terms Worth Learning.

Tip #61: The “Leave Behind” Book…………………………….…………..…………….Page 79

This Form of Inexpensive Advertising Will Pay High Dividends.


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Tip #62: How to Explain Indexed Annuities……………………………………...…....0

Sell or Listen How to Do Both.

Tip #63: The Back Door Escape Hatch.......................................................Page 81

Help Your Prospects Understand Their Bond Holdings.

Tip #64: Use This Idea to Interest Prospects in Annuities..........................Page 82

The “Swiss Annuity”.

Tip #65: The Concept of Selling Risk is Safety and Security….………....…....Page 84

Sell Safety By Selling Risk.

Tip #66: Passive Marketing Income.........................................................Page 85

Compete for “Agent of Record” on Policies.

Tip #67: Warehoused Money: A Great Source for Annuities..……….……….Page 87

How to Identify What Money is Appropriate for an Annuity..

Tip #68: Get Back to the Basics……………………………………………...………..…..Page 89

Keep it Simple.

Tip #69: Confidentiality is a Must in our Business………………...…………….…Page 90

Privacy Will Always Win.

Tip #70: Send a Monthly Newsletter Focused on Health Information….…Page 91

Prospects Will Find it Helpful and Informational.

Tip #71: Write a Book or Use a Ghost Writer to Show Yourself Off….……Page 91

When you Give Your Prospect a Book, You are Elevated in Their Eyes.

Tip #72: How to Get Referrals From Attorneys........................................Page 92

Use these tips to Crack Into This Market.

Tip #73: Using US Treasury Bond to Help Sell Annuities..........................Page 94

Learn and Understand about US Treasury Bonds .


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Tip #74: Use the State Guarantee Fund to Sell Annuities...........................5

A Piece of Information to explain at Delivery.

Tip #75: Brokerage Statements—Sitting Ducks?……………………………….….....Page 96

How to Find Management Fees.

Tip #76: High Yield Bonds Mutual Funds...................................................Page 97

Use Morningstar to Illustrate Their Risk Factor.

Tip #77: Quantum Annuities—Added Benefits ..……………………..……….…....Page 98

The Power of Tax Deferral.

Tip #78: The Biggest Long Term Care Selling Secret…...……………………….....Page 99

Sell More LTC by Telling Your Prospect They Don’t Need it.

Tip #79: Single Premium Whole Life.………………………………………………….....Page 100

Huge Benefits for Safe Money and Future Benefits.


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The enclosed tips are worth a fortune to you and to your practice. Just by mastering only

one or two will allow you to increase your production and your

bottom line.

I never give legal or tax advice, I only provide information. I

always tell people exactly what I am…I am an annuity salesman.

I hope these tips provide as much success to you as they have to

me.

2 Hours, That is All They Get…This Is How I Do It

I know it is hard to believe but two hours is all the time I will give any prospect. Two

hours total. Not at one time but total for the whole relationship!

I have a 6 minute rule also and here it is. When a new prospect comes to see me I will

have a 6 minute time limit. In 6 minutes I can tell if I am going to extend the relationship. I

do so by not beating around the bush. I get right to the issue at heart, do my products make

sense to them and benefit their lives.

My assistant knows that after the 6 minutes if I am still in my office I will be working on a

fact finder. I will normally use about 40 minutes of time for the fact finder.

When they return for the report (close) I will begin immediately wasting no time. I

budget about 6 minutes for the close because the sale has already been made by

completing the fact finder. When they decide to buy I will have my assistant come in to do

the paperwork. I do this to begin transferring the relationship to her and away from me.

Here is a great little “secret.” Always forget to ask them something such as SS number so

your assistant can call back the next day. If there is any buyer’s remorse it will be here and

she can help patch it up. Plus it helps complete the transfer of the relationship to my

assistant and away from me.

Once the funds are transferred and the annuity is ready for delivery, I will again budget 6

minutes for the delivery. When they come in I get right to it and get it delivered.

By managing my time and not overstepping my rules I have about an hour left to give

them over the next few years. I have always used this time management and it has worked

for me.


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A Few Other Points:

I do not go to lunch, dinner or any other social event with my clients.

I do not play golf with them.

I do not do policy reviews.

If a client calls me they are really giving me an

opportunity to change our relationship to a sales

situation. If I call them they will be in the reactive

position and it will mean a lot of effort for not many

sales.

I know this approach is different and may not work for

everyone but it has for me. It has allowed me to manage

my time and to make my efforts more pointed to sales.

Manage Your Time For Maximum Production

Envelope Color. Don’t Use White! Important Tip.

Communication is essential in our business. We use all sorts of ways to do so with the

hope that being effective and growing relationships. Often times our message is completely

dead on arrival and it is because the wrong system is used.

This tip never fails and puts you ahead of the competition.

Use only a cream colored envelope and never use white. The percentage of envelope

openings by your prospects and clients will increase.

Also, do not use a postage machine, always use a real stamp and make certain it is first

class.

If communication to your prospect or client involves a return address back to you, make

certain you put a stamp on the envelope.


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Investments or Deposits, Learn This Tip

Here is an important tip about explaining the difference between investments and deposits.

I would urge you to let this become part of your selling agenda.

Here is the difference

Deposits are guaranteed, the original principal is safe and secure. Examples could be Bank

CDs, Bank Savings Accounts, Money Market Accounts, Insurance Company Fixed Annuities

and US Treasuries.

Investments are not guaranteed. The principal is always at risk. Examples are stocks,

bonds, real estate, municipal bonds, etc.

So as a summary.

Deposit accounts are guaranteed and Investment

accounts are at risk.

It may seem like a small issue but to our target

market it is very real and it becomes important.

Safety and security is always explained as deposit

accounts.

Always Understand Your Prospect. What Do They Really Want? Great Info.

Understanding the needs of the client is important to building a relationship. If we are

always trying to fit our round peg into the square hole selling become almost impossible.

Here are some tips about selling to this target market.

This is important, remember it.

People Buy Annuities

You Must Sell Insurance


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What the Client Really Wants

High Interest or Yield on their money

Tax deferred growth, control over their tax liability

Guaranteed safety, many are too old to earn this money again

Right to withdrawal interest, this keeps their principal intact

Access to funds in an emergency and also if the funds are needed for long term care

issues.

The Client Does Not Want These

To annuitize, although it is a benefit, the need to keep their funds in a “pile” far over

shadows

To lose any more money in the stock market, safety and security is essential

Risk and who does? Why risk funds when it isn’t necessary.

To be concerned about tax consequence for children, they may say they are settling

these funds aside for their children, but if taxes are due, they really don’t care

To be told he will be in a lower tax bracket. Who does want to be told this? I want to

think my tax rate will be higher because it means I will be making more money.

Information is Key, can’t say it enough!

The Power of Compounding and How to Illustrate the Benefits

in an Annuity… Solid Tip

“The Power of Compounding.”

*A Traditional Investment Account Has Double Compound Interest .“

Definition: Interest on the Original Principal and Interest on Accrued Interest.

*A Tax Deferred Investment Account Has Triple Compounding Interest

Definition: Interest on Principal, Interest on Interest and Interest on Tax Savings

Who takes advantage or Tax Deferral! Smart Money People, That’s Who!


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Tax Deferred

Is

Tax Diminished

Corporate America thrives on tax deferral and anytime taxes can be delayed it is a winner.

Anytime you can send a tax liability to the future you will reduce the net out of pocket

because the actual tax will be reduced by inflation.

Here is a Great Test to Illustrate Tax Deferral:

The Power of Tax Deferred Compounding And The Effects of Taxable Investing

DAYS DOUBLE 1 CENT DOUBLE 1 CENT Every Day Every Day Without Taxation 28% Tax Bracket

1 $0.01 $0.01

2 $0.02 $0.02

3 $0.04 $0.03

4 $0.08 $0.05

5 $0.16 $0.09

6 $0.32 $0.15

7 $0.64 $0.26

8 $1.28 $0.45

9 $2.56 $0.77

10 $5.12 $1.32

11 $10.24 $2.27

12 $20.48 $3.90

13 $40.96 $6.70

14 $81.92 $11.53

15 $163.84 $19.83


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DAYS DOUBLE 1 CENT DOUBLE 1 CENT Every Day Every Day Without Taxation 28% Tax Bracket

16 $327.68 $34.11

17 $655.36 $58.68

18 $1,310.72 $100.92

19 $2,621.44 $173.58

20 $5,242.88 $298.57

21 $10,485.76 $513.53

22 $20,971.52 $883.28

23 $41,943.04 $1,519.24

24 $83,886.08 $2,613.09

25 $167,772.16 $4,494.51

26 $335,544.32 $7,730.56

27 $671,088.64 $13,296.57

28 $1,342,177.28 $22,870.10

29 $2,684,354.56 $39,336.57

30 $5,368,709.12 $67,658.90

31 $10,737,418.24 $116,373.32

10 Little Indians

When someone becomes a client I tell them about this program if they have IRA funds. I

say that my responsibility is to provide them the highest yield with no risk and how I do it is

to open multiple pots within their IRA.

Start in late November and finish by December 15. I ask my new clients if they would like

to participate in this program. Almost all of them do. I set the stage by telling them they

will receive paperwork in November of each year and we will not call them. If they want to

move forward, merely sign where indicated and mail it back.


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IMPORTANT: The return envelope for them to mail back needs to have STAMPS on it.

Your participation rate will increase dramatically by using this tip.

I do this by using the 10% free withdrawal allowed under the contract to move that

percentage to another bonus product. This means that in the case of a $100,000 IRA it

would be about $10,000 I would move to a new annuity. Even if I can increase the interest

rate for those funds from 3% to 4% I would do it because it is all qualified funds and it can

be moved without tax issues.

The benefit to them is a slightly higher yield and the comfort of knowing I am trying to

increase their yield without any exposure to risk.

The advantage to me is fresh commissions. If it is a Great American contract I would

move the 10% to RBC or American Equity. The next year I would take 10% out of the 2

contracts and move it to a third and so forth.

When a new client whom I have told about this program wishes to be included all I do

each November is send them the application and transfer forms with a note to sign if they

wish to participate, very low key. The other way would be to visit with them in person and

use the 6% bonus account you have in Idaho to really increase their IRA, I would put the

10% in the fixed side at first so they knew their yield would be 9% or whatever it is.

If you think about only $1,000,000 in IRA funds available and only 50% participate then

that would be a $50,000 annuity with a nice Christmas bonus for you. What if you have

$10,000,000 in IRA funds? Set It Up At Delivery For Future Sales.

Recapture, Use this to Explain Tax Deferral. This is a Short Tip but a Very Good

one to Have in your Bag

I have used this concept for many years and it is one of my stand bys. It is called the

“recapture” sale.

We have covered in depth the topic of “tax deferral” in several parts of this manual. But

what we haven’t covered is a catch line to put it in perspective.

When we talk about tax deferral we are really talking abut sending a tax liability into a

different tax year. That time period may be 1 year of 10 years it doesn’t really matter how

long it will be.


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So I say this:

‘Mrs. Jones, by using tax deferral you will be the one in charge of when this tax liability

will be incurred. It could be next year or some other future year. In the meantime, your

annuity will provide interest credited to your account but the tax liability will be deferred.

Here is something you may not have known. When you access your funds in the future, you

will not be required to go back and “recapture” the tax liability. The IRS doesn’t require you

pay any back taxes, just the liability of the tax year in which the funds were touched!”

No recapture! I know what you are thinking, this is sort of silly but it really isn’t. One of

the great benefits of these products is tax deferral and knowing that the tax liability is

totally in their control creates a bountiful selling point.

Recapture! This Is A Great Term To Use.

Colors, Hedge Your Bets!

Several years ago my wife decided to hire a consultant to organize my office and how I

presented myself. She was very experienced and I actually grew to trust her and respect

her opinion. She made me aware of certain colors to wear and what colors to avoid.

I followed her advice and I am convinced it has had a great deal to do with my success.

Here are a few of her recommendations that I have incorporated into my business life.

White: Avoid at all costs. Never let your prospect see white paper and do not wear white

shirts.

Black: This means safety and security, we only use black binders once the annuity is issued.

It is in our deliver book section of this manual.

Red: Avoid if you can.

Yellow: Avoid in you can.

Dark Blue and Dark Green: These are confidence building colors and this is what I wear

when I meet a prospect or a client. Golf shirts, always new and not faded and I usually will

wear them 2-3 times only.

Cream: The secret color and the only that make people feel at ease. I wear cream colored

pants and I will only use cream colored paper on anything I will ever show them.


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Pink: Means love. Not a good color for a prospect to see.

Goldenrod (Gold): Relates to inner thoughts and a great color for the fact finder.

You can laugh if you wish, but try it, and then watch how much easier it is to build

relationships.

Use Time Horizons to Position Thinking About Annuities.

Probably the very biggest error that is made with financial planning by people is the

mistake regarding “time horizons.”

It is partially human nature because the older we get the shorter we think. As an example

if I were to say to a seventy-five year old female that she should buy a 15 year bond she

wouldn’t agree but based on life expectancy tables it is about right.

So in discussing time horizons I use the example of US Treasuries. I point out to the

prospect that by looking longer they have more options.

“Mrs. Jones, the very safest place to keep your money is in US Treasuries. But if you don’t

look longer you will not receive the higher rates. As an example a one year Treasury may

only pay 1-2% but a ten year Treasury may pay 4-5%. By looking longer we have so many

more options.”

That is what we provide, longer term products and by tying our products to US Treasuries

as safe and secure we are joining these products together in our client’s eyes.

Try it; “looking longer” has many more options for our prospect.

I Guarantee You Have Never Heard of This Tip and It Really Works

This tip really works and will give you tons of prospects and the marketing work is done

for you.

This is a built in sale with people who really want you to see them. Here is what you do…

Find several LTC salesmen and invite them to a meeting. They are all over the place.

Throw a stone and you’ll hit one.

Offer them $20.00 for each LTC Medical decline they get. Pay them in cash when they

give them to you.


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Call the MD (medical decline) and them and tell them that even though they have been

declined there is new information for them.

If privacy concerns become an issue have the agent call them for you, they will because

they are all in need of cash.

Provide information listing options available to them for alternative LTC options. (in this

manual)

Move to a fact finder and they will tell you everything. (in this manual)

Prepare the close.

Make a sale.

We both know it isn’t that easy but your new prospect will be about as easy a prospect as

you’ll ever find. If the agent wants to be more involved, take him with you. If a sale occurs,

sharing compensation may be in order. I don’t, but it is an option.

You can get tons of these prospects just by talking to the LTC folks, they have no idea

what other options are and it is almost a guarantee

they haven’t done a “feeling” fact finder.

There is no one who is doing this and it is almost

unlimited prospecting because of this statistic I found

the other day.

LTC agents will sell 14 policies a year and half will be

declined. Just think of those numbers!

Annuity Policies and Option “D”…. Huge Tip

Annuities can protect assets against asset spend down in regards to Medicaid and are

often used for that need.

But… Do you know that there are annuities that can be sold as regular tax deferred

contracts and sold for all the benefits they provide? And they contain a little known

“settlement option” known as D.

These contracts can be changed in the future to a contract to assist in asset protection.

And the ownership between spouses can be changed so it can assist the well spouse


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So sell the benefits of annuities and throw in this one. ‘Mrs. Jones, this contract also has

a provision that in the event either you or your husband would be confined to a nursing

home for long term care needs, the well spouse can use these funds as income and it would

be exempt from spend down rules.”

Sell these benefits and the versatility they provide. They will protect asset spend down

issues and the contract can be transferred between spouses without fees or tax issues.

Natalie Wood and the Benefits of Annuities

Here is a little story I throw in sometimes when explaining the

benefits of annuities.

As I go down the list of benefits and come to the “Probate

Avoidance” issue these contracts provide I will often stop and say

this:

“Mrs. Jones, do you remember the movie star, Natalie Wood?” They

all will remember her.

“Do you know that after that terrible accident that took her life (she

drowned) it took 18 years for her estate to move through probate?

And do you know that in California (check your state) probate is

considered public knowledge and anyone could go look at her estate?”

“Mrs. Jones, that is why one of the nicest benefits of these products is that if you name a

beneficiary the funds will transfer without probate delays and expenses.”

Our target market thinks about these issues and to not make a big deal about it is a huge

mistake.

“Mrs. Jones, who should I put down as your beneficiary?” A Natural and easy sale.

FDR. His Take on History Works to This Day…Great Tip

President Roosevelt said in 1932 that the only thing worse than death is outliving your

money. Have truer words ever been spoken? He was attempting to nudge the nation

towards the creation of Social Security.


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What product could provide the very same thing?

Annuities. One of the truly great benefits these products provide is the transfer of financial

responsibility from yourself to a 3rd party, an insurance company.

Annuities can provide the benefit of providing income for

as long as a person lives so the continued self occurring

income never stops.

Try accomplishing that with a Bank CD or a mutual fund!

Use The Past To Sell The Future

Municipal Bonds are Tax Free or Are They?

Yes they are income tax free as far as the Federal Government is concerned and often

local taxes are also exempt.

When may they be taxable?

Because of income limits on whether social security becomes taxable. Income from

municipal bonds is always counted against the income limits on the tax calculation.

What tax benefit received by accepting lower interest for these products may be lost

because of paying taxes on their social security.

A simple calculation can be done to determine if this is the situation.

Then there is this. Municipal bonds held in a mutual fund can create tax liability if they

are sold within the fund for a gain. It is important to always

know the turnover rate (tax exposure) of any municipal

bond fund.

Once again this potential tax liability could offset any

planned gain plus mutual funds have ongoing fees and

expenses and with the normally lower yield of these bonds

the actual net lead may be lower than expected.

Know About The Tax Liability On Municipal Bonds


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Here is a Good Tip for Closing. Assuming You!

If you develop the system of assuming, you can place the prospect in the role of having

already purchased. This is done by explaining the benefits of the product by placing him/

her in the equation.

Have you ever really thought about how a close in an insurance sale works? To me it is

the result of finding the right prospect, completing the fact finder and using our wonderful

products as a solution to a discovered need.

Right?

Well maybe it is not quite that simple.

You can do a great job and still not make the sale if you do not use the “ownership

assumption.” Ever hear of it? It is also known as the “You” close.

Here is how it works.

The idea is to transfer the prospect using the word “You” into the benefits that can be

enjoyed with the annuity or insurance product. As an example:

Tax deferral in an annuity means “you” will have to pay less in taxes.

“You” will enjoy a guaranteed rate of return.

“You” will have different options for accessing your funds.

“You” will be able to pass your annuity to your heirs without probate expense.

“You” will be able to have income “You” can never outlive.

By placing the prospect ion the equation so in their mind’s eye they can understand the

benefits it becomes a real asset and not an intangible piece of insurance paper.

Try it because it works, always place your clients “You” before anything else.

Identity. Know Who You Really Are.

Many years ago when I was just beginning my insurance career I had the great fortune of

spending an afternoon by a swimming pool with probably the greatest insurance salesman

of all time. I was at my first convention and he was there as a guest speaker. That person

was Joe Gandalfo.


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If you don’t know that name, you should. He is a study in persistency and sales ability.

Joe has over 18,000 clients and has sold well over $1 billion worth of life premium. Want

me to repeat that? $1 billion of premium!

During that afternoon we talked about all sorts of things that he had done, how he had

built his sales career and it really boiled down to just a couple of points that separated him

from the rest of us.

1. Always work Hard.

2. Selling is 90% understanding people, study people and learn who they are.

3. Have tons of leads and work them.

4. Never be ashamed to be an insurance salesman.

5. Do what almost all agents won’t do, see people.

I have tried to copy Joe and I have often thought back to that afternoon with this

thought. Here he was one of the greatest sources of insurance selling information on the

planet and he was sitting alone. Other agents who had been to the morning meeting were

now playing golf or at the beach. I had him all to myself and I learned from him.

As he got up to leave that late afternoon he said this to me and I have never forgotten it

and I will pass it along to you.

“I was who you are,

You will be what I am.”

A lot of power in those words and to me it means that I must never stop learning, never

stop selling, never stop seeing people and never be ashamed of my chosen profession.

I Am An Insurance Salesman!

This Tip is Free and Available to All. Try It

Want cheap, often free publicity? Write a press release!

A press release should have information worth getting out to the public, but let’s not kid

ourselves — a press release is basically an elaborate advertisement for your business

camouflaged as news. It should appear newsworthy, but really, it’s pseudo-newsworthy.


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Some Press Release Ideas for the Insurance and

Annuity Marketer:

- Announce your free annuity seminars.

- Announce new annuity or insurance products and how

they might differ from others on the market.

- Announce a new service area. If you’re in a large city

you could announce that your firm is now servicing smaller communities in the surrounding

area.

You get the idea. Try those or come up with your own pseudo-newsworthy topics.

Whatever you do, don’t be brazenly self-serving. Example of what not to do: Bill Broich sells

annuities and would love to sell one to you, call 555-5555. Not only will it not fly, it could

have the opposite effect by damaging your credibility.

You can submit your press release to numerous sites online and occasionally they’ll get

syndicated by national media outlets and can often filter back to your local media market.

You can also submit your release to your local newspaper and the local business paper if

your city has one, but chances are slim you’ll make print in the local outlets, but it can and

does happen. Regardless, being on the press release portals will filter back to your local

market in some shape or form. Many people have keyword Google News Alerts for their

respective cities. So if your press release lists your city, which it should, chances are good

it’ll wind up in the e-mail inboxes of the Google Alerts subscribers in your city. Local

bloggers might run the article, or make mention of it, other websites might pick it up, and

best of all the release will come up in local search engine results.

Press release structure is straightforward: Open with a title, subtitle. List date and city of

origin in the first sentence of the body content. Write 3-7 paragraphs of copy and end with

a company bio and contact information: phone, email and web address. If you have a

website make sure that it is not simply listed, but that it is “hot linked’. This will help you

get traffic to your site and the live link back to your site will increase search engine


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If you execute a solid press release chances are good it’ll net you a few leads and quite

possibly a sale or two. In the very least it’ll help build awareness of your name and services

and will help with marketing your website to Google and the other search engines.

They Say The Only Bad Publicity Is Your Obituary

This Great Tip is From the Girl Scouts:

I was on Google exploring and I ran across a Girls Scout sales tip page and I thought…

WOW…these are really great ideas. Here are the tips…..

Meeting Your Customer:

Introduce yourself as a Girl Scout® and explain why you are selling

cookies.

Tell your customer what you and your troop or group will do with

the proceeds from

selling cookies.

Explain how the cookie proceeds go back to the girls from your

council.

Help your Customers:

Learn about each cookie and offer suggestions.

Remind customers that Girl Scout Cookies® freeze well and they’re only available once a

year.

Girl Scout Cookies® make great gifts and are perfect for parties.

Share some delicious recipes that use Girl Scout Cookies®.

Be Prepared to Sell:

Rehearse your sales presentation for your family and friends.

Hand the Order Card to customers and ask them to fill it out.

Set a goal of how many cookies you will sell each day and track your progress.

I am an annuity salesman and I thought this is how to do it. Learn from the Girl Scouts.

Be friendly, explain yourself, explain the benefits they will enjoy, ask for the sale and set

goals…. The Girl Scouts have it figured out…learn from them!


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Internet Marketing Tips:

Many insurance agents now have websites, but unfortunately their websites languish in

obscurity. The old days of putting a website up and waiting for the traffic and leads to pour

in are long over. There are just too many websites chasing limited traffic and only those

with active promotional plans will survive. Of course, some agents see their website as only

a place for prospective clients they’ve met offline to find

more information, get to know the agent, etc. etc. That’s a

perfectly reasonable reason to maintain a web presence.

However, if you want your website to wrangle in more

business you’re going to need to aggressively promote it.

The easiest ways to promote your website are to make

certain your website name is listed on all your office

collateral. Put it on business cards, letterheads, etc.. If you

purchase offline advertising make sure your domain is listed

on the ads. These days a lot of people would rather contact

you via the web than pick up a phone. I’ve consulted many agents who forget this… they

invest hundreds in a yellow pages ad and yet somehow forget to add their website domain

name. Missed opportunity and a potential loss of sales. For those of you who are more

aggressive think about a window sticker in your car with your domain…. put a domain

sticker on your office window, or on your office signage. If you giveaway merchandise such

as free pencils, pens, coffee cups, golf balls, list your domain along with your phone

number. Be aggressive. Be creative. Get your domain out there.

For those agents who are serious about getting more web traffic and leads beyond

employing the normal offline methods you need to learn about SEO Marketing. SEO is an

acronym for search engine optimization. The main search engines are Google, MSN, Yahoo,

Altavista, Ask.com, plus there are scores of second and third tier search engines like

Findology, Miva, GoClick and many others.

In order to get a good ranking on these engines you need to take a number of steps. SEO

can be a complex craft that can take years of study and experimentation to master. The

basics involve finding key phrases and words people are searching for, optimizing your

website pages for those key words and phrases to give your site the best chance of coming


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up and then you must create link popularity which is simply acquiring quality links from

other related websites into your website.

Establishing link popularity is important because it demonstrates

to the search engines that your site is important… important

enough for people to take the time to link to. Good link popularity

is one of the single most important facets to promoting a website

and getting a good ranking. Of course, it’s a bit more complex than

that. There’s PR rank and other factors you must consider… but that

is SEO in a paragraph.

You’re probably wondering where you go from here. You have a number of choices.:

Option One, you can scour through the web, begin to study SEO marketing, experiment

and learn the trade which will be time consuming and distract your from selling annui-

ties and other insurance products. You can ask your website designer to help you pro-

mote your site, but often these people are designers and coders and don’t understand

internet marketing.

Option Two, you can hire an SEO expert, but be prepared to pay for it. SEO experts can

cost as much as two-hundred dollars an hour and most minimal client engagements will

set you back several thousand annually.

Option Three, the easiest method is to let a piece of easy-to-operate software do all the

work for you. This is the lazy man’s method and the method I recommend for the busy

insurance agent. That software is called SEO Elite. It’ll efficiently perform all SEO re-

search and promotional functions for you and usher your insurance website into a good

traffic generating search engine position. It’s inexpensive, easy to use and I guarantee

your competition has never heard of it. SEO Elite is typically only talked about in the in-

ternet marketing world, but I feel those of us in the insurance business need to borrow

from internet marketers and use their guerrilla marketing tactics to grow our businesses.

As I’ve discovered taking an old hat business like ours and combining it with cutting edge

technology can create a synergy and put you light years ahead of the dinosaurs that

tend to make up the insurance industry.

So there you have it. Some basic website promotion ideas and an introductory lesson to

search engine marketing and the SEO Elite software.

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Shaking Hands is the Beginning of a Relationship. Make it Positive

It all depends. How do you shake hands? Have you

really thought about it? When you shake hands you

begin a relationship with someone and that first

impression can make or break your sales relationship.

For instance, what does your handshake say about

you? Are you trustworthy? Are you confident?

First Rule: Never shake hands using the two hand shake.

This is considered to be phony and most people are

suspicious.

Second Rule:. If you shake hands with your palm down this signifies personal confidence

and power. Not a good way to shake hands with the opposite sex. This can be a turn off to

some people.

Third Rule: If you shake with a limp wrist you will be looked on as submissive and your

opinion will not carry as much weight.

Fourth Rule:. If you shake hands with your palm up this indicates insecurity and lack of

confidence. It shows that you are submissive and can be dominated.

The Best Way…Have your hand vertical and grip firmly and do not over squeeze. If a

woman does not offer you her handshake, DO NOT offer yours first. This is a sign you are

being too aggressive..

These simple tips can help you start a sales relationship on the right foot

Notice to Agents: Quit Jumping to the Next Hot Deal, Solid Tip

It was the accepted practice in Babylon 4,000 years ago that for a month after the

wedding, the bride’s father would supply his son-in-law with all the mead he could drink.

Mead is a honey beer (and can be wine) and because their calendar was lunar based, this

period was called the honey month, which we know today as the honeymoon.

Many annuity products have a honeymoon period with the client. The honeymoon is the

time period from how the insurance agent may have explained an annuity to the harsh

reality of performance! Generally many mistakes and misunderstandings occur when


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Equity indexed annuities are not the easiest product to explain, there are just a lot of

factors to determine. Be careful and take your time so the honeymoon period lasts as long

as the contract.

Start with this. Equity Indexed Annuities are fixed annuities and your funds are NOT invested in the stock market! Your funds are

invested in the general bond portfolio of the

insurance company and any gain is provided by the

use of option futures between the insurance

company and Wall Street.

Full disclosure, take your time explaining the

product, focus on the underlying guarantees,

the benefits that come with the contract and

guess what….Maybe The Honeymoon Will Last!

Get a Coach. It Can Be Lonely Out There

Remember the Lone Ranger? When he needed help he relied on his sidekick…Tonto.

If you are a Lone Ranger in the insurance business, maybe working in your own office or

out of your home, you need a Tonto!

Working alone limits your exposure to new ideas and the camaraderie of people doing

the same job as you. It also can get very lonely.

Here is an idea.

Hire yourself a coach. I have run across lots of people in this business of being a personal

coach. I have found most of them to be well organized and very focused on the end result:

success.

Michael Beck and theinsurancecoach.com is one and there are many others.

Think of it as a doctor who needs to consult with a specialist. We all can’t know

everything and having a coach to bounce ideas off of is very helpful.

The cost can be anything you want it to be. I would set a budget ($500) for a month and

see how I felt after the time period. I would also stay away from any coach who wanted me


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to put my annuity or insurance contracts under him. That is nothing but a scam.

Another way to approach the hiring of the correct coach for you is to do this. Hire a

consulting physiologist (about $120) for one meeting and have them provide you with the

questions needed to hire the best coach.

Take this information and actually interview potential coaches for the job. It is the

professional way to do it and it will provide you with needed information to get the right

person.

This is Guaranteed to Increase Your Sales…Don’t Laugh

It couldn’t be easier, but first you have to re-program part of your thinking. What I am

going to tell is the truth because I have done it myself.

It truly works.

If all you think about is selling annuities your brain slowly closes in on the problem. Soon

you will be on the internet at night and don’t forget those Saturday morning meetings, etc.

You have to live also and while I have always preached to be focused and to have a

narrow view of marketing, sometimes you need to blend that with my secret

method….Give It to Get It.

Schedule at least 2 hours and commit to doing something for charity or for another

person each week. Pick up trash along the highway. Go to the food bank and volunteer.

Mow you elderly neighbor’s lawn. Give blood. Wash your wife’s car (not at the quick wash.)

Volunteer at the local hospital. Deliver food to shut ins. Etc. Etc. Etc.

Just try it and see how your whole attitude about selling annuities will change.

Perspective becomes a major focus of your selling efforts.

One rule to follow…Never tell anyone what you are doing! Silence is golden here. Keep it

a secret but when the opportunity comes to help another agent who may be struggling,

then tell them the “Secret.”

Laugh if you wish but this one thing has helped me become a better annuity salesperson

more than anything else.


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Knowledge is More Than Golden...It Expands You.

Every month I pick a subject and can spend 3-4 hours learning all I can about it. I will

randomly pick a topic that will have no relationship to my business life. Topics like frogs,

computers, well drilling, etc.

I will go to the library or use a Google search and do a crash course on the topic simply

for personal fulfillment.

When it was Arbor Day I took time to learn how it all came into being. I won’t weight this

down with the entire story, but I do want to share a very important fact I discovered. As I

am sure you know, trees absorb carbon dioxide and release oxygen. This balance is

obviously important to us humans as we need oxygen.

Here is the fact…a mature shade tree (25 feet high) will provide the same oxygen as 15

Fir or Pine trees. Amazing, isn’t it? When you think of improving your home consider a nice

shade tree — it will help all of us.

Now do the same thing in the annuity business. Find some obscure topic about finance,

money or insurance and leap into a crash course. In 3-4 hours you can become a complete

expert on that topic. The idea that you can learn so much about something obscure may

never actually sell an annuity for you directly but it will indirectly help you.

You will gain a new confidence and it really changes how your brain functions. These

small self-learned courses will add confidence and that will show in your sales and in your

personal life.

Here are a few topics to start with:

Adjusted debit balance

Kruggerands

Weighted average cost of capital

It Really Works. Do Things The Other Agents Won’t Do.

Be Better Educated. Be Smarter.


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Is Your Wife Happy? You Can Sell More Annuities if She is!

Are you in agreement with this? I am. If my wife is happy then so am I. Being married

means being a partner with another person.

My wife and I have different roles in our marriage; she volunteers, cares for our home

and our daughter and more especially takes care of me.

I run the business, mow the lawn and await further instructions. Like most of us living in

husband land.

How do I do my job so it does not overflow into her life as a negative? I remember when I

couldn’t make enough money to make everything work. I would come home to an unhappy

situation and one where worry had overflowed into our home life. How could I do it?

I wrote a business plan and I decided that work was work and play was play.

I finally was able to figure out who my target market really was. Instead of anyone who

would talk to me I decided on the only people I would talk to and wrote it down. My

annuity prospect market:

Seniors over age 65

Daytime appointments and accessible

Available assets of $400,000 or less

People who would benefit from my simple annuity products

I needed a prospecting method to round out my annuity selling system — to reach these

people and one which would be affordable. There were lots of options, seminars, direct

mail and referrals. I decided to use a combination of these and I also decided keep my

marketing budget within reason.

Use this as a comparison for your planning. If you invest $1,000 a month in annuity

marketing using a direct mail campaign you should expect about 120 annuity leads a

month. With normal lead conversion ratio of 1/3 you should be able to get in front of 40

prospects a month. After a few weeks you would also add to this the closes from the

previous weeks along with deliveries. Now you are busy, I was.


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By outsourcing the marketing on a real commitment (direct mail) I was able to put more

focus on the other portions of the business like appointments and selling annuities. I also

outsourced the telephoning because I am uncomfortable on the phone.

The result of this was I was able to remove the business negatives from our home and

only share with her the benefits we were now enjoying. I had myself an efficient annuity

selling system that worked.

Here are some additional points.

Write a business plan.

Write down your target market prospect.

Decide on how you will reach them.

Outsource the marketing.

Outsource everything you are not good at (I outsourced the telephone).

Simplify your product line (I do not sell LTC or life insurance) I only sell annuities.

Schedule work weeks, if it is a work week, work all week. If it is a play week, no work is

done (I schedule 40 weeks a year as work weeks).

If you work at home, have a place to go to work in your home, when you are in your

office you are working and nothing else. (Take solitaire off your computer).

Do not overanalyze anything, keep things simple (repeat: keep it simple).

Buy an annuity and be proud of it.

Do not call yourself a financial planner or estate planning specialist etc. Call yourself an

annuity salesman! That is what we are!

If you do not enjoy selling and you do not own annuities yourself, do not sell them. And

always remember…A Happy Wife is a Happy Life.

Promissory Notes..Big Mistake

You see them everywhere, high interest being offered from a company that sounds

financially wonderful such as: “Financial Security Horizon Partners” .

I made the name up so I hope one doesn’t actually exist.


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They sound reputable and many are just who they say they are. But…

Many are not. Tons of senior adults have been taken by promissory notes backed up

only by the paper they are issued on. Why do seniors fall for it?

Senior adults are for the most part polite and trusting people. A nice looking salesperson

comes to their home and treats them nice. Asks all the right questions and gains their

confidence.

The next thing that happens is some of their money is now “earning” huge interest in a

promissory note. Happy days….if they get it. Be careful because that does not always

happen. Remember Summit Investments in Spokane Washington? They issued promissory

notes that didn’t perform and there are lots others in this category.

How do you protect yourself and your senior clients?

Here is some advice for them.

Insist on everything being in written form. Ask for references. Ask for copies of licenses.

Take your time and do not be influenced by what your friends are doing.

And never buy anything without a complete understanding of the risks as well as the

rewards. Most people selling these products will only focus on the benefits and how much

interest is available. Protect Your Client. Keep Them Informed.

Taxes Can Be Imposed on Certain Immediate Annuities.

This tip might allow you to sell a tax deferred annuity and remove the interest instead of

an immediate annuity.

California has quietly been taxing annuity payments to retirees. Naturally California

would be the one to figure out how to squeeze all the available tax dollars!!!!

What is the tax? 2.35% of the benefit. The tax is calculated before the benefit is paid to

the annuitant.

Taxes and more taxes.

Makes you wonder how many state accountants it took to dream up this idea. They must

have had help from the state assembly. (Oh by the way, they also will charge any income

taxes that are due the state!)


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Any other states tax annuity benefits and following California’s lead.

Maine 2%

Nevada 3%!!!!

South Dakota 1.25% on the first $500,000 and then a reduction

West Virginia 1%

Wyoming 1%.

I think this is usury but just wait — other states will be right behind them.

How to avoid the tax; convert your annuity to an income stream in a state that doesn’t

have the tax. Pretty simple.

Ask your tax preparer, don’t take my word for it… get the best advice you can.

Know Your State’s Tax Rules

The Assets “Held Outside” Secret

Here is an easy one. All you need is a little information.

When you are speaking to a prospect and looking over the brokerage statement you may

notice “assets held outside” the brokerage firm. This means the assets are being collected

by the broker dealer only on paper and not at the brokerage house.

As an example an asset held outside of the broker dealer may be a variable annuity.

Brokers like to collect all the assets they can even those held outside so they know when a

new sales opportunity becomes available.

When you find these assets you DO NOT need the broker’s permission to

transfer them.

Simply send the transfer documents to wherever the assets are being held (insurance

company) and they will be transferred without the needed permission from the broker.

Many times the broker will not know the asset has been re-positioned for months after it

has been moved.

A great little secret that allows assets to be repositioned and the broker doesn’t even

know and permission is never needed.


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The “Never Used” Secret of Higher Immediate Annuity Commission.

Do you sell immediate annuities? No! Is it because the commissions are so low? I don’t

sell them for that reason and yet I have a system for making the prospect happy and not

taking a reduction in compensation.

Here it is and please keep it a “secret” or the immediate annuity companies will be out of

business!

When I meet someone and their primary interest is income I say this:

“Mrs. Jones, I know you need income and my annuity products will provide that for you. The

problem is once you create the income stream you can’t change it and you will be locked in.

Here is something that other people in your situation have done. Many people have delayed

the decision to convert their funds to income and at the same time have their funds invested

in safety and security.”

By explaining to Mrs. Jones the fact she can control future unknowns it spins the use of

an annuity to her benefit. It allows her to feel in control and to offer her more options.

1. Find out how much money they have for the immediate annuity

2. Go to any insurance company website (I use Great American) and price the immediate

annuity based on the amount and her age.

3. Determine the monthly income at the current age and then re-run the calculation at

ONE YEAR higher. As an example if she were 70, run it at 70 and at 71.

4. You will have two figures (as an example) let’s say the income at age 70 is $1,000 a

month and the same deposit at 71 is $1,050.

(This is a great transition, maybe use this up above). Now back to Mrs. Jones…“Mrs.

Jones, the current income value of your deposit based on your current age is $1,000 a

month. But I know a secret, that secret is this. Immediate annuity rates are based on your

age and each year those factors determining the monthly payment increases. For instance,

the same money will provide more income at 71 than at 70 because it is based on age and

life expectancy.”


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“Mrs. Jones, I know another secret. It’s a secret insurance companies do not want you to

know. Here it is. Put your funds on deposit and select the interest only option. My annuity

company will pay a first year interest rate of 8% (bonus first year) and you remove the

earned interest on a monthly basis. The interest each month will be $1,000 a month.”

I continue. “Next year when the interest rate changes we will have several options. You

can keep your funds on deposit and continue to withdraw the monthly interest, you can

convert it all to an immediate annuity or you can continue to withdraw the same fixed

amount.”

Naturally if you invade principal for the same monthly income as with the bonus interest

rate your account will decrease. Here is how I deal with this.

“Mrs. Jones, there is one last secret I need to share with you. Even though every year your

account declines, the factor that determines a monthly payout for you increases (mortality

table) so at any time you can convert your pile of money to an income stream, and you can

determine how long that income stream will be, even for the rest of your life.”

This simple concept works like a charm because it gives Mrs. Jones control of her future

options.

· Monthly income which is desired

· Not locked into a payout

· Control over options

Plus the compensation is much better for us and it becomes a complete Win-Win

Situation.

Use the Prospectus to Make the Sale

Most agents will not think about now many sources we have at our finger tips to make a

sale. I like using the prospectus on a security (mutual funds, debentures, corporate notes

etc.) because all factors both pro and con are disclosed.

On most prospectuses it will state who may or may not be an appropriate investor for the

specific security.


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I think it is important to not be biased about any specific security but I have found most

brokers concentrate on the yields and gain and always sweep under the carpet downsides.

Here is an example of a prospectus offering a note for sale.

Risk Disclosure and Factors:

The notes are not an appropriate investment for you if you are not knowledgeable

about the significant elements of the notes. You should not purchase notes unless you

understand the risks involved.

Redemption: We may redeem your note when it is our best interest to do so.

Uncertain Trade Markets: We cannot assure you that a trading market for your notes will

develop or be maintained.

Appropriate: These notes may not be appropriate for all investors especially those who do

not have a diversified portfolio.

Then there is this:

Your investment in the notes will involve certain risks. This prospectus does not describe

all of those risks. Neither we nor the agents are responsible for advising you of these risks

now or as they happen in the future ‚ they may change in the future and we are not

responsible to notify you of any changes.

The broker will almost NEVER discuss all aspects of the prospectus. By learning how to

read a prospectus and understanding the positives and the negatives it becomes very

possible to find holes in the broker’s recommendation.

Finding a prospectus for a given offering is easy. I usually just “Google” the name and

sort through the listings.

Notice: Using a prospectus needs to be balanced and it is important to always know the

risk tolerance of your prospect. That risk tolerance can be evaluated by completing a

proper fact finder and attempting to fully understand the goals, desires and needs of the

prospect.

I have found dozens if not hundreds of situations where securities were sold

inappropriately. If safety and security are important to your prospect then many of these

notes and debentures may not be in the prospect’s best interest.


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Want to Get Paid in 7 to 9 Days on Transfers?

Who doesn’t? Getting paid is an important part of selling annuities, it is how we pay our

bills and continue on with our journey.

Have you ever written a new annuity only to have it held up for 60-90 days and have to

collect signatures, fight with conservation and wear yourself out? Just when you think it is

ready to transfer, always something new comes up. Conservation by the broker or another

agent gets old fast plus constantly calling the prospect always weakens the sale.

I can get paid in 7 days….Guaranteed. Want to learn how? A small technicality, this only

works for IRAs, 401 (k), 403 (b) (tax sheltered annuities) and other qualified funds.

Since an annuity is a long term hold it would stand to reason that an IRA would be the

logical place for an annuity so given that concept here it is…

Scenario:

Your client has funds in an IRA, doesn’t make any difference where it is, bank, brokerage

account, another annuity company.

Open an IRA account with your annuity company under the name of the prospect and

have a policy number issued (they will all do it). This is important later.

Have your prospect surrender the IRA directly to them. An IRA can be in their

possession for 60 days without any tax issues.

Wherever you are surrendering the IRA from make sure to get the transfer forms from

the custodian and have them prepared for your prospect. Easy to find on the internet or

simply call the custodial and have them faxed or emailed to you.

On the surrender forms mark it as an IRA rollover, no taxes will be withheld.

Write a letter under your prospects name to the original custodial re-stating this is an

IRA rollover and do not with hold taxes. Staple this to the surrender form and make

copies!

Tell your prospect to call immediately when the check arrives so that not a moment’s

interest will be lost. (they will call instantly).

Have them deposit the IRA check into their account and write a new check to


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themselves in care of the new custodial (annuity company). Explain that it is important

to create a paper trail for their IRA funds.

Complete all the paperwork for the new policy and if the funds came from another

insurance company, make certain you prepare the replacement form as required by your

state department of insurance.

Tell the client that you will write their new policy number on the check when you get to

the office. (you had it issued by your company). On the back of the check have your

clients write in the endorsement part, “For deposit only to the benefit of (insert their

name), IRA”. Write the policy number here also.

Tell your prospect that you will mail them a copy of their check as soon as you get back

to the office (with the numbers on both places). It’s very important that you do this.

You need to keep full copies and your client should also. Make a file for them and deliver

it when you deliver the policy.

You can surrender an existing IRA and reposition your

prospect’s funds into a new contract using this

method in 7 to 9 business days.

Easy As Pie.

Understand How Bonds are Rated and Their Default Rate

I am not picking on bonds. I feel they have their place and are great for any portfolio. If

you review the bond section of this manual you can find basic information.

The truth is that bonds have historically higher failure rates than people recognize and

you and your client need to know that there is exposure to loss when investing in bonds.

Oftentimes a bond failure doesn’t actually mean the bond is worthless. It could simply

mean a restructuring or a delay in an interest payment.

When a bond fails to make the interest payment the value of the bond (how much it

could be sold for) will decrease. The rating of the bond by bond raters (Moody’s) can also

weaken and drop.


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It is important to know how this could affect your prospects portfolio and it could

strengthen the need for more safety and security that an annuity can provide.

This is basic information regarding bond defaults and failures by category:

·U.S. Treasury: no chance for default.

Municipal bonds: investment grade bonds that have a very slight chance of default

(One analysis showed less than 0.05% over a 30-year period).

Corporate bonds: investment grade bonds have a higher risk, but are still low.

Junk bonds: below investment grade and have much higher risk.

Foreign bonds: may have a high risk.

Unrated bonds: Highest risk of all.

The lower the rating the greater the chance of a bond default or failure.

Here are numerous sources for finding additional information about bonds:

·Moody’s

·Standard and Pour’s

·Bloomberg

·Bond Default Newsletter

My favorite is Moody’s. They will supply a bond default list that has enormous

information available to us and it is free. Just log on and go to the ‘Watch List’ and you will

be amazed how many companies I know well are on this list.

Using This Information Is About Being Informed.

A Great Source for Competing Against Variable Annuities

Most insurance agents are intimidated by stock brokers. And why shouldn’t we be? They

have all those impressive licenses and nicer offices and their firms drop millions on national

advertising. We should be very frightened of these folks… NOT.


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Especially when the regulating agency SEC (Securities and Exchange Commission) is

willing to tell us all the bad things (and good) about the products many of them sell:

variable annuities.

Go to this web site and use it when needed: www.sec.gov/investor/pubs/varannty.htm

I especially like their “Caution Notices”. The site contains tons of them and also fully

explains the benefits as well.

Caution! (This is an example of caution notices at this site.) Other investment vehicles,

such as IRAs and employer-sponsored 401(k) plans, also may provide you with tax-deferred

growth and other tax advantages. For most investors, it will be advantageous to make the

maximum allowable contributions to IRAs and 401(k) plans before investing in a variable

annuity.

In addition, if you are investing in a variable annuity through a tax-advantaged retirement

plan (such as a 401(k) plan or IRA), you will get no additional tax advantage from the

variable annuity. Under these circumstances, consider buying a variable annuity only if it

makes sense because of the annuity's other features, such as lifetime income payments and

death benefit protection. The tax rules that apply to variable annuities can be complicated

– before investing, you may want to consult a tax adviser about the tax consequences to

you of investing in a variable annuity.

Another Source Of Information And It Is Free.

Due Diligence….The Broker

As consumers our prospects should always know who they do business with. It makes no

difference if it is you the agent or their favorite stockbroker. We can help our prospects by

accessing information free and fully available to anyone by using this system.

“Mrs. Jones, how well do you know your broker? Have you ever conducted due diligence

on your broker? It is available to you and it is provided to you by your broker’s regulatory

agency, the NASD.” The NASD is a self-regulating agency (National Association of Security

Dealers).

The NASD keeps records about their members and it is available to anyone. Since it is

available to anyone then it is also available to me. I am able to acquire this information


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about my prospect’s broker and I often volunteer to obtain it for them.

“Mrs. Jones, would you like me to obtain the NASD report on your broker? I think it is

important to always know who you are doing business with and NASD makes this

information available.”

I have obtained hundreds of them and given them to my prospects. It is all about

information and being informed. This information is publicly available and it can be used to

help build a relationship with your prospect.

Go to www.nasd.com and order it online. Go to the investor page and on the right will

be the box to look up the broker.

If you are getting the sources for your prospect there is also an 800 number.

1-800 289-9999

Never Use a Postage Meter and a Neat Little Trick to Communicate

Do you use a postage meter? Do you weigh each piece of mail? Do you communicate

with your clients mostly by email?

If you do, then stop. Stop instantly and learn this very cool little secret.

Would you not agree that the reason you are trying to communicate with your clients

and prospects is to get them to open and read the information you are sending? It doesn’t

make any difference if it is the US Mail or the internet. We want them to open our

communication.

Agreed? Then do this. Use a postage stamp! You must know the secret and here it is.

Use a US Postage stamp that has no or very little use of the color white. It must be a

“first class” stamp. This is very important.

·When you affix the stamp to the envelope PUT IT ON CROOKED! Got it? Just a little

crooked so the human touch is evident.

·Next, go to Office Depot or any stationary store and buy an ink stamp which stamps

“First Class” in red. On each letter you send to the client mark it with the “first class”

stamp and with the stamp on the envelope, slightly smear it so it is not completely clear

but can still be read.


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If you use this system your open rates will increase 37% on average. This opens up the

communication channels with your prospects and isn’t that the goal? To Increase Better

Communication?

Bank and Investment Company Fees Can be a Benefit to You

Banks and brokers love to charge fees. It is a very large part of their passive income. I use

their fee schedule and structure to build a relationship with their clients and my new

prospects.

I have contacted every bank and brokerage firm in my town and asked them to fax me

their schedule of fees. They have all complied and I have kept this file as a reference.

Don’t get me wrong. Fees are not a big deal to me as long as I know what they are and

when I will be charged fees. I convey this to my prospects in this way. “Mrs. Jones, I see you

do business with Old Rock Brokerage. Do you have a current copy of their fee schedule?”

The answer is always no and I say “I have a current copy here, it contains lots of

information.” I then give it to her and do not make a big deal about it.

The idea is full disclosure and making sure the prospect fully understands what fees are

being used. This is also very important once you begin the fact finding process and

disclosure of their personal situation begins. They know there are fees but many have no

clue what they are and how high they can be. By using the fee structure it allows me to

bridge other fees with them and increase our relationship.

My World Is Safety And Security. A Broker’s Position Is The Movement Of Money.

Will Rogers. The Best Friend You Can Have in the Annuity Business

Will Rogers, know the name? If you don’t, you better get with it!

Our target age market certainly does and they relate to Will Rogers. He died in 1935 and

his funeral was at time the largest attended funeral in US History with 125,000 attendees.

Will Rogers is not an icon. He is bigger than that. From 1915 to 1942 (7 years after his

death) he was the most popular person in the World!! Not just America, but the World.

Things Will Rogers said then are relevant now. Our target market relates to Will Rogers

and knowing some of his saying is very helpful in developing and growing a relationship.


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Will Rogers, An American Original is a great read. So is The Best of Will Rogers. These

and many others can be found on Amazon and in almost any book store.

Occasionally I will say to a prospect, “Will Rogers is my favorite humorists and he said…”

Here are some good quotes:

Things will get better - despite our efforts to improve them.

The trouble with practical jokes is that very often they get elected.

Mona Lisa is the only beauty who went through history and retained her reputation.

Live in such a way that you would not be ashamed to sell your parrot to the town gossip.

All I know is what I read in the papers.

Don't let yesterday use up too much of today.

A fool and his money are soon elected.

There's no trick to being a humorist when you have the whole government working for

you.

Half our life is spent trying to find something to do with the time we have rushed

through life trying to save.

Everything is funny as long as it is happening to somebody else. ·

The income tax has made more liars out of the American people than golf has.

We don't know what we want, but we are ready to bite somebody to get it.

We can't all be heroes because somebody has to sit on the curb and clap as they go by.

I don't make jokes. I just watch the government and report the facts.

Never let yesterday use up too much of today.

Everything is funny, as long as it's happening to somebody else.

Be thankful we're not getting all the government we're paying for.

There are thousands of them and it is in your best interest to learn a few of them. They

are solid relationship builders with our senior target market


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Use a Tape recording of Your Children to Increase Appointment Setting.

I bet you have never heard of this secret. I guarantee you no one knows or uses this! It is

a secret that will increase the percentages of the appointments you set on the telephone.

When you are making initial telephone calls to set appointments from direct mail cards

(or any other source) play a tape recorder in the background of children playing and making

noise. You can make one with your own children or family member’s children. It should be

background noise and the words not quite intelligible, just children making noise.

When you play this your numbers will go up. Why?

The reason is in our target market is very sensitive to children and it will humanize you. It

adds a warm layer of personality to the call and even though the senior cannot hear

specifically it will come across as a much more friendly call. They will likely even develop

a sympathy toward you as you're a family man simply trying to make a living for his family.

Everybody respects that.

You will have to experiment a little with the volume level which can easily be done by

calling your own cell phone from a home phone and adjusting the tape recorder noise. And

you can simply start with the noise and then quickly turn it down before starting your sale's

call. The caller will assume you've hushed the children.

It works and if you can just get those few extra appointments it will make the difference

between a giant income and just getting by.

Bank CDs. Is There a Tax Advantage to Moving the Money? Here is a Great Tip.

If you consider your responsibility to your client that your job is to provide the highest

possible rate of return without any exposure to risk. That is how I see myself and my

business plan is based on just that goal.

What happens when a bank CD’s rate of return is below market and higher rates are

being offered in other vehicles such as annuities?

What is the advantage to moving the bank money? How can you reposition your

products without causing a loss due to surrender penalties from early movement in the

bank CD?

Easy, just remember this!


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Surrender penalties suffered on the early removal of a bank CD are fully tax deductible!

Would you like me to repeat that? Deductible.

“Mrs. Jones, your interest rate at the bank is currently 2%, you can move your funds to an

annuity paying 5% but you will be charged a penalty by the bank to do so. Were you aware

that the surrender penalty charged to you at the bank is fully tax deductible to you?”

I never suggest you never give tax advice but this is an easy one. Just mention to Mrs.

Jones she might want to call her tax preparer to confirm it.

Easy Sale And A Solid Argument.

A Great Tip. Use the Correct Term for the CPA.

Remember our target market? It may come as a surprise to

you, but almost 100% of this target market does not employ

CPAs!

They don’t and you can reduce your chances of building a

relationship by assuming they use a CPA. Who does their

taxes? H&R Block, the library day, self tax work, friends and

family, etc.

Who does their taxes?… Their Tax Preparer!

Never ask them who their CPA is. Always ask them who their

Tax Preparer is. The assumption` they would use a CPA when

they don’t will put you at disadvantage and cause them to feel

negative about themselves and about you.

It is just a little “trick of the trade” but it will pay big benefits. It allows you to build a

better relationship. Tax Preparer….Never CPA!

The Pitch! Use This for a Relationship Builder

A “pitch book” is a short explanation about what you do as a salesperson and a brief

insight into our industry and our products.

My pitch book changes constantly as situations in the financial marketplace change but it

is always the same. It tells the prospect about me and our industry. I like to keep it fresh


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and always in movement as situations evolve. This business is very competitive and keeping

a pitch book fresh will have an impact on your ability to

build relationships quickly.

Here are some tips to building and managing a

successful pitch book.

A historical perspective of the past is important. If you are

an annuity salesperson then show how annuities have

helped so many people in the past. Connect the past to the

present with human evolution such as “Did you know that

Benjamin Franklin owned annuities?”

A nice touch is to relate the American economy with the

possibilities of the future. This allows for your prospect to

relate to their present situation by viewing a longer period of time such as 1950 to 2000.

The Dow Jones Industrial Average and the S/P 500 can be very persuasive in making this

point.

A good point is to show how world events can affect the financial markets and by

showing the possibility of a downside will strengthen the overall presentation. This allows

the prospect to understand that there can be times when investments may become more

volatile and that a plan that stays the course is a plan that will work over a long period of

time.

Third party information is essential. Referring to another source will build your credibility.

These can be newspapers and magazines that are relevant.

Explain the process about how you work and the time frames and the steps to working

towards a goal. Try and place the client into understanding how this process can be

personalized to his situation.

Fully explain your services and what the prospect may expect from you. I always include a

list of references in my pitch book and I always give my book to the client as a first meeting

gift. If possible, package the book in an upscale manner so that your prospect fully

understands you are a professional and you expect to be treated that way. By setting the

stage in this manner you will remove many obstacles that will appear during the final sales

process.


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1. Describe how any unique features of your services that may benefit the prospect.

2. Close by showing samples of what you’re thinking it might look like if it were pulled

together into a plan or specific portfolio for today.

A good pitch book helps point out what you have to offer. How what you offer is different

and what you hope to accomplish. Your pitch book will set you aside from other

salespersons and by taking the extra step in content and packaging will take a huge step in

making your prospect your client.

Pitch Baby Pitch, Better Than Business Cards….

Are You Using Our Legacy to Sell Annuities? Don’t Miss This Great

Opportunity!

Annuities have been with us for a very long time. Actually they date

to the revolutionary times when Benjamin Franklin used annuities to

help the Cities of Philadelphia and Boston provide funds for their

citizenry. The last of these annuities lasted until 1991 when the City of

Boston finally cashed it in.

Benjamin Franklin did not invent annuities although he was a great

supporter of their benefits. Actually one of the first users of annuities

was the Presbyterian Church. The Presbyterian Church used annuities

to provide for elderly ministers and their families way back in 1720.

They expanded their use for widows and orphans and became a

backbone of financial security for people of that time.

You might say that annuities are as old as our country and are a major part of the

economic growth of America. It is true!

It was not until the tax Reform Act of 1913 that annuities were actually included in our

tax code. All the years prior to then annuities were just part of the growing up of America.

In 1913 tax rules and regulations of annuities were adopted. It was decided that annuities

were so important to the continued growth of the American Economy that tax advantages

were granted and are in place to this day.


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Babe Ruth used annuities to avoid the risk of the stock market and thus was not hurt by

the stock market crash of 1929. The Babe used annuities to provide a lifetime income for

his wife and also for himself prior to his death.

I use this history to help my prospects feel comfortable about their decision to buy an

annuity. I always say this..

“Annuities are the most boring products in the universe, safe secure and boring.” Their

answer is always, that is what I want… boring. They want boring because there is no risk

involved with annuities; they are safe, secure and insured.

How are they insured and who actually guarantees them? I can’t think of a more

regulated industry than the insurance industry, maybe atomic energy or some weird thing

like that. As far as our industry is concerned, it is heavily regulated. If you do business as an

insurance company in any state the safety of the insurance company’s products are

guaranteed by three levels.

The safety and solvency of the insurance company and it is monitored by the insurance

commissioner’s department. Solvency is a must to continue business and it is the

responsibility of each state to monitor the insurance company.

Every Insurance company in each state guarantees each other’s solvency. Sort of a

weaving of joint assets.

The state guarantee fund in each state guarantees each annuity and life insurance policy.

This fund is monitored and managed by the department of insurance. Many states have

different levels of guarantees so it is smart to know what your state does guarantee.

I love to tell my annuity sales leads all about annuities and their long and splendid story

so intertwined with the history of America. Some points to remember:

Annuities were not affected by the stock market crash of 1929 or any other year.

Each annuity is guaranteed never to lose money.

In modern history (1913) no one has ever lost a penny in an annuity because of

insurance company insolvency


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Franklin, Ruth…..annuities are boring, just the way we like them.

Sell Our Legacy And Share The Wonderful Story Of Annuities With Your Clients.

Become A Star! This Tip is Easy and Effective and it Grows Your Business!

Consider doing what the movie stars do. Hire a publicist. If you think that movie starts

are the only people then you are wrong. Lots of people do this and for a good reason. It is

good business.

Professional athletes, novelists, physicians, marketing organizations, corporations etc.

have one thing in common. They all use publicists. To you this may seem way out of the

normal methods for doing business, but, in fact, it is very mainstream. Getting your name

out there is just advertising and nothing more. If you run an advertisement in the

newspaper or pay (costly) for the yellow pages isn’t that just using a publicist in a different

manner?

I know what you are all thinking. Am I kidding you? No, this is a very legitimate and bona

fide method of advertising. I have done it myself and it produced enormous results. In

many ways it really launched me to the next level.

I signed a three month contact to be represented by a publicist; the cost was $5,000.

Her job was to get me speaking jobs for local charities such as the Lions and the Elks, etc.

She also did press releases for media outlets and other newsworthy things. I also had her

book me into the local radio station as a guest speaker and the local expert. It worked,

overnight (3 months) I had become the local annuity expert in my area.

I spoke to over 30 groups at what I called the “Chicken Circuit” (because they always

served chicken for lunch), spoke on ½ a dozen radio shows and even wrote a guess editorial

for the local paper which I reprinted for handouts. Now that is exposure! I was even quoted

in the largest newspaper in our state because of the release sent out by her named me as a

“quoted” expert.

The end result is I became the local annuity specialist with instant credibility and

community standing. It became easy for me to attract attendees to seminars because they

had seen me in other genres. If you are on the radio or in the newspaper people associate

you with success and knowledge.


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Since I have no way of ever tracking specific sales results

directly from the use of the publicist, I can only guess. I think

that for every dollar I paid her I received at least $10 in net

sales commissions. The true benefit from using her is now my

status is still retained and my business is continuing to grow

and thrive but without the cost of paying the publicist.

There are two very important things to remember about the

power of advertising and the process of keeping your name

and image in the public eye.

In Colorado there are 88 mountain peaks higher than Pikes Peak!

The only bad publicity is your funeral!

Think Outside The Box. It Is Fun And Profitable.

Annuity Marketing Through Gender Separation

These are really interesting when you break them down. The differences between how

men and women look at life. Here are some thoughts.

REMOTE CONTROL.

Female.... A device for changing from one TV channel to another.

Male... A device for scanning through all 375 channels every 5 minutes.

COMMUNICATION. Female…..The open sharing of thoughts and feeling with one’s partner. Male... Leaving a note before going drinking with the guys. Gender selling, is there a different approach? Here are my experiences.

Selling annuities can also be separated based on the gender of your prospect. If you are

selling to a single female (senior) safety and security is at the top of the list and trying to

sell indexed annuities is not a good idea.

Single men are much the same way, generally safety and security is important and I have

found that single men are always interested in how much monthly income they can receive

at some future point in time. Single females don’t seem to have this concern.


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Now put them together and a whole new chemistry develops. The male wants to know

how much they can make and earnings are normally less important to the female. In a

married couple situation an indexed annuity almost always will win out as the balanced

choice and it may have something to do with the hunter/gatherer/nest builder syndrome.

I am not being sexist here and I’m sure I will draw the fury of the feminists, but, again,

based on my experiences, and my limited reading of anthropology, men are hunter

gatherers and women are nest builders. A nest builder goes through three stages, build the

nest (early family), keep the nest tidy (family years) and clean out the nest (later in life).

So it is important to sell to the situation. Focus on upswing and yield as a benefit.

Single females will almost always want safety and security and would not be a good

target for an indexed annuity. Focus on safety and security.

Single males will always have an interest in future income so focus on the benefit of

annuitization.

Married couples will almost always have more

interest in how the money can grow. This can

always be accessed by who is talking the most. If

the husband talks the most then it is an indexed

annuity sale. If it is the wife talking the most, then

safety and security is the benefit to focus on.

By separating sales concepts via gender

separation will in fact provide you an edge in

selling annuities. Whatever you do always focus

on the benefits an annuity can provide and how those benefits can be of use to your

prospects.

Gender Separation Is Important


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The Easiest Sale in the World: Annuities

I mean it, selling annuities is the easiest sale in the insurance industry. It is all a matter of

positioning and having a focus. The focus is simple: numbers. Having lots of people to see

and tell the annuity story to is the secret. Leads and lots of them that is all it takes.

Insurance agents all have one thing in common, who can I see today? Many agents even

have such a fear of not having anyone to talk to that it makes them almost paranoid. The

solution is very simple, do more marketing. Remember, it is all about numbers.

Here is how you do it. Decide on a target market such as seniors age 65 and above as an

example. Your target market can be almost anything such as any age group, any income

and any asset level. Once you have located your target market then place your marketing

plan in motion.

The marketing plan can be built around many different approaches so for the sake of

simplicity let’s use direct contact (direct mail.) With your selected target market decide on

a subject that will be of interest to this group. A sample topic may topics like this:

Reduce your social security taxable income

Protect your assets from nursing home expenses

New rules regarding your IRA and how to reduce taxes

Avoid probate cost for your heirs

·Etc. Etc. Etc.

Next select a service to do the marketing so the actual work is outsourced. Numerous

choices are available and trying several will help you select one which fits your geographical

area and personal approach. A simple Google Search will locate several choices but my

personal favorites are (America’s Recommended Mailers, Kramer Mailing Services and Russ

Jones)

Next do this, mail 5,000 mailers a month for a solid year. Do not stop and do not

evaluate the program for the whole year. Be focused and do not quit. The cost will be


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approximately $1,300 a month and you should expect a return of about 2%.

Take the expected returns of 100 leads and have a professional telemarketer set your

appointments (cost should be about $10 and a little spiff to her/him will go a long way, start

small and bonus). If averages hold, you can expect approximately 40 quality leads a month

or an average of 10 a week. The leads that you are unable to see place in a drip system and

have your telemarketer recall every 2 months for a year. Working 10 quality leads a week

for the work year will provide you with 1 (one) sale and the drip system will provide ½ sale

every other month.

The total sales you should make is 52 plus 6 from the drip system for a total of 58 a year.

Next calculate your average premium per sale and for this you may use the industry

average of $37,000. Multiply the $37,000 times the 58 sales and your total premium will

be $2,146,000.

Multiply the premium ($2,146,000) times the average commission of 7% (varies and

should be higher) and your gross income will be $152,220. Now subtract your cost of leads

(12 months times $1,300 = $15,600) from the gross income and that will leave you a net

income after sales cost of $136,620. You also need to average in the cost of the

telemarketer and that will depend on your personal situation but a good rule of thumb

should be $500 or so a month.

An annual income of $136,620 will place you in the top .6% of income earners in the

United States. And it is all done with a simple process based on numbers. One important

type is this; throw away the leads that you cannot reach and those who want to be

contacted later. By throwing away the leads will set you free, truly.

There it is, simple, easy and totally manageable. Oh, one other thing, it is very profitable.

Attention Annuity Salespersons: Control Your Own Destiny

Sales organizations love to sign you up. Contracting you is one of their greatest joys and

why shouldn’t it be. You do the work, you invest your money and they get the cream of the

overrides. What do they invest in you…Oh yes I know….Service!

In my opinion, service is a synonym for greed.


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Answer these questions:

How many times have you had an annuity marketing company attempt to recruit you?

How many telephone calls and emails do you get each week from annuity marketers?

How many times has a marketing company offered you free leads as an incentive to

contract?

How many times has a marketing company offered you their “secret” CD to learn what

how the big boys do it?

Insider Secret Number 1: You control your Contracts.

Here is my very first rule and one I hope you will adopt. Get a pre-release letter!

When you contract with a marketing company they forget to tell you about being

released in the future!

·What if your situation changes?

What if you found a marketing system better suited to your personal situation?

What if you wanted a change?

·What if we did not satisfy your marketing needs?

·How do you get released?

Do not become a slave to your FMO! Demand the pre-release. They all will do it!

Insider Secret Number 2: Most annuity sales marketing organizations do not

know how to sell annuities.

It is the old saying.. ”Those that can’t sell, TEACH!

Learn how to sell annuities and how actually market yourself and your business from

“those that do.” This is an easy topic to check out. Just ask your FMO how they would

make a sale in a specific situation and their answer is always based on product --not how to

make the sale. Try it and see for yourself. If you are committed to working with an FMO,

also hire yourself a coach, one who has sold and who can sell. This is the very easiest

direction.


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Insider Secret Number 3: Insurance company products are designed for only

one reason, to maximize profit to the insurance company.

The newest, latest and greatest annuity is generally just a new wrapper around the same

old product. The insurance company buys bonds to guarantee the performance and no

matter how you look at it, the yield and the annuities are all in the same arena. Just more

sizzle. If you chase the new products you will be just that “a chaser.”

Chasers never build a practice; never have anything worthwhile to sell to their clients

other than the newest wrapper on the same product.

Be different! Sell annuities based on the benefits they can provide to the owner. The

real reason to buy an annuity is not based on yield but on benefits.

Learn These Secrets And Do As Much For Yourself As Possible. Rely On The

FMO as Little as Possible

Great Secret to Annuity Sales

I have used this for years to find annuity prospects. For just a moment think about

annuity sales and what comes to mind is the financial planner/estate planner/ certified

senior advisor/ it just keeps going.

All those charts and new ways to explain how indexed annuities work and how much we

all need to buy them. After awhile it becomes such a chore to compete with them and

soon you will be looking for a simpler method to sell annuities. It seems to me the simpler

method the better and I think most prospects feel the way I do…just show me the benefits

and if it makes sense to me then I will buy the annuity.

I have a very simple method for making things simpler and to provide myself with

virtually unlimited people to see….That method is the back door approach and here it is.

Mortgage Protection Insurance Leads! You heard me right. They are a wonderful way to

back door into an annuity sale. Just think about it for a minute. A new mortgage should be

protected for the family in the event of death or disability. If the man is the bread winner

and the stay at home spouse needs to be there for the sake of the family then what would

happen if he died? How would she exist and keep the family together? Maybe she could

return to work and maybe she couldn’t. Either way it is a perceived need and almost


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everyone wants to be protected. Mortgage protection insurance is a simple sale and if you

are smart…can lead to an annuity sale.

Here is how I do it. After my needs presentation I always ask a few questions such as:

How long have you been at your current job? (Potential 401k rollover).

Do you own life insurance? (Potential conversion or possible combination with the

mortgage protection policy)

Do you own an IRA? (Possible annuity sale).

Do you own an annuity? (Possible rollover, 1035).

Do you own mutual funds? (Possible annuity sales).

The list can go on and on. There is a secret about mortgage protection insurance and it is

this….most people do not think of it as life insurance!. It is considered a need for family

survival because we all need a house that is ours and nothing feels better than not having a

mortgage….it is the basic safe harbor instinct.

Use direct mail and cover an area for leads. A return of 1-2% is successful, make the

appointment and do the mortgage protection pitch and then turn the process into a fact

finder and a two call close. No other mortgage protection insurance salespeople are

doing it and it makes you stand out. Plus you will be cumulating clients instead of policies.

It is how you build a business and a profession instead of always needing the next sale.

Be a professional and not an amateur by doing something everyone else will not do. Plus

regardless of how you are currently selling nothing makes you sharper than 5-6

appointments a day with new sees, plus it makes you think on your feet.

Financial Planners…Ask the Question!

The most important question to ask your potential financial planner is very basic but

almost no one asks it. It should be the one of the first things you ask someone who is

handling your money. Who else pays you?

Financial planners fall into two basic categories:

Fee based and fee only. A fee based financial planner can charge a fee for their services

and can also make a commission based on their recommendations. This should be a red

flag and one which needs to be totally and completely disclosed. The planner should ask


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you the questions necessary to make any sound recommendations. This is a very basic

approach to the business relationship and one required by any sound approach. With

these questions a sound solution should evolve to help the client complete their financial

goals. The question is why are the recommendations being made and are the

recommendations being made are the recommendations at an arm’s length? Any

recommendation made by a fee based planner can also provide compensation for the

planner.

A fee only planner is just that, fee only. A fee only planner will develop the plan and

attempt to provide the client with the solution for the desired goal. The planner is paid a

fee for their plan and their advice just as you would pay your doctor or attorney. It is

clearly and arms length approach.

How do we protect ourselves against advice that is in the planner’s best interest instead

of yours? Ask? Ask the planner if they are receiving additional compensation from the

source of the investments. Make certain you are fully disclosed of all aspects of fees and

expenses that your account is subject to.

Which is better, fee based or fee only. Common sense would dictate that the lower the

fees the better but that is not always the case. Ask for references and ask the planner for

their view of investment risk and reward. Make certain the plan makes common sense to

you and always ask what happens if you decide to end the business relationship.

A great source of information is the Certified Financial Planner Board of Standards.

www.cfp.net.

Asset Protection with a Medicaid Trust

How do you protect assets in the event of a long term care situation? I am asked what

the difference is between the revocable living trust (RLT) and the irrevocable Medicaid trust

(IT). Are there differences between these types of trusts and how can each be of benefit?

In a Revocable Living Trust, you and or your spouse if you have one, normally act as the

trustees of the trust. The trustee makes decisions about what assets are in the trust and

should assets be removed. The rule of thumb is this… “if you can control or remove the


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asset then it can be attached for long term care expenses.”

Many people like to plan ahead and protect their assets. As people get older concern

grows of losing some or all of their assets to a nursing home and they begin to seriously

plan and consider their options to protect assets. Long-term care insurance may be too

expensive for many people or they do not qualify medically. The other options are these:

Transfer the assets outright to your children or set up an Irrevocable Trust.

There are pros and cons for each choice. Transferring the assets to your children may put

the assets at risk. Your children may divorce, die, owe taxes, be sued, file bankruptcy or be

spendthrifts.

With the Irrevocable Trust you are protecting the assets because whatever amount you

put into the trust is not assessable for your long term care expenses. Your heirs can be

named as trustees and they are not the owners. The trust is the owner of the assets and

these assets are safe from creditors. They can only do what the trust allows them to do,

which is to provide you a designated income.

The best method of using the Irrevocable Trust is to place two major roadblocks that they

simply cannot get through. First, appointing a trustee will remove control of the asset from

you. Generally the trustee is one or more of your adult children. Most of these trusts allow

you to retain control over changes in the trustee so ultimate control of the trust is still

yours.

Secondly, you must limit yourself in the Irrevocable Trust to the income only. Often these

trusts are called income trusts. Generally the assets are placed in no risk investments such

as insurance company annuities or bank CDs. Interest is then removed to provide the

necessary income. Situations occur where real estate such as a home is placed in the trust

and permission to live in the home is granted by the trust. At death, the assets in the trust

are passed through to the beneficiaries of the trust, your heirs.

The trust is used for income but the assets in the trust can be bought and sold. This

allows for control over the reallocation of assets based on needs and market changes and

conditions. The trustee can sell assets and reposition them in a beneficial manner based on


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sound business decisions.

Other benefits that are available to the trust are you are allowed to gift assets out of the

trust. These gifts can be to your children or anyone you desire and they are free to use the

asset any way they wish, even provide you with the benefit of the gift. The last benefit is

the revocation of the trust. If the beneficiaries of the trust agree, the trust can be revoked

and assets placed back under your ownership. This is done in writing and with the

guidance of a legal provider. The IRS must also be notified of the trust being revoked.

Assets can be protected and if a situation occurs regain ownership in the future..

Warning: Never undertake a complex plan such as a trust or other asset protection

plans without legal and tax planning advice. Always ask for a second opinion and make

fully sure you understand all possible implications before entering into any legal

document. Seek competent advice.

Memorize These Annuity Benefits to Sell More Annuities

If you as an annuity salesman take the time to learn these Buzz words you will be in a

position to better explain the benefits of annuities. Everything you say between the

introduction of a benefit and the Buzz word will be forgotten by the prospect. Focus on the

benefits and the ending Buzz words.

Here are the 10 benefits of an annuity followed by the Buzz word to memorize.

1. Tax Deferred Growth. The interest earned is not taxed until it is touched. Your funds

grow tax deferred.

BUZZ WORDS: Tax deferral means tax diminished.

2. Safety. Annuities are among the most guaranteed and safe investments available.

BUZZ WORDS: Annuities are boring, they are safe and secure.

3. Avoid Probate. Annuities transfer directly to a beneficiary without the need for probate.

BUZZ WORDS: Annuities avoid probate; the funds go directly to your heirs immediately

and without delay.


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4. Income. At any time, annuities can change from a savings or accumulation vehicle to an

income vehicle. Annuities can provide an income that cannot be outlived.

BUZZ WORDS: Life time income, income that can never be outlived.

5. Estate Planning. Annuities are used in estate planning to help protect assets in the

event of a long-term care situation.

BUZZ WORDS: Annuities can protect assets.

6. Interest Income. Interest is available for income any time after the first 30 days of the

deposit. The interest can be withdrawn monthly, annually or quarterly. An initial

interest rate of 4.85% (or whatever) is available.

BUZZ WORDS: Remove the interest as income and keep your original deposit intact.

7. Death Benefit. Your beneficiary always receives the full account value from the annuity

immediately.

BUZZ WORDS: Immediate and full value to beneficiary.

8. Fees. No contract fee or sales commissions. I work on a finder’s fee; I get paid for

finding you.

BUZZ WORDS: No fees, no charges and no commissions.

9. Comparison. Interest rates on annuities are usually higher than bank CD’s or other fully

guaranteed products over a longer time horizon.

BUZZ WORDS: Look long term with annuities.

10. Access. Unlike bank CD’s, you have access to your funds during the interest earning

time period.

BUZZ WORDS: 4 Ways to access money, interest, 10%, annuitization and death.


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Now let’s look at the disadvantages and how these BUZZ words will help you sell more

annuities.

Disadvantages of Tax Deferred Annuities

Memorize these and they can also become an advantage. Now that we have the

advantages of annuities discussed what are the real disadvantages? They can’t all be good

reasons and there are certain disadvantages that need to be part of the process.

Penalty for early withdrawal. During the guaranteed period, if you withdraw more than

the contract allows, a penalty is imposed. Monthly interest can be withdrawn, you may take

10% of the account value out of the annuity each month, death ends the contract and

funds are paid out to the beneficiary and you may take the funds out as a “pension payout”

or annuitization for any time period you choose from 5 years minimum to any longer time

period you choose.

BUZZ WORDS: Long term deposits mean long term benefits.

Early Access: Any access to funds in a tax deferred annuity before age 59 ½ can be subject

to a tax penalty of 10%.

BUZZ WORDS: Not for the young but the young at heart.

I have used this simple explanation of annuities for 14 years and it has never failed to

make the points I am looking for. Those benefits are safety, security, etc……… They all add

up to explaining the benefits that can be enjoyed with these wonderful products when they

are used correctly.

Expose the Fees on 401(k)’s

Kiplinger Magazine had a great article recently on 401(k)s and the fees associated with

them. Here is a quote from that article.

If you're like four out of five 401(k) investors, you don't know how much you pay to

participate in your company's plan. You needn't feel like a dunce. New investigations into

401(k) fees show that employers are often in the dark about 401(k) costs, too.


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401(k)s are not the only culprit with hard to understand fees, several other plans and

products have similar issues. But with the movement of corporate America moving away

from pensions and trying to replace their obligations with 401 (k) s I think this becomes a

monumental issue.

Have your clients contact their benefits department and completely understand the fees

they are paying. If they are close to retirement then a 401(k) can be rolled over to a self

directed IRA.

One of the very biggest controversies is revenue sharing. This happens when the

investment company “kicks back” or shares in the fees with the plan administrator. While

this is still legal it is being investigated by the SEC and once that is completed I will bet a lot

of little secrets come scurrying out from under the rocks!

This provides us with a sales opportunity and one where the employee may want to

begin to move to safety and security.

Investment fees and their disclosure are a huge source of sales because so many do not

fully understand what the cost of the investment really is. Full disclosure and full

understanding will win a lot of clients for you.

Kiplinger Magazine is a solid source for information.

FDIC Insurance, What is Insured and What is Not.

I always carry the FDIC brochure with me and hand it out to anyone I think may find it

useful. It has been a great source of relationship building and since banks insured by FDIC

are safe and secure, I am also considered associated with that term.

The Federal Deposit Insurance Corporation (FDIC) insures deposits of all U.S. banks and

savings and loan institutions up to $100,000 per customer in the event of a bank failure.

Retirement accounts are insured up to $250,000.

Accounts that are covered by FDIC Insurance:

Checking account and money market deposit accounts.


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Savings accounts that you can add to or withdraw from at any time.

Certificates of deposit, or CDs, which generally require you to keep funds in the account

for a set period of time.

Accounts NOT covered with FDIC insurance:

Stocks, bonds and mutual funds.

Investments backed by the U.S. government, such as Treasury securities and savings

bonds.

The contents of safe-deposit boxes.

Losses due to theft or fraud at the institution. Generally bank insurance will protect

against this loss.

Errors made in your accounts by the banking institution.

Insurance and annuity products, such as life, auto and homeowner's insurance.

Products that are easy to confuse because they have similar names are money market

deposit accounts and money market mutual funds. Money market deposit accounts are

deposits and are covered by FDIC insurance. Money market mutual funds are funds that

invest primarily in short-term corporate bonds or government securities and are not

deposit accounts insured by the FDIC.

While the basic federal insurance amount is $250,000 or $250,000 on retirement

accounts more coverage can be achieved by maintaining accounts under different

ownership categories such as separate ownership and joint ownership with a spouse or

other family member.

Caution should be used when considering some FDIC insured CDs being offered by

financial institutions or sold through brokers have unusual features that may result in the

FDIC protecting only the principal during the term of the CD. It is possible that the interest

offered could be exempt from the FDIC guarantee.


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An example could be a five-year CD where the interest rate is variable and not fixed and

has a crediting rate tied to equity movement. These products may have no guarantee other

than the original deposit.

Fortunately, bank failures are rare events and because of the FDIC insurance in place

the risk to depositors is non-existence. However, make certain that your bank is insured

and provides you with this protection. A simple inquiry to your bank is an easy way to

make certain. FDIC Helps Sell Annuities

Does Your Annuity Company Have You Over a Barrel?

I like to use this term and provide my prospects with another option for their “in

force” (already issued annuities. It is very basic and it allows me to be of service and to

possibly snag a new client.

What happens when your annuity company keeps lowering the interest rate they are

paying you? Is there any way to fight back? Do you have options?

The answer is yes!

The solution is to always insist your annuity earn the new money rate and to NEVER earn

the old money rate! How do you do it? Can you avoid any tax liability? Once again the

answer is yes, you do have options.

The IRS allows you to transfer your annuity from one company to another without tax

liability providing you access the 1035 exchange.

What is a 1035 Exchange?

The 1035 exchange refers to the section of tax code that allows annuity owners the

flexibility to exchange one annuity for another without incurring any tax liabilities.

A 1035 exchange is most typically utilized when an annuity holder desires to upgrade

their annuity either for a higher interest rate of for better contractual provisions. Under IRC

Section 1035, an annuity contract is exchanged for a new contract, the transfer is

considered a nontaxable event if specific guidelines are met.


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Always make certain your financial advisor or agent checks with your existing insurance

company to see if you may be exposed to surrender penalties. Also make certain you fully

understand and restrictions or surrender penalties you may incur with the new annuity

contract. Make sure that any future improvement of your interest rate is worth the

potential loss of flexibility.

By using the 1035 exchange you can regain control over what interest rate you are

earning and it can allow you to move from a longer term surrender penalty to a much

shorter time period. New products are available in many states that only have a 3 year

surrender penalty. These shorter time periods allow you to move your annuity on a regular

basis to always earn the highest arte available.

The tax basis in your old annuity always rolls to the new annuity. This can provide you

with better options in the future for income options if and when the funds are accessed. As

an example if the original deposit on your first annuity was $25,000 and the annuity had

grown to a value of $40,000 when the original annuity is 1035 exchanged to a newer

contract your original basis is still $25,000. This allows you the benefit of moving your

annuity and keeping your tax liability intact.

The Best Target Market in the World for Annuity Sales

Want to sell more annuities? Want to have unlimited prospects? Want to stop

conservation on transfers? Want to reduce your future service commitments? Want to sell

annuities without concern over the prospect changing their minds?

If you answered yes to these questions, listen up.

The money in selling annuities is selling them to people who have very little money. Think

about it for a minute. Who is after the rich and moneyed prospect….everyone! Look at all

the marketing companies and their slick software programs and their beautiful charts, their

system for converting the prospect to a client. I say this to them…not a chance in the

world, not now, not never.

As a matter of fact, if I find a prospect out of my target market I refuse to talk to them. I

have a specific target market and I only work in that segment. Who is the target market


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and how do we access them?

If you draw a 5 mile circle around where you are right now, you will have more prospects

in that area than you can ever see. Guaranteed!

The target market to work I use is people with limited assets. By definition it is those

with $200,000 or less in available assets. Never go over that formula and you can make

tons of annuity sales. Ask yourself why? Why this market? The answer is simple, this

target market needs the benefits annuities provide. Safety and guarantees plus he

contractual features that only annuities can provide.

Then do this…never take money from a bank for an annuity! Never! Help your clients

get the best rate possible for their bank deposits. So what money do you move to

annuities?

Easy, take the money invested in risk categories. Take the money over invested in the

stock market and being managed by the stock broker. Take the easy money.

Most brokers will over invest this category of client in risk and moving a portion of it back

to safety and security makes great sense to your prospects and they will truly appreciate it.

Here is a very easy way of determining the portion of

assets to be in safe secure allocation.

Begin with the number 100

Subtract their attained age (example) 75

Difference is 25

The 25% is the portion for risk and the 75% is the portion for safety. This very simple

formula is easy to understand and easy for your prospect to visualize.

Sell annuities for the benefits they provide and it becomes an easy way to attain the best

clients in the world.

Use The Formula, Your Prospects Will Understand


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A Workable Approach to Selling Index (Equity Linked) Fixed Annuities.

The constant sell on “how much you can make” on indexed annuities is backward.

When you sell on yield you are only in the position of an order taker. Order takers must

constantly find new and better “gimmicks” to try and move business based on the hot new

product. You see this all the time with FMO Groups who constantly dangle new products

and better and higher commissions in front of us.

Just think of the number of emails you receive in a day from these marketers trying to get

a contract from you. I say this is backward and is an old boring way of selling.

Try a new approach. I sell annuities based on safety and security. I compliment this with

a full and total explanation of the benefits the client can enjoy with annuities. If the

subject of returns needs to be addressed I sell it this way.

“Mrs. Jones, 100% of your funds are fully guaranteed and are totally safe and secure.

“The only this that is at risk is your yield.” Since the yield on your EIA is linked to an

outside source we have no way of knowing what that return will be. The reason we are

choosing a return linked to the (S/P 500 Dow etc.) is so your future value might reflect the

cost of inflation.

Mrs. Jones, have you looked at the price of gas lately?

If you focus on the benefits and reemphasize the only thing at risk is the yield you will sell

more and limit your future service obligations. Always The Benefits, Never The Yield.

Knowing How to Name a Beneficiary Can Provide You With Future Sales…Be

Careful….This is a Great Tip!

Three years ago I had a couple from California relocate to Olympia and were referred to

me from an existing client. They owned three annuities, one of which was out of surrender

fees.

As most Californians do, they had placed their annuities in a RLT (revocable living trust).

The RLT was the owner and the beneficiary. Coming from California the trust was imbedded


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in their mind as an essential need. I exchanged the annuity which was out of surrender fees

to a newer more modern product. They insisted on the Revocable Living Trust being both

owner and beneficiary. Even though I mentioned it wasn’t necessary, they insisted.

The Revocable Living Trust can be very popular with many older seniors and seems to be

a vehicle which allows them to get their affairs in order, sort of a “nest” organizing need.

Mr. Jones died and the annuities were all released from surrender fees. Naturally Mrs.

Jones wanted to roll them over to her and I thought here is an easy $300,000.

The big problem, the trust being the beneficiary meant the funds could not be rolled over

without exposure to tax liability. Mrs. Jones could not 1035 them to her own tax ID

number.

Their son got involved and told his mother that since they

were exposed to taxes, she should move her funds to the bank

and select a shorter time period than offered through our

products.

Without the continuation of tax deferral I had to agree with

them and I had no defendable argument.

WARNING: If you have clients in trusts consider moving them

out to individual spousal beneficiary so you can roll over future

tax liability to spouse.

Continued Tax Liability Means Continued 1035 Rollover Business For Us And Control Over

Tax Deferral For The Client.

How Bonds Can Help Our Annuity Sales. Learn These Points and Become Informed

Bond Summary Points. There points are meant to only be a partial piece of the

information puzzle. Try to learn all you can and use these points only as basic information.

Bonds are guaranteed by the issuer of the bond.


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Annuities are guaranteed by the insurance company and each individual state. In the

modern history of annuities (90 years) not one penny has been lost in an annuity. This

includes the Great Depression.

The daily redeemable value of a bond changes constantly, what if money is needed for

illness, other needs or death, the bond will only guarantee the face value at maturity

and that could be 30 years.

Annuities always have the face value available (options available).

Municipal Bond Failure

Municipal bonds do fail, Orange County, Rose Garden many others. Current failure rates

for the past 10 years has be ½% of bonds issued

Municipal Bond Taxation

Income on yield of municipal bonds is not federally or state taxed but…the income

counts against the taxable limits on social security!

High Yield Bond? High Risk?

High Yield Bonds are corporate issued bonds. The higher the yield generally means the

higher risk. Moody’s will disclose ratings and Morningstar will show the bond rating of

bonds in mutual funds. Look and be informed. What is the real yield if a bond were to

fail in a mutual fund?

Bond Funds to Annuities, an Easy Move.

Look at the mix of ratings and risk/reward. Morningstar has the info for you. If the

money is important and needs to always be there then bond funds cannot guarantee it.

A very easy move when you show the fees that are being charged in the fund as well as

the calculated yields after the fees.


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Debentures and Notes:

Debentures and notes are the lowest form of corporate safety; they are guaranteed by

the good name of the issuer and are always LAST in a liquidation situation. Download

the prospectus and show your prospect the risk disclosed.

Callable Bonds Let Them Screw You!

Bond issuers can change the rules if it fits them! If interest become more favorable for

the bond issuer (they go down) the bonds will be called and reissued at a lower rate. If

interest rates are higher then the bond issuer will not call them and the bond holder will

get lower interest than is available from other new bonds. If the bond holder wants

higher rates they will have to sell the bonds at a discount and suffer a loss. (Plus

commission to sell).

Bond Strategy in an Annuity….YIKES!

The only time this would ever be considered if we have a time record of decreasing

interest rates and the best estimate is they will continue to decrease for at least a year.

Very difficult decision and I say avoid and use the fixed rate instead. If you find an

annuity with a bond strategy today, the account will have lost value. Good sales

opportunity.

Bond Ratings sell Annuities.

·Let Morningstar or Moody’s make this sale for you.

The Prospectus, a GOLD MINE.

·Use the issuer’s prospectus to disclose risk and reward. Any prospectus can be

downloaded, here is one I use. http://www.zia.com/products_t/Primary/

Primary_SalesSupport.html

How can Bond Yield be ZERO?

·Easy, buy a bond in the secondary market and pay a premium. Calculate the yield to call

and the yield to maturity. The formula is enclosed or more fun can be had by having


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your client call the broker and have the broker do the calculation. Great Fun!!!!!

Premium, Discount and Annuity Sales!

·If a bond is sold at premium it means the prospect paid higher than issue price and so

the yield will be lower than the original interest rates. So move the funds to an annuity

if safety and security is important.

·If a bond is purchased at a discount then the owner will receive a higher than the issued

interest rate. Explain that when interest rates begin to increase the profit they have

made will evaporate. Sell the bond, take profit and move to a guaranteed product.

Bonds are our Best Source of Annuity Revenue, Why?

The value of bonds will change every second of every minute of every hour of every

day.

·Annuities can only increase.

·If safety and security is important well……..you can figure that out.

Here is a Fresh Sales Idea Regarding Stretch IRAs

I call it, “GENERATION SKIPPING IRA”.

When you talk to a prospect and there are several assets (stock portfolio, real estate

something like that) including IRA is available you might consider this.

The real estate and the stock portfolio will pass to the heirs without income tax liability

because it is a “step up” in basis. This means the children could sell these assets and have

no income tax liability based on the value of the asset at the time of death of the parent.

What about the IRA?

Ask the prospect is he has ever heard of a Generation Skipping IRA? I guarantee he never

has because I invented the term! It is still a great hook to open up conversations with the

prospect..


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the grave. Show them this and add more benefits as you think of them.

There are several sources for illustration software about Stretch IRAs, the very best one I

have found is from Financial Independence Group. www.figmarketing.com

Instead of using the term stretch use the term “generation skipping”. It provides a more

visual explanation of the benefit.

This Is a terrific use of the benefit an IRA provides. Think outside the box and this will

make you sales.

If You Advertise in Newspapers, TV or Radio, Consider Going Negative

How do you buy toothpaste? Is it because Colgate protects you with fewer cavities or

because Crest has been shown to be effective in preventing tooth decay? What about cars?

GM has just the one for you however; Ford claims their car is rated higher than the others.

Have you ever noticed that advertising is either negative or positive?

Negative advertising focuses on elevating an existing concern.

Positive advertising focuses on the positive attributes of a company or product.

How are politicians elected? Do they emphasize their positive attributes? Do they play

above the board and respect their opponents? Do they let the election stand on the

record? No.

They attack, attack, and attack. They harp only the negative qualities of their opponent,

both factual and perceived. The results pay off: Negative campaigning wins elections.

Negativity not only wins elections, it also sells products. By instilling distrust and fear

into prospects, you can offer solutions to their worries. It can make you an enormous

amount of money.

How do you use negative advertising to make money? It's easy. It requires a different

approach than is traditionally used by insurance companies and agents. Traditionally, the

insurance industry focuses on establishing an image that comes across as professional and


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experienced. Agents emphasize how much training they have, how many degrees they've

received, and how active they are in their communities. Typically, such advertising is a

waste of time and money.

Look at your own experience. When was the last time you ran a company approved

advertisement? How many calls did you have from it? We both know the answer to that.

If you had any at all, it's unlikely the results even began to pay for the cost of the ad.

How would you like to run one 4"x5" ad in the local newspaper and have 100 people call

to find out what you are offering? These are people who will come to your seminars or

your information offering and will have a greater interest in your products and services.

Negative advertising is the key to your success. By talking about how good your

company is with the usual claims in insurance advertising, you offer your target audience

exactly what everyone else does: a sales pitch and it’s boring. Your target market doesn't

want a sales pitch. They want solutions to their concerns. Emphasize what they're worried

about, and you’ll grab their attention. By offering solutions to their problems, you offer

them security and peace of mind.

Hooks and getting people interested in solutions is the key. Security and peace of mind

is what is most important to seniors.

Let's look at LTC (long term care) advertising. When an LTC salesperson advertises, what

is the message conveyed?

The many benefits their policies have to offer, company ratings and a nice photo of the

smiling agent….. Who Cares!

The goal is to create fear, uncertainty and doubt using negative advertising.

The following are examples of negative ad headlines used to accomplish this:

Find out why very few seniors need LTC insurance!

Find out what LTC insurance companies don't want you to know!


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How to cut your LTC insurance premiums in half!

·Save 50% on your LTC insurance premiums!

·Don't be a sucker! Find out if LTC really works!

·Get informed. LTC insurance isn't for everyone!

Focus on the negative side to set the hook. The hook leads to an appointment, an

appointment leads to a fact finder, a fact finder leads moves a prospect to a client.

Variable Annuities are Target Market for the Fixed Annuity Salesperson. Learn These

Points to be Able to Inform Your Prospects

1. No Guarantee of Principal: Variable annuities do not protect your principal. And it is

only guaranteed as a death benefit.

2. Death Benefit Cost Deductions: The mortality cost is subtracted from the account value

and is deducted from the performance of the annuity.

3. Fees: Variable annuities have fees for contract expenses, mortality costs, administration

fees and asset management fees. It is very likely that the total fees in a variable annuity

could range from 2% to 3% of the account value. (These fees are always available in the

prospectus, which by law must reveal the fees.)

4. Stock Market Risk: Variable annuities are subject to the volatility of the stock market.

Remember if the market goes down your entire account may be affected..

5. Trail Commissions to the Variable Annuity Salesperson, These Trails are Deducted

From The Account Value: Your agent/broker will receive trail compensation from your

variable annuity, this compensation is deducted from your annuity account value.

6. Taxable on Death: Your variable annuity can be taxable to your beneficiary. Tax deferred

growth becomes a taxable item.

7. Complicated: Fees, market volatility, charges etc. These products can be confusing for

many investors.


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8. Loads: Many variable annuity contracts also have front end loads. It is important to

always read the prospectus.

Let’s go Golfing; this is a Great Tip for Connecting to Bonds.

Using Golf as an Example, It is Easy for Your Prospects to Understand and Relate to.

“Mrs. Jones, think of your bonds like playing golf. Sometimes you make pars, birdies and

bogies. Bonds are much the same way, if you buy a bond at initial issue it is like making a

par. If you buy bonds at a premium it is like making a bogey, you paid higher than par. If

you buy bonds at a discount it is like making a birdie, you bought the bond at less than par.”

This simple explanation really works and lets your prospect understand bonds easier.

Par : Price equal to the face amount of a security; 100%. Par

Discount: A bond sold at less than par. Birdie

Premium: The amount by which the price of a security exceeds its principal amount.

Bogey

Here are some terms about bonds worth learning and being familiar with.

Callable: Subject to payment of the principal amount (and accrued interest) prior to the

stated maturity date, with or without payment of a call premium. Bonds can be callable

under a number of different circumstances, including at the option of the issuer, or on a

mandatory or extraordinary basis.

Call date: The date at which some bonds are redeemable by the issuer prior to the maturity

date.

Call protection: Bonds that are not callable for a certain number of years before their call

date

Call risk: The risk that declining interest rates may accelerate the redemption of a callable

security, causing an investor’s principal to be returned sooner than expected. As a

consequence, investors may have to reinvest their principal at a lower rate of interest.


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Marketability : A measure of the ease with which a security can be sold in the primary and

secondary market without an undue price concession.

Market price or market value: For securities traded through an exchange, the last reported

price at which a security was sold; for securities traded "over-the-counter," the current

price of the security in the market.

Maturity date: The date when the principal amount of a security becomes due and

payable, if not subject to prior call or redemption.

Non-investment grade: Bonds not considered suitable for preservation of invested capital;

ordinarily, those rated Baa3 or below by Moody’s Investors Service, or BBB- or below by

Standard & Poor’s Corporation. Bonds that are non-investment grade are also called high-

yield bonds.

Risk: A measure of the degree of uncertainty and/or of financial loss inherent in an

investment or decision. There are many different risks, including:

Call Risk—The risk that declining interest rates may accelerate the redemption of a

callable security, causing an investor’s principal to be returned sooner than expected. As

a consequence, investors may have to reinvest their principal at a lower rate of interest.

Credit Risk—The risk that the obligor on the bonds will be unable to make debt service

payments due to a weakening of their credit.

Event Risk—The risk that an issuer’s ability to make debt service payments will change

because of unanticipated changes, such as a corporate restructuring, a regulatory

change or an accident, in their environment.

Market Risk—Potential price fluctuations in a bond due to changes in the general level

of interest rates.

Underwriting Risk—The risk of pricing and underwriting securities and then ultimately

not being able to sell them to the investor.


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Yield to Call: A yield on a security calculated by assuming that interest payments will be paid

until the call date, when the security will be redeemed at the call price.

Yield to Maturity: A yield on a security calculated by assuming that interest payments will be

made until the final maturity date, at which point the principal will be repaid by the issuer.

Yield to maturity is essentially the discount rate at which the present value of future

payments (investment income and return of principal) equals the price of the security.

Zero-coupon Bond: A bond for which no periodic interest payments are made. The investor

receives one payment at maturity equal to the principal invested plus interest earned

compounded semi-annually at the original interest rate to maturity.

Investment Grade: Bonds considered suitable for preservation of invested capital; ordinarily,

those rated Baa3 or better by Moody’s Investors Service, or BBB- or better by Standard &

Poor’s Corporation (see "ratings").

High-yield Bond: Bonds issued by lower-rated corporations, sovereign countries and other

entities rated Ba or BB or below and offering a higher yield than more creditworthy

securities; sometimes known as junk bonds.

Debenture: Unsecured debt obligation, issued against the general credit of a corporation,

rather than against a specific asset.

A Very Good site to visit is www.investinginbonds.com

The “Leave Behind” Book

I have always had materials that I leave behind or give to everyone I meet. Over the years I

probably had given out 5,000 of these. They are good advertising and almost NO agent will

make the effort to do this small extra step. This is inexpensive advertising and one which will

pay high dividends for you in the form of future sales and the occasional referral.

When you meet someone say, “I have a copy of my book with me, I would like you to have

it. “ Give it to them and they will be overwhelmed. I have had people come back 7-8 years

later to my office and bring the book. No one gives them things like this. You can say this

“other people have enjoyed and used this information, I am sure it may benefit you also.”


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This very inexpensive piece will build a relationship, increase referrals and future sales. As

a referral piece I have said….”Who do you know who may also benefit from the information

in my book?” Great opener for referrals.

Here is a Great Tip for Explaining Indexed Annuities

I have used this so many times to make my point and to put the concept of Indexed

Annuities at a level most prospects will understand.

It allows them to relate to the concept of how these products can benefit them.

“How would you feel about gambling if you went to Las Vegas and played blackjack?

The situation is if you won a hand you win

the money but if you lost to the house, you

kept your bet, you didn’t lose.

That is what indexed annuities, you only can

increase and you have no exposure to loss.”

Simple And To The Point And A Great Way

To Explain The Benefits Of How These

Products Work.

Sell or Listen: How To Do Both!

Most agents lose tons of sales because they are so obsessed with talking they forget to

listen. They need to tell all about their products features and how great it is. They can

never wait to make their point about how much an annuity can yield.

Product Product Product.

The problem is simple, the prospect just doesn’t care. The features of an insurance

product are secondary and nothing more. Selling product features makes you an amateur.

If you want to be an order taker, go to work for the bank that is what the tellers do, follow

and take orders. Focusing on the “selling of the product” is what bank clerks do, fill an

order.


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How do you set yourself apart? Listen and focus on what the prospect is saying because

they will always tell you how they feel. Once you understand how they feel then you can

provide a product that fits their needs. It is such a simple process, listen and quit talking.

It couldn’t be simpler or more difficult. We all want to talk when in fact listening is a far

better way to sell. By asking simple probing questions that elicit a feeling answer is how

you place the benefits of the product in line with the feelings of the prospect.

A very simple method of “feeling” selling is basing the sale on building the relationship.

This is easily done by using a track to run on. I prefer a fact finder one in which I can follow

a script with the questions in order.

Ask yourself, am I an amateur or am I a professional? Professionals develop

relationships based on client needs and amateurs spend their time talking and selling

products. Professionals focus their time learning their client needs compared to amateurs

who use the sales approach. It is not about the products, it is how the benefits of the

product can fill the needs of the prospect. The more questions that can be asked and

answered will build the relationship the quickest. Listen, Probe, Question… Sell.

The “Back Door Escape Hatch” Sales Tip

This tip really works when you are dealing with a prospect that owns bonds. Almost all

bonds issued in today’s market have a callable feature to them. This means that if the bond

issuer can offer the same bonds at a lower interest rate than they are currently paying, they

will “call” the bonds and reissue.

The risk to the bond buyer is two-fold:

1. The bond owner will receive the funds from their bond being called and be forced to

look at lower interest options because interest rates are lower.

2. If the bond is not called then that would mean that interest rates in general are higher.

The bond owner is then “stuck” with the bond they own and it is paying less than the

prevailing general interest rates.


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When I meet someone who owns bonds with a callable feature I always say this:

“ Mrs. Jones, it appears that you bought a bond with a back door escape hatch. This

means the bond company can change the rules if it is in their best interest”.

I then go on to explain what happens and how she will always be at a disadvantage.

Here is a little more about callable bonds.

Callable: Subject to payment of the principal amount (and accrued interest) prior to the

stated maturity date, with or without payment of a call premium. Bonds can be callable

under a number of different circumstances, including at the option of the issuer, or on a

mandatory or extraordinary basis.

Use the “back door escape hatch” line to help your prospect understand more about their

bond holdings.

Use this Idea to Interest Prospects in Annuities.

I have never sold a Swiss Annuity but I have used it lots of times to interest people in the

benefits of annuities. Most people have no idea this “safe haven” exists and that it is fully

approved by the Federal Government. Knowing about this little secret may help an

occasional prospect desire to learn more about annuities and the benefits they can provide.

Need to Legally Hide Assets?…Here is how!

A completely legal and very much used method of placing assets beyond the reach of

creditors and fully approved by the United States Government is available to anyone. The

minimum amount is $20,000 and there is no maximum.

Why would anyone want to hide assets especially assets that the US Government would

know about? How about frivolous lawsuits? Most people with excess funds can be a target

for them. I suppose divorce and other business reasons could be solid reasons. Investors

who want to diversify may use these products and those concerned about the future

weakness of the US Dollar. These products may also appeal to anyone worried about

market conditions and market volatility.


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The point is this…the US Government fully recognizes this and they have since 1910.

Are you curious yet? Switzerland. But not just any place in Switzerland but in a product

fully guaranteed and fully liquid, “The Swiss Annuity”

Almost no one knows about these products and how they work. Switzerland is on the

gold standard which means that 40% of all money printed by Switzerland is backed by gold.

That is compared to the United States at 1% and the United Kingdom at 1 ½%. Plus the

Swiss Franc is the most solid currency in the world. Not convinced? Then how about this.

Swiss Annuities do not care what denomination of currency you prefer, US Dollars,

Canadian Dollars…it doesn’t matter to them. These accounts have two levels of interest

crediting. The underlying crediting rate is guaranteed at 2% but the market rate is paid on

top and if you don’t like it move your money anytime you wish…no restrictions. Last year

the returns averaged 6.5% on yield.

How about fees? NONE

How about liquidity? 100%..(after 12 months)

How about secrecy? Fully guaranteed by the Swiss Federal Bureau of Private Insurance

It may seem odd to send your funds to Switzerland but in today’s business climate it

could be a lifesaver. Here is more information about Swiss Annuities.:

What else?

The earnings and gains in a Swiss annuity issued by a Swiss life insurance company are

never taxed in Switzerland for non-residents. They accumulate tax-free and, at maturity, are

not subject to any Swiss tax. (There is absolutely no tax reporting to any agency or person

by the Swiss life insurance companies and all transactions are held in strict confidence.

Safety?

Swiss life insurance companies, which are effectively regulated by The Swiss Federal Bureau

of Private Insurance. As a result, there has never been a default or failure of any Swiss life

insurance company for over 140 years! Nothing in this world is absolutely guaranteed. We


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believe the Swiss guarantee is still the best available. Historically, they have proven this to

be true.

A very good source is www.swissadvantage.com. Also this important message: Never

Give Legal Advice And Tax Advice Unless You Are Licensed And Authorized To Do So.

Memorize This Short Tip and Use it to Recite to Your Prospects to Explain Risk

The Concept of Selling Risk with Safety and Security can be explained in just a few short

words and it makes a huge impact. Sometimes I will have a prospect ask me why I use an

insurance company instead of another vehicle and this is what I say:

Risk—Risk is the exposure to loss

Loss that is either too important or too great is passed to a risk bearer.

A risk bearer is an insurance company.

How does this equate to your prospect’s important invested assets?

Important money is money that may be too great of a risk for them to assume. Consider

allowing an insurance company to manage their risk through the use of annuities.

Their funds are fully guaranteed and many numerous benefits can be enjoyed from these

products. Sell Safety By Selling Risk.

Here is a Great Tip to Warehouse Future Sales: “Passive Marketing Income”

Wouldn’t it be great if you could get your hands on a list of orphaned policy holder for

annuities or life products? Create your own list! Here is a tactic that will stack up future

business from prospects and clients – sale or no sale.

Compete for “agent of record” on policies that have the ability to generate future

commissions. You’re in the house anyway and it only takes 10 minutes at most. You have

nothing to lose.

Step 1: Once you have done an accounting of a prospect or clients assets via the fact

finder, earmark insurance policies and annuities that you are not the agent of record on.


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Step 2: Ask your prospect if they are satisfied with the service they are getting from their

agent. The vast majority will tell you they never hear from them. Let them know that based

on the service you will give them it would be greatly to their advantage if you were the

agent of record on their annuity and life policies. Let them know that the original agent

looses no renewal commission, etc.

Step 3: The benefits to you Mrs. Jones will be…

“As your new agent of record you will receive a monthly newsletter. Show them a copy

of the newsletter

Offer to look at the policy now and point out what the other agent did not or set a time

for review.

Review beneficiary designations – eliminate future tax issues especially on qualified

money.

All your policies under one umbrella.

This will ensure regular communication with them about their policies.

Tell them that if they called your references they would tell them how satisfied they are

with you.

Step 4: Earmark these policies for a popup in your database manager on the appropriate

date and now it's time to cross sell your client or prospect.

“Passive marketing income”

Sometimes it’s tough to think two, three, four or five years down the road about getting

business from a missed sale. But when it arrives it’s a welcome surprise, when it arrives

again, and again it’s a plan, and a fine reward.

Multiply the future value of your database:

The true value of your data base is calculated on the number of clients you have.


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A large data base has the long term affect of reducing of the cost per sit-down with new

sees.

Your database will grow faster than you ever expect by becoming the agent of record on

orphaned policies.

·Calculate the actual value of each new “agent of record”. If one out of ten prospects or

clients allows you to become the agent of record, before long you will be adding an

extra sale per month to your ledger. Do the math.

It's all the little things that you do right in your business plan that make a huge difference

in the long run.

Here is a sample “agent of record” form we use.

AGENT OF RECORD LETTER

I, _______________________ have the following policy/policies with

________________________________________________________,

Policy number(s) __________________________________________

Hereby designate:

Name: ______________________

Address: ____________________

City: ____________, State: ______ Zip: _________

as my agent of record on the above policy/policies. Give this person any Information he/

she may request either by phone, fax, or email. I would like this person to receive copies of

my statements. In the event that the agent of record cannot be changed I still want this

person to be able to access any information he/she may request either by phone, fax, or e-

mail on the above named policy/policies.

Date: _________________ Signature of policy owner: ____________________


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Warehoused Money: A Great Source for Annuities.

How to identify what money is appropriate for an annuity. This Will increase your sales

and stop buyer’s remorse.

The place in your presentation where this is used is when you are suggesting solutions or

your client asks “what would you suggest”.

What is Warehoused Money?

Money that is appropriate for an annuity:

Money that is set aside for and would never be spent for anything other than:

Future health issues

Future income

Or inheritance if not spent for health issues or income

Once you have identified high risk, high cost money, or money in CD’s that is continually

rolled over year after year, it is a natural lead in to transferring it to safety and earmark it

for the 3 issues listed above.

This overcomes the objection of a 10 year annuity – How?

Most annuities have no penalties for annuitization, or inheritance.

This solves the problem of needing a safe investment and annuities are designed for

income and inheritance.

As long as a client has ample liquidity in other areas you have done a good job for your

client.

This also helps identify warehoused CD money for tax deferral.

It also deals with a child’s concern about putting Mom or Dad’s money in an annuity.


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This can also be a form of self-insuring for Long Term Care. You should calculate your

prospects actual exposure based on:

Married or single

Male or Female

The average long term stay in a nursing home

Current Medicaid rules for your individual state - Use the formula: Average Long Term

Care cost minus monthly income times the look back period = financial exposure.

Example:

Average Long Term Care Cost : $5,000 Minus monthly income 2,500 $2,500 Shortfall X 60 months look back = $150,000 Compile $150,000 from a prospects cash assets, (high risk, high cost money or CD money

that’s rolled year after year), and set aside for LTC exposure. The annuity is designed for LTC

income or inheritance if not spent on LTC.

The odds of spending 5 years in LTC are greater than the average stay depending on

whose statistics you use. In addition, men spend much less time in nursing homes than

women. We like to be on time for things and when its time to check out we just do it.

Always:

Do your home work

Identify high risk high cost money by doing a risk analysis for your client via tools like

Morningstar.

Always make sure the client has ample liquidity


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Back to the Basics, the Best Sales Tip You Will Ever Get.

The Secret Every Big Producer Knows and Uses. This Tip is Worth a Fortune to You.

Feeling Overwhelmed with Manuals, Latest and Greatest New Marketing Plans!

Here’s my take on where to begin first. These are the very basics and will allow you to

start selling while you are honing your craft.

We have all heard of how important it is to keep things simple, especially in selling. Back

to the basics is the best selling advice I can ever give you.

Keep it Simple! The basics always work. They give you foundation to build on.

Start with these items!

Focus on a multi-pronged marketing plan that will produce 10 appointments per week,

direct mail, seminars, it really doesn’t matter.

Learn how to properly do a fact finder .

Have an in-home presentation and a plan for when you get there.

Learn case prep – this is your safety net for your marketing dollars – agents who send us

the most case prep do the best – it accelerates any learning curve you may have.

Have a consistent data base management system in place – we will help you with this if

you ask!

Put together a solid Reference List for your prospects .

After you have completed these start digging in to the balance of the training materials.

Sell Benefits Based On The Fact Finder

Here is a Short Tip but One That May Save You a Non-Take.

I have had very few non-takes in my career and for that I am thankful. Is there nothing

worse than working to convert a prospect to a client only to have them change their mind?

In our target market confidentiality is a must. These folks do not want others to know

their business. If you open your mouth and tell anyone you sold an annuity to Mrs. Jones,

you are asking for a non-take.


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It could be an innocent remark to another prospect or maybe even to an agent. If it gets

back to Mrs. Jones, you will lose them. If they are already a client, you will never make

another sale. Guaranteed!

If the sale is in progress but not yet finished, you will lose

it. Guaranteed!

Be quiet and keep their confidence. It is essential. Do

not tell another agent and do not tell another prospect or

client anyone’s private business!

Privacy Will Always Win

Here is a Tip That Has Made Me Tons of Sales.

I have used this for almost 10 years and it is a great way to build relationships with our

target market. It is using a third party informational piece that is both helpful and

appreciated.

In addition to concerns about money in our target market are huge concerns about

health and our own mortality. I like to say that we all need to be proactive and we should

make every possible effort to expand our health as much as possible.

I use the UC Berkeley Wellness Newsletter. It is terrific and it has been in existence a

long time. I carry a copy of it with me and I always carry a blank subscription form. The cost

is $30 a year and well worth it.

I explain to them that we all need to help each other and this is a great way to learn

about all sorts of preventative health information. I have subscribed for 8 years and I

always find something that is both useful and can easily be implemented into my lifestyle.

Here is the secret: It doesn’t matter if they subscribe or not. The simple fact that you

offered it and have shown a different approach will be a quicker path to a relationship.

Here is their website and as an additional bonus their 365 day tips is also offered. I have

bought these and given them out to prospects. A real value and one that is worthwhile and

greatly appreciated. http://www.wellnessletter.com.


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JK Rowling, Copy Her and Sell More Annuities. Great Tip!

What a wonderful career she has had and the reading joy she has given us all with her

Harry Potter series is beyond measure.

Why not copy her, it isn’t that hard and it is a great way to build relationships. I know

there are several marketing companies who will “ghost write” a book for you and put your

name on it. You write a few lines and it is disclosed so you are not an imposture. Lots of

sources for that.

I have a better idea, why don’t you actually write a book? It isn’t hard and you will find

it extremely enjoyable and amazingly easy. Plus it is authentic and it will actually mean

something to you. Here are a few simple tips

Write in generalities, the simpler the better.

Create an outline.

Have at least 12 chapters.

Keep the book 70-90 pages.

Use at least 14 size fonts.

Use the internet for ideas.

Do not plagiarize, simply use the ideas to write your own.

Make sure your picture is on the cover.

Think of a great title that will show you off.

Here is another secret; almost no one will read it! Reading it is not the idea, giving it to

a prospect is the idea!!!!!

When you give a prospect your book you are elevated in their eyes. Where can you go to

get your book published? This used to be a problem but it is no more. It couldn’t be easier.

The internet. Just “Google” self published books and take your pick. They are inexpensive


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and reordering is a snap. Good source is www.xlibris.com.

Want Tons of Referrals From Attorneys for Medicaid Planning Annuity Sales?

It is Easy if You Use This Tool. This is a Great Tip But It Takes Effort.

We all want to sell Medicaid friendly annuities don’t we? I do and I usually sell a couple

of million dollars worth a year only from referrals from attorneys. I will not sell Medicaid

annuities unless it is from an attorney and the attorney assumes the liability.

How do you crack into this market? It is so easy if you just follow a few tips and make a

little effort.

Go to www.elderlawanswers.com and look up your state of residence. Enter into a

database the attorneys registered in your area.

Call the Bar Association in your state and request a list of attorneys in your area who

specialize in “elder law.”

You will probably have less than 20-30 in your target market.

Create a bio about yourself and your services and hand deliver it to each attorney in

your area, be a little creative. Keep it short. While you are in their office ask for a

business card of the attorney you are leaving your bio for. You will not be able to see the

attorney on this visit, it doesn’t matter.

Add the email address to the database of your list of attorneys.

Each month look on the internet for an article about Medicaid planning and annuities.

There are tons of them.

Split your data base so each attorney hears from you only every 2 months.

Write a note to the attorney with your business card attached and say this written in the

column. “Dave, I saw this article and I thought it may be of interest to you.”


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At the same time you are mailing the hard copy send the attorney an email saying you

forwarded to him an article that you saw on Medicaid planning. Sorry it had to be hard

copy. Make certain your name and your company name is on the email. Make certain

your phone numbers are on the email. Plus do this: Select a dark blue color and select

font size 14 from your browser or word processor. Never send your note as an

attachment. Keep it short. Very Important!

This will take you less than 15 minutes a month and it will pay off with tons of referrals,

but it takes a little time.

A few other things.

Attorneys like to outsource work to their assistants. That’s how I think they work. The

same will go for you as an agent, they will outsource the case to you and they will still

assume liability.

·Attorneys want the billable hours and want you to take care of details.

Never sell a Medicaid annuity without written instructions from the attorney.

·Go to an occasional Bar Association Meeting, these are usually held in a hotel and if

you call the Bar Association they will put you on the mailing list.

·Attorneys work in business suits and ties and you will need to do the same.

Once an attorney gives you a referral they will give you all their referrals. Work for it and

earn it, the dividends will always pay.

At Christmas time, send a nice gift to the attorney and wish him a happy holiday.

Nothing expensive but something they will remember, like a bottle of red wine. (Red is

best).

Most agents will never do this because of fear of being in a situation where they do not

feel equal. I think that is wrong and I always look for situations where I can do things other

agents will not do. This is one of those things where being different will provide you with

that extra $50,000 or so in income that you have to do very little for.


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Using US Treasury Bonds to Help Sell Annuities

It is in your very best interest to understand and learn about US Treasury Bonds. They

are terrific tools as sales assistance in selling annuities.

Why?

Because there is no risk with US Treasury Bonds. They are safe and secure.

What are annuities? Aren’t they safe and secure also? Are they as secure as US Treasury

Bonds? Nothing on earth is as safe as US Treasury Bonds so if that is the case, how does

that help annuities.

Like this. Both are very safe but there is a difference and it has to do with evaluation.

How much can you sell your US Treasury Bond for prior to maturity? A little background:

Treasuries fall into three basic categories:

·Bills: up to 26 weeks to maturity ·Notes: 2, 5 and 10 years ·Bonds: 30 years

Bonds are now sold in only 30 year terms with interest paid every six months. At the end

of the term your bond matures and your funds are returned to you.

The question to ask is this:

What happens if your life is interrupted do to death? Illness? Need for funds? If you

must sell your bond prior to maturity it would not be worth what you paid for it! It will be

worth either more or less depending on general interest rates on the open market.

The only time you will be guaranteed the return of your funds is at maturity. 30 years is a

long period of time and well beyond the time horizon of many of our target market.

What is the time horizon on our products? Less. And our products are always fully

guaranteed to return the full deposit in a shorter time period.


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Ask your prospects; do you think you will need these funds within the next 30 years?

If that isn’t enough then add this:

If you die, your beneficiaries will have to continue your original 30 year time commitment

with US Treasury Bonds. This of course is not true with annuities. At death the full account

values are available 100% for your beneficiary.


How about the need of entering a nursing home? Do US Treasury Bonds allow you

access to your funds in the event of needing a nursing home? No! Do annuities? Yes.


Are US Treasury Bonds exempt from

Medicaid spend down? No! How about

annuities? Yes! (they can be based on

certain conditions.)

Use US Treasury Bonds to help explain the

benefits of annuities, makes an easy move

to them. Here is a good website to learn

more. www.savingsbonds.gov

Agents Are Not Allowed to Use Their State Guarantee Fund to Sell Annuities,

But……

This is the law in most states and penalties can be severe if the law is violated. I urge you

to ask your department of insurance for direction. But in my state you can do this and

almost no agent knows this.

When an annuity is in force you are allowed to tell the client about the State Guarantee

Fund.


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At delivery time or after the annuity is in force, we are able to fully explain this

guarantee benefit.

I usually way say this:

“Mrs. Jones, prior to you buying your annuity I was not allowed by state law to tell you

about the guarantee fund but now it is issued I can explain this additional benefit to you.

Your annuity is guaranteed by the insurance company that issued it and also there is an

underlying guarantee through our state. Here is a brochure published by the state

explaining how this underlying guarantee can affect you.” (I get the brochures from the

state department of insurance).

You add it as an added piece of information and it is appreciated by your client.

Please make certain you fully understand your state’s position on this. So far every

state I have asked has agreed that once the annuity is issued it can be explained. Please

ask your state department of insurance for information and clarification.

Brokerage Statements, Sitting Ducks…

When a prospect gives you a brokerage statement to review always ask for specific

months. The months you want are:

January April July October The reason is this. If your client is paying a

management fee or assets under management fee it

will be shown on these statements.

The fee is an annual fee but is paid on a quarterly basis. It will show on the account

distributions section. Look for it and make certain your prospect knows about it.


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I always make the point that this fee is totally voluntary and can be changed at any time.

Sometimes I will write a note for the prospect cancelling the fee. Most people do not know

or remember that they are paying this fee.

Voluntary…Don’t Volunteer. Never pay fees that are not of value to you and make certain

your prospect knows!

High Yield Bonds are Great Source of Annuity Sales. A Tip That Will Sell

Millions of Annuity Premium for You!

Bond mutual funds that purchase corporate bonds generally fall into two categories:

Corporate High Yield Corporate High Quality The difference is the risk of the bonds held in the mutual fund. This can be used to sell

against the Corporate High Yield category. A simple method is to ask Morningstar for a

bond breakdown of the rating of the bonds in the fund. It is available and it is free.

By using the 3rd party approach to what the prospect owns allows us to illustrate to the

prospect their possible risk factor. Most “Corporate High Yield Bond Funds” will have a

large percentage (usually 50% or more) of BB ratings or lower. Morningstar will disclose

these ratings in an easy to understand form. I always leave it with my prospect.

I sometimes say this: “Mrs. Jones, I wonder if you remember the term junk bonds? Well

the bond industry reinvented themselves and they are now called corporate high yield

bonds.”

A great term to remember is this: High Yield Means High Risk!

Learn to gather this information and make certain your prospect knows exactly their risk

factor.


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He Won the Nobel Prize, How About Quantum Annuities?

Albert Einstein was ahead of his time. He revolutionized the thinking of physics and his

theory beginning with the breakout year of 1905 is still the basics of quantum physics

today, over 100 years later. When Einstein is remembered for his work it is almost always

E = mc², the theory of relativity. However I think a more interesting part of Einstein’s life

was his view on compound interest.

Albert Einstein called compound interest is "the greatest mathematical discovery of all

time."

The Power of Tax Deferral

Compound interest allows the account to grow by earning interest on the original

investment and any accumulated interest. Here is a generally accepted definition of

compound interest.

Interest which is calculated not only on the initial principal but also the accumulated

interest of prior periods. Compound interest differs from simple interest in that simple

interest is calculated solely as a percentage of the principal sum.

Compound interest is offered by banks and saving institutions and is also referred to as

Double Compounding. The downside is when the interest is credited to your account it

comes with tax liability. The interest is credited but it is taxable.

Insurance companies offer products that allow for tax deferral and compounding but

under certain situations can defer also the tax liability. These products are called annuities

and life insurance. As long as the accumulated funds are left untouched, the tax liability is

deferred.

This concept is referred to as Triple Compounding.

If some of your savings are placed in an annuity, the benefit of tax deferral provides for:

Interest on your principal Interest on your interest and


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Interest on your tax savings…because your interest is free from current income tax in an

annuity, it can all continue to compound instead of being withdrawn for tax payments.

Is that all there is? No! There is also Quantum Compounding.

Quantum Compounding is building on Triple Compounding by adding features only

found on certain insurance company annuities.

Bonus of 5% to 10% of funds deposited, immediate and guaranteed Long term care benefits Lifetime income provisions Annual moveable minimum guarantees Complete safety, full guarantees against loss and risk Enhanced benefits for the beneficiary Probate avoidance

Consider the use of Quantum Annuities for added benefits and added value to yourself and

your clients.

·The Biggest Long Term Care Selling Secret Ever…

Selling LTC insurance is a very tough world. No one wants to buy it and no one likes

paying premiums. There is a secret about selling it that no one seems to use.

I have wondered why LTC agents always think everyone needs to buy a policy. Why do

well all need LTC insurance. Here is a small secret, we don’t.

Not everyone needs to buy this protection! The decision should be based on one of two

reasons:

·To protect income for the well spouse To protect assets for the heirs If a prospect buys for any other reason they are making a decision only based on

emotions and not on black and white issues. That is what many LTC agents rely on, working


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on emotions. I have sat through their presentation and watched how a prospect is

manipulated based on “scare tactics.”

I think LTC should be purchased based on a formula. That formula should take into

account the income and assets of the prospect. If there is sufficient income to allow the

well spouse to continue their life than the only risk is the use of assets planned for another

use.

The formula should be this: Add up the income of each spouse and the total exposed

assets of the joint ownership. If there are sufficient assets to pay the difference between

the income of the ill spouse and the LTC centers expenses then the need for insurance may

not be necessary.

If the difference can be paid for a period of 60 months then all other assets can be

repositioned with the well spouse, friends, family or even strangers.

Here is secret number two: You only need to pay for your care for five years. Your

income is subtracted from the LTC cost and you use assets to make up the difference.

Everything over that amount needed is transferred out of the ill person’s estate.

Now for the unused secret for selling LTC insurance; Secret Number One.

Tell your prospects and your clients they do not need it. Their decision should be based

on a formula and you supply the formula which is a fact finder. By completing a fact finder

you will uncover all the assets and be in a position to make other advice. You will win

clients and you will do the best job for your prospect.

Tell them they do not need to buy LTC; do the formula and do the right thing. By telling

prospects they do not need it you will sell more than ever because the decision will be

based on facts and not emotions. That makes them a client and not just another sales.

Sell More LTC By Telling Your Prospects They Don’t Need It.


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A Completely Overlooked Product That Makes Huge Sense.

Hedge funds? Mutual funds? Stocks? Bonds? Real Estate?

No, none of those but this product has many features and benefits other options only can

drool over.

The product? Single premium whole life! This product provides enormous benefits and

has a huge tax advantage over many other choices. Here is how it works.

Single Premium Life is the product of choice when a lump sum of cash from a savings or

retirement account, an inheritance, an insurance payout, a gift or even a lottery windfall is

available and life insurance coverage is essential.

Depending on the age of the insured person, a one-time premium payment typically

secures several times that amount in coverage immediately. Over time, the amount of

protection can increase until it is many times greater than the amount paid into the policy.

The policy has a self completing clause which is the death benefit. It earns interest or

shares in dividends and the accumulated cash value will grow tax deferred.

At anytime the full amount of the cash value can be accessed by the owner and at

anytime the policy is available for policy loans. The death benefit is fully guaranteed and

the policy’s cash value is also fully guaranteed.

At anytime the policy can be converted to an income stream with numerous options for

payout available.

The tax advantages? When the policy pays out as a benefit to the beneficiary, it is paid

as a tax free benefit regardless of how much the contract has grown! As an example, if

$100,000 is deposited for a 70 year old female, the beginning death benefit will be

$155,000. Based on assumptions, that is scheduled to grow to $225,000 in only 10 years.

These Benefits are Available:


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Single Premium Whole Life is a Winner…..

These benefits are available:

Tax deferred growth Full access to your money Tax free benefits to your beneficiary ·Income options

Huge benefits for money that needs to kept safe and secure and yet provides tons of

future options..


tricks of the trade: tips from an insurance agent · tricks of the trade: tips from an insurance...

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