Re: Identifying Clients’ Financial Protection Needs

by Pat McEvoy Life Sales Consultant

Last month, we introduced you to the "8a" sales strategy in this column. The idea centered on placing the characters "8a" in a photo frame to generate conversation about the "Taxable interest" line item found on the 1040 U.S. Individual Income Tax Return. We’d like to expand this line of thinking by providing you with a tool available to producers for using a client’s completed tax return to find products suitable for fulfilling their retirement goals and objectives.

With tax day looming, now is the perfect opportunity for you to sit down with clients and review their most recent tax return. In doing so, a tax form overlay kit can highlight specific areas of the return that encourage forward-looking planning and help your clients uncover solutions for positively impacting their retirement picture. These kits include a detailed guide for using a tax return to identify clients’ asset protection needs, as well as transparent overlays that can be applied to the return to emphasize particular sections requiring discussion.

For example, a client’s dependent information might indicate a need for additional life insurance protection. You can further discuss appropriate beneficiary elections for qualified plans, IRAs and insurance plans. When meeting with high income earners who are maximizing 401(k) and IRA contributions for retirement, you might consider offering products with tax-deferral opportunities to round out their portfolio.

From capital gains to social security income, each of the items highlighted allows you to help clients identify problems and implement strategies to improve their financial well-being. If a client is reporting tax paid for early withdrawals on qualified plans, you may need to review distribution strategies. A self-employed client might evoke discussion about succession planning or various types of insurance needs.

A broad examination of all of these items can help uncover opportunities and possibly help clients reduce their overall tax burden. You’ll also leave clients better prepared for meeting with their CPA or tax attorney. Meanwhile, these conversations can improve your relationship with clients, build trust, and inspire confidence in your ability to meet their needs and achieve their goals. Call your Creative Marketing Sales Consultant today and ask for a tax overlay kit provided by AXA Equitable to get started.

FOR AGENT USE ONLY. NOT FOR USE WITH THE GENERAL PUBLIC. 11535 - 2011/2/7

Agents may not give tax, legal, accounting or investment advice. Individuals should consult with a professional specializing in these areas regarding the applicability of this information to his/her situation.