TAX RETURNS-YOUR VERY BEST PROSPECTING TOOL
By Mark Milbrod, CLU
Partner, Agent Support Group-April 2017

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It is April, spring is around the corner, baseball season is kicking off and of course, as American as apple pie, our favorite Uncle has his hand out for his piece of that pie.  Tax season is upon us and with it comes our best prospecting tool, THE TAX RETURN.   

As we are waist deep in tax season, what better time to remind ourselves of the countless sales opportunities that arise out of this time of year.   The best part is that with the focus on taxes, all of our clients are aware of the things that affect their financial lives. Whether its retirement plans contributions, annual gifts, charitable contributions, etc., it is all fresh in their minds. From just those few items, I’m sure a few sales opportunities come to mind.

As stated above, a tax return is probably our best sales prospecting tool.   As financial professionals, where else can you get a roadmap that leads you directly to all facets of someone’s finances?   

Here are some examples of line items on a standard 1040 Tax Form that can lead you to where potential sales opportunities exist: 

1.     Dependents – knowing how many dependents raises the question to whether there is enough life insurance in force to protect those family members who are reliant on someone. For younger dependents, the college planning conversation usually starts. 

2.     Taxable Interest – See where this income is coming from.  There can be a more tax efficient way to invest funds. 

3.     Business Income – knowing where business income comes from can start the conversation for business succession planning, key employee coverage’s, etc. 

4.     Qualified Plan Contributions – this opens up the retirement planning conversation.  Are they maxed out in qualified contributions? What about retirement goals? Perhaps some supplemental non-qualified vehicles could be appropriate. 

5.     Partnership/S-Corp Income – knowing if there are partnerships, perhaps buy-sell planning can be in order. 

6.     Social Security Benefits – are they receiving SS benefits?  Do they need it?  Perhaps a more efficient use of those funds can be the answer. 

7.     Capital Gains – where are their assets? Is there a better use of those assets? 

8.     Medical Expenses – knowing what their medical expenses are can open up the Long Term care conversation.  Do they have any or what assets would they tap into if they had an LTC event? 

9.     Interest Paid – mortgage interest paid can tell you more about their home.  For clients older than age 62, a Reverse Mortgage can be an option. 

10. Gifts to Charity– if someone is charitably inclined, you can discuss the leverage of life insurance for legacy gifts.   

As you can see, there are a number of sales opportunities that exist by utilizing the 1040 Tax Form as a roadmap.  The examples above are just the tip of the iceberg.  By using this approach, you can start conversations with your prospective and current clients.  In addition, centers of influence, such as CPA’s and Tax Attorneys are excellent sources to have this conversation with.  

With tax season upon us, there are excellent opportunities that will drive new business.  I have been using this approach for many years to huge success.  At ASG, we have tools designed to help you with this approach to marketing.  Contact us today so we can guide you through the process and navigate you through this road map provided by our favorite uncle.

Mark Milbrod

About Mark Milbrod

Mark’s Barks Blog is authored by Mark Milbrod, the Principal of our New Jersey Sales Office. Mark brings almost 30 years of experience to his insightful commentary on the insurance industry. Through his Blog posts, you will learn about new sales trends, be educated on selling techniques and overall, think differently about your role as an insurance professional.

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