Pinney Presents: Van Mueller Newsletter for October 2017
We look forward to the Van Mueller newsletter every month. It's chock-full of sound bites, sales tips, and eye-opening statistics. Here are our favorite parts of the October 2017 edition. We're sharing the full introduction, and 2 of the 7 monthly sales ideas. If you like what you read, we encourage you to click here and become a subscriber.

Reprinted with the author's permission.

October, 2017 – 7 Ideas and Views Newsletter by Van Mueller

Van Mueller

In September I was fortunate to be one of the speakers at the Taggart Symposium at Brigham Young University in Provo, Utah. It is my third or fourth time being one of the participants of the symposium and every time I always learn more than I share. I believe it is one of the finest insurance and financial services meetings in our country. I am always astonished that more agents do not attend. This year, the speakers were exceptional.

Overwhelmingly, the meeting focuses on sales. The psychology of selling, how to get more appointments, how to inspire more referrals and quality sales presentations are the focus. It is an enormously beneficial meeting.

Everyone who is in driving distance must attend next year. I would guarantee that this meeting is worth your time.

One of the speakers, Kurt Mortensen, shared important information about persuasion. Do you think that would be beneficial to a sales career? He shared amazing information with the attendees that could be used immediately upon leaving the meeting.

Also speaking at this meeting was a man whose ideas and information I have been using my whole career. His cassette, (yes I said cassette) series, “Sales Magic” was one of the important turning points in my career. Kerry Johnson has been training professional sales people for decades. He did not let anyone down at this meeting. What Kerry does that is so amazing is he shows us all that sales skills are a science that can be learned. You don't have to have “natural ability” to be a great sales person. If you can learn and practice the skills that great sales people employ you can also become a great sales person.

You don't have to have “natural ability” to be a great sales person. If you can learn and practice the skills that great sales people employ you can also become a great sales person.

Kerry Johnson's information has been and continues to be an important part of my sales skills.

The speaker who was the most valuable to me at the Taggart Symposium was David McKnight. David is the author of the Amazon bestselling book, “The Power of Zero”. David and I joked about his book. I have been using the ideas in his book for over 30 years; before he even wrote the book. One of my best selling ideas he shares in his book. I even learned a different way to look at a particular tax bracket that I had never considered before.

I was blessed to be included with this amazing group of speakers. I had a ball. I learned, I grew, I got new ideas and I got better.

You must not miss next year's meeting.

If it's okay, I would like to focus on David McKnight for several pages. I believe he is one of the three most important people in our industry right now because what he teaches is so vital and so pertinent to the issues Americans will face in the coming decades.

Americans will face dramatically increasing requirements for retirement and health care expense both before and during retirement.

Longevity will find many Americans living way too long with not enough income.

Longevity will find many Americans living way too long with not enough income.

More and more Americans will require long term care and assisted living. This will put financial, emotional, physical, intellectual and spiritual pressure not only on the people receiving the care, but also on the people giving the care. By 2030, 57 million Americans will be caregivers. What do you think will happen to their quality of life?

Additionally, our federal government will require more and more money for Social Security, Medicare, Medicaid, the Affordable Care Act, Homeland Security, Defense, Infrastructure and countless natural and man-made disasters.

Our state and local governments will require ever increasing funds for pensions, healthcare and services of all kinds including fire and police protection. Ask every person you come across these questions:

1. Do you think taxes will be higher in the future? Yes, or No?

2. Do you believe with all of these promises governments have made that taxes could be way higher in the future?

Then, set it up; make a bet with them. Say to them, that they have had advisors, insurance agents, accountants and attorneys and you will bet not one of them has ever asked you the questions I am about to ask you. Are you ready? They say yes. Here's the final question.

3. Do you want to pay those taxes?

We never ask, we just assume. If they answer the above question with a “No”, you are on your way to a sale. Why? Because you are one of the few people who can provide products where they pay the taxes now and then NEVER have to pay income taxes on that money again.

You are one of the few people who can provide products where they pay the taxes now and then NEVER have to pay income taxes on that money again.

That's where David McKnight and the “Power of Zero” come into play. Americans' discretionary money is decreasing dramatically and will diminish even more in the years ahead.

How will they pay for protection? How will they pay for healthcare? How will they save for retirement?

This will all become almost impossible if Americans' discretionary dollars continue to disappear.

What if you could open the door to dollars at little to no cost compared to what they would cost in the future? What if you could leverage those dollars so you could use the same dollars to provide protection and retirement?

Would Americans consider that to be important information? You and I both know they would.

I am able to find enormous amounts of dollars using the ideas David travels extensively to share.

Let me be very clear: If you want the success you dream about in our business. If you dream to help as many Americans as possible, you must familiarize yourselves with the three most important people in our industry.

If you dream to help as many Americans as possible, you must familiarize yourselves with the three most important people in our industry.

THEY ARE ESSENTIAL TO MY SUCCESS: And they will be to yours as well.

The three most important people in our industry are, and in no particular order because they ALL must be used to fully benefit from what they teach, are Ed Slott, Tom Hegna and David McKnight. They must be the foundation of your career. What they teach is vitally important.

Ed Slott is a CPA who does not sell product. He has been fully vetted by Public Television. He is quoted in the Wall Street Journal, New York Times, USA Today, etc. He is considered one of the foremost experts on IRA's and qualified money in our country. He has created an organization of Master Elite Advisors that he trains to give quality advice about IRAs, 401ks and other qualified money.

Ed states emphatically and consistently that the number one benefit provided by the current income tax code is “Cash Value Life Insurance”. You should and must know everything you can about what he teaches.

Tom Hegna is so important to our industry. He teaches all of us that the focus for a successful retirement should be on income and not assets.

Tom has also been fully vetted by Public Television. He appears all over the country training agents on how to provide incomes Americans can depend on in retirement.

When our industry needs a defender to contradict the misinformation promoted by media and or other industry experts we call upon Tom Hegna. There is no greater advocate for life insurance and annuities than Tom Hegna. Again, I repeat if you do not have his information you do not have all the tools you need to serve the American people.

There is no greater advocate for life insurance and annuities than Tom Hegna.

Finally, David McKnight helps tie this all into a bow and allows the American people to maintain control of their income tax liability while finding inexpensive money to leverage and use in a more efficient manner.

David helps us to find the money to take advantage of the ideas that Ed Slott, Tom Hegna and David McKnight implore us to share with our prospects and clients.

I have always extolled every audience I have come across with this question. What three words are the secret to success in our business? Aren't they “FIND THE MONEY?” When we can show the American people ways to fund ideas that create successful retirements by using little or zero taxed dollars, it becomes almost impossible to say no.

Why wouldn't everyone want to pay their taxes now when they are historically low and then transfer all their money to the future with no additional income tax liability when everyone agrees income taxes will be dramatically higher to pay for all the aforementioned responsibilities governments will face down to road?

Ask these questions over and over. Assume they didn't hear you the first four times you ask them about taxes.

Have a little fun with them. Ask them, “May I tease you a little bit? Is there someone at the Internal Revenue Service that you are so madly in love with that you want to leave them a whole bunch of your money?”

You don't have to have “natural ability” to be a great sales person. If you can learn and practice the skills that great sales people employ you can also become a great sales person.

It will get them thinking. They will start asking you questions. This is going to be a major issue. Wouldn't it be spectacular to be at the forefront of this issue?

I just want to get in a couple of more thoughts before I begin with this month's ideas.

I say this often, however I believe it needs to be repeated over and over again. Agents and advisors who do not have a fundamental understanding of how income taxes work will never approach the success they could achieve and the benefit they could provide if they did.

I believe financial professionals should read the 1040 instructions every quarter from cover to cover paying particular attention to these pages.

Page 30: Calculations if Social Security is taxable
Page 39: Under 65 standard deduction
Page 40: Over 65 standard deduction
Page 41: Personal exemptions
Page 102: Income and outlays for government
Page 103: Tax rate schedules

They you must read the same instructions for your state income tax. This is important: In some states Social Security is taxable, in some states it is not. Some states have income tax while others don't.

Let me give you the simplest example of using the 1040 to help customers and yourself at the same time.

Here's an example: I have many clients who live in 900 square feet to 1,500 square feet homes who receive $25,000 to $30,000 of Social Security. They save money out of that Social Security income. They have $100,000 or $200,000 or $300,000 in IRAs. They arrive at age 70½ and have to take a required minimum distribution of around $4,000 on $100,000 to $12,000 on $300,000. They don't want or need the money. They actually are upset that they have to withdraw the money. This is where it gets fun. Say this, “I understand, but may I ask you a very important question? Is there someone at the Internal Revenue Service that you are so madly in love with that you want to leave them, rather than your family a whole bunch of money?”

When the government eliminated inherited IRAs, non-spouse beneficiaries could easily pay 30 percent taxes on that money: A much higher percentage is more likely. 30 percent of $100,000 is $30,000. It is $90,000 on $300,000 on IRA or 401k money. What if you could easily eliminate the income tax liability on that money forever? Would you do it? May I ask why you are not currently doing it?

This is where a simple understanding of the income tax laws benefits your clients and you. If they are over 65 their standard deduction and personal exemptions add up to $23,400. They can make that amount of fully taxable income and pay little or no income tax.

In the above example, the RMD ranges from $4,000 on $100,000 to $12,000 on $300,000. That means they could take from $11,400 to $19,400 of fully taxable money from their IRAs and pay little to no tax on that money. Using the smaller withdrawal ask them this: If you and your spouse live for 20 more years and statistically you could, you could eliminate the income tax on $228,000 of fully taxable money. If you don't do this your children will pay a minimum of $68,400. Do you really want to give the Internal Revenue Service $68,400 of your hard earned money or do you want your family to have this money?

That is a small example. Because income taxes are progressive you can go all the way to the 28 percent income tax bracket.

That brings me back to David McKnight. I never went beyond the 25 percent bracket in the past. I was concerned that if a flat tax came to fruition, clients would be upset if they paid higher taxes. David showed me that if a client goes all the way to the 28 percent bracket, that because of the difference between the 25 and 28 percent bracket is only 3 percent, my clients can eliminate taxes on another $79,550 for an additional 3 percent. If we believe taxes will be higher in the future, shouldn't we take advantage of that opportunity?

On $251,000 of fully taxable money, you pay around $52,000 in income taxes. That is somewhere between 20 and 21 percent. If your client waits until they die, that number could range from $75,000 to $125,000. Shouldn't our prospects and clients be made aware? Won't the repositioning of the money eliminate future taxes, provide a leveraged death benefit that would offset any income tax paid and even provide long term care benefits.

You must ask all your clients about this. David McKnight, I owe you one.

Let's get started with the newsletter.


We're passing on two of the newsletter's monthly sales ideas - every issue of the newsletter contains 7 ideas, plus one idea for the Canadian market. Subscribe to get them all.

Idea #2: Let's Party Like It's 1999

Headlines have been portraying income gains for Americans as new records. However, if you read the entirety of the information some appalling facts come into play.

First, the new income figures just exceeded the previous high which occurred in 1999. That's right; it took a 9 year market expansion for incomes to return to the level they were at in 1999. What happens to those incomes when the next economic disaster occurs?

Another thing; if you are married with two children and you income is $59,000 are you rich? Obviously not. Finally, incomes have only increased because of increases in women's income. Today, men are making less than they did in 1973. Can you believe it?

Why must you have this information? You use it to inspire every grandma and grandpa in America to leverage their money. If they don't leverage, reduce income tax liability and keep money in the family, how will their children and grandchildren afford healthcare? How will they save for retirement? We must give our prospects and clients reasons to take action.

Title: Real Male Earnings Below 1973 Level: Median Household Income Improvement Entirely Due to Rising Female Earnings (Mish Talk, September 12, 2017)

Title: Census: Median U.S. household income tops 1999 peak, hits $59,039 (Chicago Tribune, September 13, 2017) a7f11b85f6c0

Title: Median household income up to $59,030 (USA Today, September 13, 2017) 655310001/

Title: New Record for Household Incomes (The Wall Street Journal, September 13, 2017)

Idea #3: Here Comes Another Housing Crash

Many people are making the same mistakes they made during the last economic crisis in 2007 and 2008. Housing is in a bubble. Not just here, but all over the globe.

People are again thinking of housing as an investment for retirement. Let's be clear: Long term, housing is a mediocre investment. If the government reduces or eliminates the tax preferences for owning real estate we will see a crash. If we see an economic downturn and people can't service their debt or taxes, real estate will crash.

It never seems to do it at a convenient time. It waits right until you are ready to retire: Then, it crashes. These are assets that are not very liquid. If people don't have the money to buy, you will never sell.

Get these articles. Advise people to build more liquidity. That will actually help their real estate weather a serious downturn because they won't need that asset at the worst time to need it.

Title: Opinion: This veteran investor nailed the last housing bubble and now expects another (MarketWatch, September 16, 2017) 2017-09-15

Title: Are we headed for another housing collapse (New York Post, September 2, 2017)

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Did any of these ideas resonate with you? Have you used any of them in talks with clients? Tell us in the comments!