Note to Advisor: The bullet points below are detailed out with explanations for you on the 2nd page of this document.
<DATE>
Dear, <Name of warm prospects>,
As a previous workshop attendee, I would like to extend to you a personal invitation to enhance your knowledge concerning several specific financial issues. I will be hosting a workshop entitled “Fire, Floods and Taxes” in the local area. This interactive workshop might prove to be beneficial to you in developing skills needed to ensure financial security. Topics discussed will include:
The most valuable asset you can own (hint: it has nothing to do with your investment portfolio or rate of return)
How you could increase the protection on that asset within 24 hours of the workshop, at no cost to you
A mathematical formula that could help prevent you from running out of money
Examples of how to get more income from the same amount of money
How you can reduce LTC, auto and home insurance costs by as much as 15% – 20%, without changing the policy but simply utilizing your assets differently by using U.S. Treas. Reg 1.72.(You may want to jot down your current costs for the illustration)
You’ll receive helpful tip sheets and checklist you can take home that will put more money in your pocket starting tomorrow.
Please keep in mind that I’ve never covered this information in a workshop you previously attended with me. I hope you will accept my invitation and reserve your seat today for one of the two workshops scheduled for:
If I could ask for just one thing? Please bring a friend or couple with you. In fact, you may bring up to two friends. Of course, this get together is informal and we’ll get some great info to both of you. There will be no “selling” or beating your friends above the head and shoulders.
Since we are limiting this to 20 people, preference will be given to those that are able to bring friends with them (it’s a great way for us to get to know important people in your lives as well.)
We will fill up quickly, so please call <NAME> at XXX-XXX-XXXX to reserve your seat today!!
Sincerely,
<YOUR NAME>
BULLET EXPLANATION - AGENT USE ONLY (remove before sending):
The most valuable asset you can own (hint: it has nothing to do with your investment portfolio or rate of return)
Explanation: Home
How you could increase that asset within 24 hours of the workshop, at no cost to you Explanation: P&C Checklist
A mathematical formula that could help prevent you from running out of money
Explanation: SAIL
Examples of how to get more income from the same amount of money
Explanation: SAIL
How you can reduce LTC, auto and home insurance costs by as much as 15% – 20%, without changing the policy but simply utilizing your assets differently by using U.S Treasury Reg. 1.72-4 addresses taxation of the immediate annuities based on exclusion ratio.(You may want to jot down your current costs for the illustration)
Explanation:Use immediate annuity income to pay for auto, home and LTC – exclusion calculation can reduce cost by tax savings
Most people pay their insurance from out of pocket income. This income is taxed at their marginal tax bracket. If they instead put the appropriate amount into an immediate annuity and annuitized it over a 5 or 10 year time period to generate the income needed for the premiums, they could capitalize on the exclusion ratio.
The exclusion ratio would cause only a small portion of the income generated by the immediate annuity to be taxed as interest – the lion’s share would be return of principal. This means that depending on the client’s tax bracket, instead of 100% of the money they use to pay premiums being taxable – more than 90% could be return of principal and less than 10% would be taxable.
By using the method that an exclusion ratio allows vs. paying insurance premiums out of pocket, the tax savings could equate from 0% reduction all the way up to 30% or more reduction of actual out of pocket cost, depending on your client’s state and federal tax brackets.