Taxes…Had Enough?
by Rebel Agent on November 19th, 2008
This was sent to me by a fellow ReBel….
Taxes are a way of life but how could this have happened? Look at these taxes!
Accounts Receivable Tax
Building Permit Tax
CDL License Tax
Cigarette Tax
Corporate Income Tax
Dog License Tax
Federal Income Tax
Federal Unemployment Tax (FUTA)
Fishing License Tax
Food License Tax
Fuel Permit Tax
Gasoline Tax
Hunting License Tax
Inheritance Tax
Inventory Tax
IRS Interest Charges (tax on top of tax)
IRS Penalties (tax on top of tax)
Liquor Tax
Luxury Tax
Marriage License Tax
Medicare Tax
Property Tax
Real Estate Tax
Service charge taxes
Social Security Tax
Road Usage Tax (Truckers)
Sales Taxes
Recreational Vehicle Tax
School Tax
State Income Tax
State Unemployment Tax (SUTA)
Telephone Federal Excise Tax
Telephone Federal Universal Service Fee Tax
Telephone Federal, State and Local Surcharge Tax
Telephone Minimum Usage Surcharge Tax
Telephone Recurring and Non-recurring Charges Tax Telephone State and Local Tax
Telephone Usage Charge Tax
Utility Tax
Vehicle License Registration Tax
Vehicle Sales Tax
Watercraft Registration Tax
Well Permit Tax
Workers Compensation Tax
Not one of these taxes existed 100 years ago…
and our nation was the most prosperous in the world.
We had absolutely no national debt…
We had the largest middle class in the world…
and Mom stayed home to raise the kids.
What happened?
Can you spell ‘politicians?’
Paper Losses….How Arrogant
by Rebel Agent on November 18th, 2008
The stock market goes up and goes down. When it goes up the financial planners and the stockbrokers tell us how much money we have made and how great the market is. The economy is fine and everything will be just perfect….rosy sunny days lay ahead for all of us.
Right?
What happens when the reverse occurs and the market declines? How about a term greater than decline? How about crashing such as it is now? What do the brokers and financial planners who have sold us these great equities say now? Is it real money or is it just numbers in an account?
These downturns are described in a very nonchalant manner, paper losses. A paper loss is really not a loss is it? In reality they are correct in the fact that a loss (or gain) cannot occur until the asset is converted to value. At that time the real value of the asset becomes a hard asset.
Paper losses are not real losses are they? But what if these funds are important? What if your financial future is dependent on this not-real money becoming real?
Is your life affected by paper losses?
Paper loses are not part of my life nor my business. Guarantees that at anytime can be accessed for real value without the fear of loss, that is my world, safety and security. I am not sure how I would ever explain to my client that their losses were only paper losses when I know how much they are counting on these funds.
Arrogance of the securities world caused this mess and the fact that people’s lives were only amounting to paper losses is disgusting.
Legacy Pricing on Cars
by Rebel Agent on November 18th, 2008
I guess I have never really thought about it but when one of the Big Three auto makers produces a car, they have to seta side money for the legacy costs associated with it. That cost is retirement, future medical and other benefits to the retired or future retired work force. This legacy cost is built into the cost of the car.
When you buy any car from a United Auto Workers plant this must be included. The cost? I was very surprised also how much it was.
$1,600.
That means on a $20,000 Chevy, 8% of the cost is set aside for employee future promised benefits. I wondered how this figure is calculated by the KIA company in South Korea. It took a lot of digging and on a consumer website I found it out. At least what it is said to be.
The legacy cost for South Korean workers on every KIA is $6, Yes $6 not $1600! Why are we allowing Korea to sell their cars here without any “Duty?” How can we allow this very unfair advantage? I looked at the Department of Commerce export site regarding cars being exported to Korea from the US. Granted, there are not many that are exported, mostly to US Corporations based there (in 2006 6,000 were exported) but the South Korean Government charges a flat rate of $3,000 for every US car imported to South Korea.
Do you not find this insane? How can we allow this to happen? It is not just the money; it is the insanity of it all.
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As Annuity Sales Surge…..
by Rebel Agent on November 17th, 2008
We love selling annuities. As far as I am concerned they are the very best product to sell and for me a product that I personally relate to. I own annuities and so selling them is an easy move.
But…big trouble coming…
Annuity companies have a huge influx of money right now. People from all walks of life are using them because safety and security is at the forefront of most people’s needs.
Have you pondered where exactly is the money going to be invested by the insurance company for their clients? A huge part must be placed in US Treasuries to make certain that loss of principal is assured. The yield on US Treasuries is in the decline so the actual amount insurance companies are making is also in decline.
Outside of US Treasuries insurance companies have choices for investment but that is almost always corporate bonds. The corporate bond market is in flux due to Wall Street’s volatility and so when clear heads prevail, mostly AAA and AA bonds will be purchased. Since this level of security will be able to pay a much smaller interest rate, once again the overall interest rate earned by the companies with have to decline.
The net effect is our annuity carriers will have to tighten their belt, people will lose their jobs and the company will be leaner….and meaner!
How does this affect us?
With so much money flowing into annuity companies and a reduced choice of investment options, the companies will need to lower their sales cost by reducing commissions to the field force.
Your commissions will go down! Nothing is going to stop it and it will become a way of life and something we will need to deal with as salespeople. So I suggest to you to do the same. Redo your marketing budget for 2009 with an emphasis on quality leads, smart marketing, less gimmicks and a business plan you will follow through on.
You are going to be paid less for what you produce so sell more at a lower cost.
Marketing 101.
Prmisory Notes…..Be Careful!
by Rebel Agent on November 14th, 2008
I wrote about this a year or so ago and now with the economy in the gutter, these are resurfacing. “Too Good to be True” is just that…be careful….a ecent explosion of these notes ahs hit the West Coast being marketed from Canada…..
I 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.
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.
Recession? Depression? Good or Bad?
by Rebel Agent on November 12th, 2008
I didn’t live during the last depression but my parents did. Their stories about how tough it was were vivid and descriptive of a time long ago. We have been told by financial officials and the government that another depression of their magnitude was not possible because of safeguards and oversight.
Now we know that is not true and the government oversight has been superficial at best and we are on the verge of another possible depression. I hope that does not happen and I hope we avoid it.
But is a recession really bad?
Think about it for a minute. What is the negative and what would be the positive of a recession.
When you think about it, a recession should be good for the economy. Mistakes investors and business people made in the boom are corrected because of the change in spending habits and perceived needs of the people. Consumers cut back on spending and savings begin to grow again. Businesses lower prices and offer incentives to find new consumers and lure back old customers. Liquidations and bankruptcies release money from bad investments and make it available for recycling back into new uses. Employees work harder over fear of job security and production increases. A company’s product and strategy will improve as efficiency once again becomes the norm. They either adapt or adjust or they fail.
The economy becomes more in balance and production increases. The toll in real pain is the human factor because many will lose their jobs and many will lose their homes. The balance between what is good for all and the suffering of many needs to always be well balanced.
My hope is the government will restore enough oversight to protect the country from the Wall Street greed that has caused a lot of this mess and yet only be involved enough to allow our free market nature to gain traction and rebound.
It will require a fine balance and a steady hand with an eye towards the full restoration of our economy where the greatest numbers are given the broadest chance for recovery.
Nice Returns….
by Rebel Agent on November 11th, 2008
A recent report on yields from the acknowledged GURU of the indexed annuity world, Jack Marrion shows solid growth. Over a 5 year period the returns were roughly twice what bank CDs were returning.
5.42% compared to 2.78%.
Using the approach of safety and security as the goal, having the extra returns is really icing on the cake. This report would make excellent sharing with your clients and prospects.
The full story is available at this link:
http://www.insurancenewsnet.com/article.asp?n=1&id=100296
Looks Like Serious Trouble….Iron Economics
by Rebel Agent on November 10th, 2008
A recent article in the NY Times reported on the unemployment rates in this country. Current unemployment rates are at a 14 year high at 10,1 Americans. This is the 10th consecutive month the jobless rate has increased with 240,000 more out of work last month. The other issue is that I find astounding is only 1/3 of these people are still receiving unemployment checks. The balance have run out and used their benefits up.
To me this is a very disturbing trend and one which shows the results of our constant outflow of jobs overseas. I mean, why has this happened? Can it be reversed?
I fear the trend we are seeing is one that will continue and will be one that will be with us a long time. The overall problem is the simplest one and the hardest to fix. What is it?
Simple…it is corporate greed and the need to maximize the bottom line. I saw a good example of it the other day in a department store in Phoenix called Dillard’s. The store was huge and part of a large regional chain of department store. I was waiting in “husbandland” and drifted up to the home appliance section. All those pots and pans you know!
I began examining the irons (for clothes) and noticed the top end irons were made in America, their cost was around $90 and they were at the edge of the display so they would be seen first. The same brand also had some lesser models ($45) made in China. Since boredom had set in and the clerk was very interested in helping me buy an iron (do we even have an iron?) I asked what the difference was. Her answer is th answer to it all in regards to unemployment…
The reason we have the expensive and fancier models up front is to catch your attention (which it did) but no one buys these. The lesser cost irons are the ones that sell because they have the same features but in a slightly less fancy packaged look. She explained to me that was done on purpose and the store wanted to sell the lesser cost item because their percentage margin was greater. They made more money on the Chinese made iron than the American made item that has twice the cost!
I could go on but I think you have the picture. We have outsourced all our jobs to foreign production to make a lesser cost product and a greater margin….all based on cost points.
Now our unemployment is well on the way to 12,000,000.
The Ying and the Yang
by Rebel Agent on November 6th, 2008
In China and especially in Chinese medicine, things need to be in balance. Good is opposite of evil, hot opposite of cold, well you get the idea. If you really consider it, you may agree that if things are in balance, things work better. Balance in all things makes your life better. Ying and Yang are to symbolize the sun and the moon in Chinese Cosmology. The idea being that there are two opposing forces active in the universe. Yin exists in Yang and Yang exists in Yin. This is the changing combination of negative and positive, dark and light, cold and hot which keeps the world spinning and creates Chi - the giving life force.
How about annuities, how can they even be included in this discussion. I think there is a fit if you look at the two basic types of annuities: fixed and variable. You think I am nuts don’t you? Not really, think about it.
One (fixed) is positive and one (variable) negative. One has guarantees and no ongoing fees or expenses and the other has them. One offers safety and security and the other offers risk. One requires attention and management, the other doesn’t. One has “sleep” insurance and the other has risk.
The state of balance is key to our lives and our universe. The same is true for annuities, if all these variable annuity companies and salespersons keep pounding these products then to get the universe back into balance we will need to change them all back to fixed.
What a world……China baby.
A Historical Election and an Old John Wayne Story
by Rebel Agent on November 5th, 2008
Whether you voted for Barack Obama or not, everyone should certainly agree that this election was historical. Since the voting rights act of 1965 guaranteed all the right to vote much has happened.
The fact a black man has won the country’s highest office is amazing. I have tons of Republican friends and even though I have been a lifetime Democrat, I suggest we approach reconciliation the way John Wayne did.
This election means to me that we have an opportunity to work more as a group than as divided factions. It shouldn’t be about any one ideology, it should be about what is best for the country and we as the nation as a whole.
John Wayne.
I was 14 when John Kennedy was elected president and I was a devoted John Wayne follower. John Wayne was the zenith of heroes and the one most of my friends and I related to. He was at the top o his career and the biggest box office draw in the country.
For those reasons I have always remembered what he said about Kennedy beating Nixon and becoming president. He said this:
“Well he (Kennedy) wasn’t my man and I didn’t vote for him, but he is my president now and I hope he does a good job” John Wayne quote……
For me I am going to adapt Mr. Wayne’s attitude, Obama is my president and I hope he does a good job. Why don’t you join me?
Direct Mail Leads….Make it Part of Your Marketing
by Rebel Agent on November 4th, 2008
I have always like using direct mail leads. It has been sort of a security blanket for me because I always knew I had someone to see. That type of thinking is weird I am sure but is there nothing worse than a salesman sitting at Starbucks wondering where to go. I have been in that situation and I am sure most of you have also.
I don’t think there is any one direct mail company better than another as long as you can communicate with them and they are honest with their return numbers. My favorite is a firm called ARM. They are based in Texas and are service oriented; at least that has been my experience.
Here is their contact number:
Lou White
America’s Recommended Mailers, Inc.
1680 S. Hwy. 121 Bldg. B | Lewisville, TX 75067
Ph: 800.992.2722 | Fax: 972.420.1900
Email: Lou.White@armleads.com
Web: www.armleads.com
I always like to know what their return ahs been based on their mailer. Be sure and ask, they keep those records. Also, if I wanted to sell annuities (which I do) I wouldn’t necessarily mail the annuity mailer, I would mail into my target market. Mailing to someone about probate may get a higher return and they still should be the right age for our products. Be sure and play around with lots of options….they will be happy to help you.
Remember, thee leads are nothing more than an opportunity to open a relationship and it is based on numbers. So order enough and be consistent and one last thing….don’t base your total marketing on DM leads, make itjust a part of your marketing effort.
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Good and Useful Information Source
by Rebel Agent on November 3rd, 2008
I saw this on one of my favorite web sites and thought it might make a good handout for prospects at seminars. Be sure and give www.eldelawanswers.com the credit for it. Their site is always full of solid, informative and well worth bookmaking. They do allow for you to sign up for their monthly enewsletter which is valuable.
Tax Deductions for Assisted Living Costs
If you or a family member lives in an assisted living facility, you know that assisted living costs continue to rise every year. But did you know some of those costs may be tax deductible? Medical expenses, including some long-term care expenses, are deductible if the expenses are more than 7.5 percent of your adjusted gross income.
In order for assisted living expenses to be tax deductible, the resident must be considered “chronically ill.” This means a doctor or nurse has certified that the resident either:
- cannot perform at least two activities of daily living, such as eating, toileting, transferring, bath, dressing, or continence; or
- requires supervision due to a cognitive impairment (such as Alzheimer’s disease or another form of dementia).
In addition, to qualify for the deduction, personal care services must be provided according to a plan of care prescribed by a licensed health care provider. This means a doctor, nurse, or social worker must prepare a plan that outlines the specific daily services the resident will receive. Though not required by law, most assisted living facilities prepare care plans for their residents.
Generally, the full cost of housing and meals as well as some personal care services are deductible. The expenses are not deductible, however, if they are reimbursed by insurance or any other programs.
Residents that are not chronically ill may still deduct the portion of their expenses that are attributable to medical care, including entrance or initiation fees. The assisted living facility is responsible for providing residents with information as to what portion of fees is attributable to medical costs.
In some circumstances, adult children may also get a tax deduction if their parents or other immediate family members (including in-laws) live at an assisted living facility and qualify as their dependents. The family member must be a U.S. citizen or legal resident or resident of Canada or Mexico and the adult child must provide more than half of the family members support for the year. Even if the adult child is not paying more than half the family member’s total support for the year, the child may still be eligible for a deduction if he or she contributes to the family member’s support according to a “multiple support agreement.” The adult child must pay more than 10 percent of an individual’s total support for the year, and, with others who also support the resident, collectively contribute to more than half of the resident’s support. All those supporting the individual must agree on and sign a Multiple Support Declaration