womens and multi cultural markets bsmg event
TRANSCRIPT
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Welcome to BSMG’s Spring Kick-Off EventHow to Address the Women’s and
Multicultural Markets to Grow your Practice
500 South Main Street | Providence, RI 02903 | 800.343.7772
April 30, 2015
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Welcome!
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Change
New Opportunities
New Mindset
New Strategies
Increased Success
Have an Open Mind, Think Big
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• Women control more wealth. Today, women control over 51% of the personal wealth in the U.S. That percentage is estimated to rise to 67% by 2020.
• Women outlive men. Women, on average, are outliving men by five to six years. That means that, for all of your married clients, chances are you will someday have a single individual as a client: the wife.
• Women outnumber men as graduates. Women account for 57% of bachelor’s, 60% of master’s, and 52% of doctoral degrees today
• Women are growing as breadwinners. Between 2007 and 2010, the number of women earning over $100,000 grew by nearly 17%, compared with just 2.3% growth for men. And nearly four out of 10 working women outearned their husbands in 2009
• Women lead household purchases. Women make approximately 80% of family household buying decisions, including — importantly for you — whom to hire for financial advising services.
• Women don’t have a preference for working with a male or female advisor
*Fidelity Investments: “Maximizing a Major Opportunity: Engaging Female Clients”, 2012
The Women’s Market
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Suly Salazar-Layton
Responsible for the strategic direction,
workshop development and implementation
of the Practice Management program.
Thousands of producers have learned tools
and strategies that have helped them take
their businesses to the next level and
increase their profitability. Native of
Colombia and the co-lead for the Genworth
Hispanic Forum, Suly believes passionately
in helping advance the Hispanic community
at Genworth and in Richmond. She is a
graduate of Yale University.
Director of Practice Management
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http://www.youtube.com/watch?v=oTqiVOpu5KQ
Connecting with Women & Couples
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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Company Confidential ©2011 Genworth Financial, Inc. All rights reserved.
Connecting with Women and CouplesGrow Your Business With Your Most Profitable Clients
FOR PRODUCER/AGENT USE ONLY. NOT TO BE REPRODUCED OR SHOWN TO THE PUBLIC.163700 04/28/15
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10
Important Information
This workshop is for informational purposes only and is meant to illustrate some of the best
practices that may make building your business more effective These practices are based on
Genworth research and the real life experience of the individuals interviewed. The use of
these practices or tools is strictly voluntary and is not required by the Genworth companies.
The information provided is for your own practice management purposes.
Always follow your company’s guidelines, policies and procedures. Also follow any policies
and procedures regarding review and use of third-party templates, social media, creation and
distribution of client and prospect materials, hosting of client and prospect events, offering
giveaways or prizes, and your firm's employment process.
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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Today we’ll help you focus on …
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY 11
- Helping you expand outside of your comfort zone - Finding prospects and creating interest - Executing change in your practice
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Women’s Economic Power
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Earning more money Inheriting more money Controlling more money
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The opportunity
Connecting With Women And Couples FOR BROKER/AGENT USE ONLY
1. U.S. Census, Educational Attainment, 2014; 2. LIMRA, U.S. Consumers Today: Women and Men, 2014; 3. Growing Under the Radar, American Express, 2012; 4. Catalyst, Knowledge Center, Buying Power, 3/2013
51% of Bachelor’s degrees 1
56% of Master’s degrees 1
40% of working wives out earn husbands 2
57% of couples are dual earners 2
84% control or share in decisions 3
65% of global consumer spending 4
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The value of advice
1. U.S. Consumers Today: Women and Men, LIMRA, 2014
Women are 30% less likely to have relationships with financial professionals1
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
But recognize the value of professional advice
Over half feel that their need for professional advice has increased
30%
> ½
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Veto power
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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The Future of Retirement Income Study, Genworth, 3/2015
94%of women said that it was important for a financial
professional to get to know them as a person, to understand my needs, values and goals
Importance of relationships
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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QuickTime™ and aYUV420 codec decompressor
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Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
From The Expert - Stereotyping
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Couple Single, Widowed, DivorcedExisting or new client
Thoughtful approach to a new audience
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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A Different Buying Process
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
More deliberate decision making process
Questions
Criteria Influencers
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Communication Styles
22
Her Big Picture Is Not His Big Picture
QuickTime™ and aYUV420 codec decompressor
are needed to see this picture.
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Marti Barletta Author of Marketing to Women, and of PrimeTime Women
www.trendsight.com
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Don’t solve their problem before they have articulated it
Best practice: Let the client talk 80% of the time
W.A.I.T.
Listening to understand
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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Consider asking …
Changing the questions
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Instead of …
Here’s what I want to accomplish today.
What do you want to get out of this meeting?
How are things going for you? If there’s one thing you could change about your life, what would it be?
What are your financial goals? What does being financially OK look like to (each of) you? What do you NOT want to happen?
Do you have any other questions? •Do you have any questions I haven’t fully answered?•What information do you need to feel comfortable taking the next step?
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Women are financial decision makers
Make them part of the conversation
Be aware of a woman’s veto power
Consider communication differences
Fact
Action
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Putting It Into Practice
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Women make referrals 3 times more than men
Research
Loyalty
Referral
Decision
http://www.investmentnews.com/article/20130716/FREE/130719934; viewed 9/2013
Loyal Referral Sources
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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Give her something to talk about
Ask three questions designed to open up opportunities
Help your clients develop the confidence to spot your ideal client
Conduct appreciation events and educational seminars
4 Best practices to help find new clients
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Give her something to talk about
In what ways do you go above and beyond for your clients? Where have you made an extra effort?What services have you provided that were unexpected?
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Sorry for the loss of yourbest friend
Give her something to talk about
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Three questions to generate introductions
1 If there is one thing I could change about how we work together that would improve our relationship, what would it be?
2
3
What do you like best about working together?
When you speak with friends who have a financial concern or challenge, would you feel comfortable helping them by introducing me to them?
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Help current clients spot ideal clients
Define your target clients Identify how you serve this group especially wellHelp them understand your process
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Women recommend
Exceed her expectations
Give her something to talk about
Define your referral request
Consider timing of request
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Putting It Into Practice
Fact
Action
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Holistic approach How does product help her life?Answer her questions Help her feel knowledgeable
Creating interest
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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Running out of money in retirement1
1. U.S. Today’s Consumer: Women and Men, LIMRA, 2014; 2. Genworth Beyond Dollars, 3/2013
83%
Women’s top financial concerns
Connecting With Women And Couples FOR BROKER/AGENT USE ONLY
Maintaining standard of living1
63%
Having to rely on family2 65%
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Guaranteed income for lifeCannot outlive your money
All guarantees are based on the claims-paying ability of the issuing insurance company.
Annuities speak to her concerns
Connecting With Women And Couples FOR BROKER/AGENT USE ONLY
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Protect against the cost of a long term health eventIn-home care as well as nursing home careShe won’t be a burden to her children
Long Term Care Insurance benefits
Connecting With Women And Couples FOR BROKER/AGENT USE ONLY
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Help maintain family’s standard of livingPortability of individual policy Estate planning to benefit heirs
Connecting With Women And Couples FOR BROKER/AGENT USE ONLY
Life insurance to address her concerns
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Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Putting It Into Practice
Women want to understand how her
concerns are addressed
Use a holistic approach
Think in terms of her concerns
Avoid technical language and jargon
Fact
Action
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Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Take Aways
3 Things you can do with your clients …
or at home …
1. Listen to her stories
2. Practice “The power of the pause”
3. Increase communication touch points
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Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
Action Items To Consider
1. Review top 10 client list and create an action plan
to strengthen your relationship with her
2. Identify 5 key female clients who are influencers
and can be your advocates
3. Define your personal elevator speech so that your
clients know what to say about you
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43
Important Information
This workshop is for informational purposes only and is meant to illustrate some of the best
practices that may make building your business more effective These practices are based on
Genworth research and the real life experience of the individuals interviewed. The use of
these practices or tools is strictly voluntary and is not required by the Genworth companies.
The information provided is for your own practice management purposes.
Always follow your company’s guidelines, policies and procedures. Also follow any policies
and procedures regarding review and use of third-party templates, social media, creation and
distribution of client and prospect materials, hosting of client and prospect events, offering
giveaways or prizes, and your firm's employment process.
Connecting With Women And Couples FOR PRODUCER/AGENT USE ONLY
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• Growing Demographics• Rapid, Systemic Change• Huge Opportunity for advisors to pursue an
underserved, growing market
The Multicultural Market
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ex-KGB operative Igor Panarin in 1998 forecast the future fragmenting of the United States circa 2010 into four Divided States
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Mike ThaxtonWith more than two decades of experience closing large, complex life insurance cases, Mike has substantial expertise with advanced case design/presentation strategies and effective premium financing options. More than 100 times a year, Mike speaks to financial services professionals across the U.S. on topics related to planning for foreign nationals, estate planning, and business planning. He is a Certified World Class Speaking Coach and teaches financial services and other sales professionals how to develop and deliver powerhouse presentations that generate sales. Prior to joining Transamerica, Mike was a successful independent life insurance broker and a leading individual life sales producer with three different brokerage organizations. Mike has worked extensively with small-business owners, high-income professionals, and high-net-worth individuals in the U.S. and abroad. He earned a Bachelor of Business Administration degree in accounting from Texas Tech University.
Vice President Global Link Solutions
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500 South Main Street | Providence, RI 0290 | 800.343.7772
Planning for Foreign NationalsA World of Opportunity
Michael Thaxton, Vice PresidentTransamerica Global Link Solutions
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Non-Residents Purchasing U.S. Real Estate
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Where are Foreign Nationals?
New York
West Palm
Beach
Washington DC
Seattle
Los Angeles
Sacramento
Las Vegas
Phoenix
Dallas/Fort Worth
Boston
Colorado Springs
Denver
Minneapolis
Houston
Detroit
Sarasota
TampaOrlando
Miami
Atlanta
Philadelphia
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• 11% of native born Americans have at least 1 foreign born parent1
• 12.9% of U.S. population born in another country2
• 90 Fortune 500 companies had at least one immigrant founder3
• More than 40% of the 2010 Fortune 500 companies founded by immigrants (18%) or their children (23%)3
• 24% of all engineering and technology start-ups have at least one immigrant founder serving in a key role4
1Nation’s Foreign-Born Population Nears 37 Million. United States Census Bureau. http://www.census.gov/newsroom/releases/archives/foreignborn_population/cb10-159.html2 US Census, 2010. https://www.census.gov/newsroom/pdf/cspan_fb_slides.pdf 3 The “New American” Fortune 500. June 2011. http://www.renewoureconomy.org/sites/all/themes/pnae/img/new-american-fortune-500-june-2011.pdf4One quarter of U.S. tech start-ups founded by an immigrant: study http://www.reuters.com/article/2012/10/02/us-immi-grants-startups-study-idUSBRE8910I020121002
Changing U.S. Demographics
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• 187,380 Ultra-high net worth individuals ($30+ million net worth) control $25.8 trillion of wealth1
• 65,579 HNWI live in North America2
• 54,170 HNWI live in Europe2
• 43,726 HNWI live in Asia2
• 15,230 HNWI live in Latin America2
• 3,373 HNWI live in Mexico2
• As of EOY 2012 $2.7 trillion of foreign direct investment in the U.S.3
Scope of Opportunity
1The States With the Most Ultra Rich Americans. Business Insider. http://www.businessinsider.com/states-with-the-most-wealthy-people-2012-92 The Wealth Report 2013 . Knight Frank. http://www.knightfrank.be/library/PDF/Wealth%20Report%202013.pdf 3 Foreign Direct Investment in the United States. http://selectusa.commerce.gov/sites/selectusa.commerce.gov/files/documents/2014/january/2013-12- 31_selectusa_report_-_fdi_in_the_united_states.pdf
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Why Consider the Foreign National Market?
• Growing market today• Foreign Nationals face unique U.S.
planning challenges• Significant need for information on
strategies and planning
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What they don’t know…
A survey of immigrants to the U.S. with a net worth of $10 million or more found:
Survey Question Asked% Who
Answered Yes
Before emigrating to the U.S. those who sought advice as to the consequences of acquiring a U.S. residency for U.S. gift and estate taxes
34.5%
Obtained advice for making gifts of non-U.S. property prior to coming to the U.S.
10.9%
After emigrating to the U.S., those who sought tax advice 49.6%
Of the above group, those who sought advice on U.S. estate planning that could minimize estate taxes
6.8%
Source: “Clueless,” Trusts and Estates, December 2003
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Understanding Needs
Foreign Nationals fall into two categories:• Resident Aliens• Non-Resident Aliens
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Resident Aliens
• Foreign National with permanent U.S. home
• Worldwide assets subject to U.S. estate and gift tax
• Denied certain tax advantages available to U.S. citizens
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Married Couple with Foreign National
No unlimited marital estate deduction
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The Issue
Foreign NationalU.S. Citizen
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The Issue
Foreign NationalU.S. Citizen
Unlimited Marital Deduction
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The Issue
Foreign NationalU.S. Citizen
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The Issue
Foreign NationalU.S. Citizen
No Deduction
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Alternative 1: QDOT
MarkU.S. Citizen
AnnaPhilippine Citizen
Resident Alien
$ $ $ $ $ $ $ $
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QDOT
• No immediate estate taxation• Assets “stuck” in U.S.• Distributions limited to income and
hardship OR immediate estate taxation• Need U.S. trustee, may require bond
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Alternative 2: Life Insurance
MarkU.S. Citizen
AnnaPhilippine Citizen
Resident Alien
$ $ $ $ $$ $ $
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Non-Resident Aliens
• Foreign National with permanent home in another country
• Only U.S. assets subject to U.S. estate and gift tax
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U.S. Estate Tax Comparison
Resident Alien (RA)
Non-Resident Alien (NRA)
Lifetime estatetax exemption $5,430,000 $60,000
Estate tax rate 40% top tax rateMinimum 25% -
Maximum 40% top tax rate
Unlimitedmarital deduction
Only if inherited assets are transferred
to QDOT*
Only if inherited assets are transferred
to QDOT*
Assets subjectto U.S. estate taxes All worldwide assets
U.S. properties,including most
intangible properties**
*Only if inherited assets are transferred to a U.S. citizen spouse or to a QDOT.**Intangible property includes stock in a U.S. corporation and interest in a U.S. partnership
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Non-resident AliensU.S. Gift and Estate Situs Rules
Type of property transferred
Subject to U.S. Gift
tax
Subject toU.S. Estate
tax
Real property located in U.S. Yes Yes
U.S. tangible personal property (i.e., cash, jewelry, paintings, automobiles)
Yes Yes
U.S. intangible personal property (i.e., stocks in U.S. corp., interest in U.S. partnership)
No Yes
Ownership interest in a U.S. life insurance policy on oneself No* No
*A gift of a life insurance policy on oneself may be subject to the IRC §2035 look back rule, and therefore may be subject to estate taxes if included within the decedent’s estate.
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Alternative 1 … Complicated
Tangible Property Intangible Property
Gift to Heirs
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Alternative 2 … Simple
Life Insurance
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What They Don’t Know
$60,000
Non-Resident AlienResident Alien
$5.43M
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Why Planning Is Important
Eduardo• Mexican citizen and
resident of Monterrey• Purchased second home
in Texas with spouse
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U.S. Estate Tax Exposure
home in Texas
estate tax liability in 2015$1.1M
$3M
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Estate Erosion
Death in 2015
Tentative TaxLess Credit
($1,145,800) $13,000
Net Taxes ($1,132,800)
Net U.S. Assets $1,867,200
Estate Erosion = 38%
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Life Insurance
• A simple solution• Internationally
competitive
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Why Foreign Nationals Buy Life Insurance
• Pay estate taxes• Legacy Planning• Business Planning• Asset protection• Wealth transfer and estate equalization• Facilitate business planning• U.S. products are often considered superior to
those of other countries• U.S. products can be structured to offer
substantial tax advantages
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You’d Better Be Careful …
• Income Tax Treaties• Estate Tax Treaties• Gift Tax Treaties• U.S. Legal Issues• U.S. Tax Issues• Home Country Legal Issues• Home Country Tax Issues
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Ley Sobre El Contrato de SeguroMexico’s Insurance Contract Law
• Mexican citizens are legally permitted to own insurance contracts issued from other countries.
• Generally, MICL provides that amounts paid by insurance companies to insured or insured’s beneficiaries are exempt from Mexican income tax.
• January 2007 tax reform stated that the intention of Article 109 Section XVII of MICL is to only exempt from Mexican income tax amounts received from insurance institutions authorized to do business in Mexico.
• Insured should be physically out of Mexico when contracting for insurance products with institutions not authorized to do business in Mexico.
• Entity ownership advisable for significant transactions.
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Foreign Account Taxation Compliance Act
• Part of HIRE Act passed March 18, 2010.• Implementation began July 1, 2014.• Original intent was to give IRS the ability to determine
the ownership of U.S. assets in foreign accounts.• 88 Model 1 Agreements and 13 Model 2 Agreements
have been signed or agreed to be signed.• Potentially impacts Americans who live abroad or have
business interests abroad.• Potentially impacts foreign nationals who have
financial accounts in the U.S.• Substantial penalties and prosecution possible for
violations.
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Why Plan for Foreign Nationals?
• Large, growing demographic
• Special financial planning needs
• Resident Aliens– worldwide estate
• Non-resident Aliens– U.S. estate
• No unlimited marital estate deduction
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Next Steps
• Review your book of business
• Reach out to contacts that match the client profile
• Strengthen and build your referral network
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Look At Your Existing Business
• Immigrant clients?• Clients with immigrant
spouses?• Develop a champion
client
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7 Sources In Your Neighborhood
1. Nearby colleges/universities?2. Nearby hospitals or military bases?3. Nearby multinational corporations?4. Talk to realty firms for leads5. Align with immigration and/or
international tax attorneys and CPAs6. Network with ethnic business associations7. Get referrals from existing Foreign National clients
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Top 5 Reasons to Place with Transamerica
1. Access to Advanced Marketing experts• Attorneys and Certified Financial Planners providing
consultative support and case design
2. Dedicated international underwriting team• Established in 1998–deep understanding of landscape
3. Bilingual Marketing Materials• Spanish and Chinese language materials
4. Foreign Nationals Connection Website• Hub for information, sales ideas, and materials & forms • Viewable across mobile, tablet, laptop, and desktop• www.transamerica.com/foreignnationals
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5. Depth & Breadth of Product
• No product limitations• Guaranteed products
available• Very competitive premiums• Close more business
• Best underwriting risk class generally available
Top 5 Reasons to Place with Transamerica
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Transamerica’s Available Resources
Dedicated International Underwriting Team
Foreign National Connection web site
Contact Advanced Marketing
(877) 238-6758
Foreign Nationals Team
Marketing Tools Support
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Transamerica Life Insurance Company (“Transamerica”) and its representatives do not give tax or legal advice. This material is provided for informational purposes only and should not be construed as tax or legal advice. Clients and other interested parties must be urged to consult with and rely solely upon their own independent advisors regarding their particular situation and the concepts presented here.
Discussions of the various planning strategies and issues are based on our understanding of the applicable federal tax laws in effect at the time of presentation. However, tax laws are subject to interpretation and change, and there is no guarantee that the relevant tax authorities will accept Transamerica’s interpretations. Additionally, this material does not consider the impact of applicable state or foreign laws and regulations or income or estate tax treaties between the U.S. and other countries upon clients and prospects. Clients should consult with and rely on their own legal and/or tax advisor to determine the consequences, if any, of owning or receiving proceeds from a Transamerica policy.
Although care is taken in preparing this material and presenting it accurately, Transamerica disclaims any express or implied warranty as to the accuracy of any material contained herein and any liability with respect to it. This information is current as of February 2015.
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Thank You!
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Thank You to our Sponsors
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Write Down One Important Take Away!