Steve’s special guest, Ken Davis, CLU, ChFC, CFP, CPA. Ken Davis is the former president of the Phoenix Chapter of the Society of CPAs and has taught continuing education for the Arizona Society of CPAs on life insurance and annuities. AMT Tax unintentionally affects middle class. Some Municipal bond income may trigger the AMT. Tax deferral products can have an impact on lowering taxes for more net spendable income. Social Security and Medicare may be affected by other streams of income or AMT. AXA 1040 Transparency Overlay — use it over a 1040 form to illustrate the client’s need. Lincoln Benefit Life Two Page Tax Summary for 2012 Tax Digest for Producers — this 100 plus pages digest addresses the main issues in tax code that can help you explain basic taxation items and tax favored products for more net spendable income. Marginal tax brackets progressively rise; taxes on social security benefits are not progressive in that the two tier tax levels don’t rise slowly. Deferral products can have an impact on your AGI which in turn may affect social security benefits. Contributing at the front end of the year can significantly impact the time value of their accounts and with the compounding affect for more income at retirement. One of the things insurance agents can do to help manage AGI is to redeploy the money invested in interest bearing assets, and assets throwing off capital gains, into annuities and life insurance. Since these assets do not generate annual form 1099 …
