Now you can go back to the W-2 to see whether the client’s company is providing more than $50,000 in life insurance, and make sure they’re aware that they are paying taxes on this overage. This can spur a general discussion about life insurance, touching on the issues of how much coverage they need and the importance of covering both spouses.
Among 42% of married couples, only one spouse has a life policy. And, according to a recent life insurance industry study, 41% of adults have no life insurance at all.
Upon concluding the interview, you can then offer to prepare and deliver the personal balance sheet along with the return. The client may express interest in a financial-planning relationship on the spot, without being prompted.
Regardless, it’s not enough just to prepare the balance sheet. You must also ensure that the client fully understands it and its implications for their total financial picture and how that picture can be adjusted for their ultimate benefit.
Thus, you can plant the seeds of interest in a financial planning/wealth management relationship while engendering confidence in your ability to deliver these new services skillfully.
Chris Basom, a tax accountant and financial planner with Your Money Matters Inc. in Orange County, Calif., is founder of Your Business Matters Inc., a new online subscription service that provides business growth tools to tax professionals making the transition to offering financial planning services.
