TaxCoach Briefs:    July 16, 2009

Volume 4, Number 31

• Category Title: Goal Setting Exercise, Part Deux
• New Resource: MERP Third-Party Administrator
• New Resource: Member Call-In With Ed and Keith
• Member Q & A: TaxCoach Content Online

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MARKETING MINUTE (EAL)
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GOAL SETTING EXERCISE, PART DEUX

Last week, I discussed the importance of setting goals for your practice. And I emphasized the special value of publicly announcing your goals as a way to strengthen your commitment.

Towards that end, I announced myself that I've committed to running a 5k race on Sunday, September 6 -- the Cincinnati Zoo's "Cheetah Run," with a course winding through the Zoo grounds.

I found a plan for going from "couch" to "race" in just 8 weeks, and I'm pleased to say I jumped through the first hoop. I followed the plan for the first week -- six minutes of walking, followed by a minute of jogging, repeated three times. Then on Sunday, the first day of Week Two, I swapped that for five minutes of walking, followed by two minutes of jogging, repeated three times. (I know -- two minutes of jogging, right. But I repeat it three times, every time I work out!)

Okay, we're talking baby steps here. But as the philosophers say, a journey of a thousand miles really does start with a single step. Keep that in mind as you set goals for your business.

If you're new to TaxCoach, we recommend you pick three or four current clients to use as as "guinea pigs." Prepare plans for them, and tell them honestly that you want them to tell you if you should make TaxCoach a permanent part of your practice.

If you've been with us for awhile, but you're not getting full use out of your membership, you can still take "baby steps" to promote proactive tax planning. Pick a certain number of clients to contact. Or set as a goal to ask a certain number of prospects the "wedge question" that opens more conversations than any other: "When was the last time your tax pro came to you and said 'here's an idea I think will save you money'?"

You can build your dream business, just like I can run a 5K. But we both have to start. Start by solidifying your relationships with your best clients. And let that exercise teach you how you can clone those relationships and even those clients into the business you really want to enjoy running.

My 21-minute workouts really aren't that hard. I'll keep you posted as I move forward. Or Keith will let you know if it really does kill me!

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NEW RESOURCE (EAL)
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MERP THIRD-PARTY ADMINISTRATOR

Keith and I are always looking for "shiny things" we can bring you to add to your practice. And we've got a great one if your small-business clients are straining under the cost of group health premiums.

The Medical Expense Reimbursement Plan (MERP), or Section 105 plan, is probably the single most popular strategy in the TaxCoach repertoire. In fact, long before Keith and I launched the business, I showed him how to implement a plan for his own family -- and the savings I created were instrumental in showing him the value of proactive tax planning.

Most of us are familiar with using the MERP in family proprietorships -- hire the spouse and pay them in the form of medical benefits to shift those expenses from Schedule A (where they are rarely deductible at all, and even then only to the extent they exceed 7.5% of adjusted gross income) to Schedule C, where they lower taxable income and self-employment tax.

But the MERP is also a powerful tool for cutting group insurance costs. Let's say your client sponsors a group health plan with 20 employees. Typically there will be an individual deductible (say, $500) and a family deductible (usually twice the individual deductible).

Employers are gradually raising those deductibles to cut premiums. And we've seen cases where raising the deductible guarantees overall savings. For example, one TaxCoach member discovered that if they raised the deductible $750, the premium fell by $900. Hard to lose with numbers stacked like that!

Raise the deductible high enough -- say, to $2,500/person and $5,000/family -- and you can cut premiums by up to half. The problem, of course, is that you're also cutting benefits. That's where the MERP comes in.

What if you could refinance your clients' healthcare benefits, the way you might refinance a house? What if you raised the deductible through the roof, then set up a MERP to cover the difference between the old deductible and the new deductible? What would happen to overall costs?

Our experience shows that most employers who adopt this strategy save 20-30%. With no reduction in benefits.

We've worked for some time now with an innovative firm that specializes in administering these plans for clients across the country. Those clients range from mom-and-pop shops to a local school district with over 800 employees (coincidentally, it's where Keith graduated in 1982 as valedictorian!)

The firm is called ClaimLinx, and we're pleased to recommend their services. Visit their site, and you'll see a video testimonial from TaxCoach All-Star Mike McCormick right on the Home Page. We've also added this link into -- where else? -- the "Shiny Things" section of the TaxCoach Playbook.

When you call, ask for Christy Quigley, and tell her we sent you. Your clients who sponsor healthcare benefits will thank you!

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NEW RESOURCE (KAV)
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MEMBER CALL-IN WITH ED AND KEITH

Ed and I hosted our third Member Call-In session yesterday, July 15, and we think we have a winner. This is an opportunity for our non-elite members to ask basic questions on TaxCoach content, strategy, and marketing.

There's clearly enough demand to host them weekly, which we'll do unless we're traveling or on vacation. Our next Call-In will be on Wednesday, July 22, at 1pm Eastern.

Check the "Contact Us" button within TaxCoach for registration instructions.

Please note that while our elite members (All-Stars, Press Club, and Hall of Fame) can schedule time directly with Ed as part of their coaching programs, we simply cannot answer these sorts of questions via email or unscheduled calls. We'll make as many call-ins available as we can, and we'll talk to you then!

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MEMBER Q & A (KAV)
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TAXCOACH CONTENT ONLINE

Q: I ran across a website that has one of the comparison grids from the TaxCoach Forms & Templates folder on it. Is that allowed under the licensing agreement? On one hand, it would be a nice addition to our sites. On the other, it devalues the purchased plan to the client who pays to receive a plan.

A: Yes, the use of TaxCoach content, including on members' websites, is specifically licensed as a part of membership in TaxCoach. I understand your concern, and it is a natural reaction, but there are several mitigating factors. First is that TaxCoach is a niche product, so the likelihood of running into a direct competitor in your vicinity who's also a member is low.

Secondly, the true value of TaxCoach is not in the plan and materials itself, but in your delivery of the planning. The goal of TaxCoach is to give you tools to strengthen and capitalize on your relationships with clients. What clients want most is not another self-help book or do-it-yourself kit -- the web is full of that, and none of it gets them any closer to their goals.

In our members' experience, what clients want most is a trusted advisor to answer their questions and navigate them through complex waters. And that lets you build a better business, based on relationships, rather than on transactions. It lets you distinguish yourself with a distinct service rather than a commodity. So if they might happen to run across one of the reference materials on the web that you also show them, that doesn't diminish the boost to your relationship -- because you're not selling them a handwritten plan. You're delivering them a plan tailored to them -- but more importantly, one that you've pulled together for them as support for the key recommendations you want to make.

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We're happy to answer your questions on TaxCoach features. (Save marketing and tax strategy questions for Member Call-Ins.) For best response, email support@taxcoachsoftware.com. If we think the answer will be useful to all of our members, we'll publish it (anonymously) here in the 'Member Q & A' section of TaxCoach Briefs.

Regards,

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