Natural bull and bear market fluctuations can have consequences when it’s time for clients to start taking RMDs from IRAs and other qualified plans.
RMD
Strategy
When RMDs are taken during a market downturn, your clients may find themselves withdrawing from funds that have lost value, which also makes it more difficult for the depleted assets to recover.
Help Clients Optimize RMDs
As shown in the chart,
your clients’ RMDs will increase over time, because they are designed to
drain a portfolio to zero over
one’s life expectancy.
The IRS requires your clients
to begin taking RMDs from
retirement savings vehicles
by
April 1 in the year after
they reach the age of 73.
Client profile: Female, age 70 with $200,000 in total IRA values.
See how
with a 50/50 approach
Projections Three Years Later
After 15% Down Market
Leave $100,000 in IRA funded with growth assets.
Allocate $100,000 to WealthChoice FIA with Guaranteed Living Benefit Rider.
Growth IRA lost 15% and is now worth $85,000.
WealthChoice FIA value for RMD purposes is $97,767.
Projections Three Years Later
Advance Planning is Key –
With the right strategy you could help your clients continue to grow their funds during this critical time in their financial lives. Using advance planning and IRA funds positioned into WealthChoice FIA with Guaranteed Living Benefit Rider (GLBR), your clients could enjoy guaranteed lifetime income while also satisfying RMDs.
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WealthChoice is unique by allowing much higher income than traditional sources of income benefits– just put a decimal point between a client’s age to see the benefit.
For example, a 73-year-old could withdraw 7.3%, allowing them to use that income to their advantage.
WealthChoice is a Solution
After 15% Up Market
Leave $100,000 in IRA funded with growth assets.
Allocate $100,000 to WealthChoice FIA with Guaranteed Living Benefit Rider.
Growth IRA gained 15% and is now worth $115,000.
WealthChoice FIA value for RMD purposes is $114,187.
