You Can Help Clients Avoid RMDs Until Age 85! By Selling Them An Annuity!
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Many clients have IRA money they do not want to spend, and plan on passing the IRA funds to their heirs.
They also would prefer not to start taking Required Minimum Distributions (RMDs) in their 70s. Well, there is a special type of annuity that will allow them to delay taking RMDs for years—all the way up to age 85! The annuity is called QLAC, which stands for Qualified Longevity Annuity Contract.
The client can choose any age between 73 and 85 to turn on guaranteed income and can choose between lifetime-income-only or lifetime-income-with-cash-refund. The cash refund pays a bit less, but your heirs get the balance in the account when you die (if there is any left). With the lifetime-income-only option pays more, but no money goes to heirs when you die .
The maximum amount you can put in a QLAC is $210,000. But, moving that money to a QLAC also reduces the amount of RMDs you pay on the rest of your IRA funds, because the money in QLAC is not counted when calculating how much the RMD will be on the other IRA funds. So, clients save money on all their IRA funds, not just the amount in the QLAC.
This is an unbelievably effective conversation starter when talking with a prospective new client, especially for those that don’t seem very interested in regular annuities. A great time to bring it up is when you have started a conversation with a potential client, and they say something like, “I’m not really interested in annuities” or “I’m happy with my current adviser.” Then you can say something like, “Do any of your current assets let you delay your RMDs until age 85?”
Give us a call for more information, illustrations, and brochures: 800-200-9194
Tax Season Offers Sales Opportunities
For the next several weeks people will have taxes on their minds. Whether they owe money or get a refund, people think differently about their finances at tax time. Studies show that people think more about their entire financial future—especially retirement—around tax time, and they older a person is…the more they think about retirement finances.
This is a perfect time to help people improve their financial future in a number of ways…
- Life Insurance: Most Americans are either under insured, or over insured.
- Over: help them sell their unwanted life policy, or transfer cash value into an annuity for growth and/or guaranteed lifetime income.
- Under: show them how inexpensive it would be to add another $100,000 to $1,000,000 policy.
- Annuities: show them how they can defer taxes on their annual returns, eliminate market loss risk, make better returns than CDs, and build a guaranteed lifetime income stream to give them more to spend in retirement.
- Living Trusts: tax time gives people a full picture of their assets. Help them protect those assets with our easy and affordable EDP living trust system.
Call us for more. We can grow your sales:
800-200-9194
info@twhagency.com
~ Greg Skogsberg
Click here for a short video about this month's issue
We now have annuity contracts with FORTY-ONE carriers. More than any other FMO! And this is just one of the reasons we are The #1 Concierge FMO in America!
Gregory B. Skogsberg
Greg is the President of TWH Agency with 20+ years of professional experience. Greg is a seasoned management consultant who has worked for organizations of all sizes in locations all across the country.
