How RMDs Can Actually … If you probably won’t need to access your IRA/401k money in the next 5-10 years, you need to perk up and pay attention to this... |
Here’s the problem:
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Starting at age 70 1/2 , Federal Law dictates that you must take RMDs (Required Minimum Distributions) from your IRA or 401k. That means whether you need it or not, whether you want it or not, you must withdraw a certain percentage, defined by the IRS, of your IRA every month.
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| This is a BIG problem mainly for one reason … when you withdraw this money, it is taxable at your current tax bracket, at the time of the withdrawal, by both the State and the Federal Governments. When you add up all of the taxes, it can be as much as 35% to 40% of the RMD Withdrawal, and in some cases, enough to bump you up to the next higher tax bracket. Many people have a big problem with this because they don’t need the money and want to have it available for their spouse/heirs in case of their death. We have been showing clients how to pay the tax, and, at the same time, increase the amount of money they have for their heirs by as much as 10% - 14%. This strategy not only preserves their nest egg for their heirs, it usually increases it. You’re probably wondering how this is possible. I’ll admit that it isn’t easy to construct a plan that will benefit retirees when they face such a distasteful tax liability. Here’s how the plan works... 1. You will take a portion of (or all of) your IRA and purchase a Guaranteed Insurance Contract (GIC) designed for income (annuity) 2. The income from that GIC will fund a GIC designed for wealth accumulation (life insurance). 3. The wealth accumulation GIC and income GIC will then work together to create up to a 10-14%* return on your money as a whole. You don’t have to be 70½ and taking RMDs to benefit from this concept. Planning in advance will only make the plan stronger when you are forced to take those dreaded RMDs. In fact, the earlier you start, the stronger the plan can be, the larger your legacy will be, and the better your chances to qualify. If you have money in an IRA that you do not expect to access within the next 5-10 years, if you qualify, this Plan, called the IRA Optimization Plan, just may be the best way for you to protect your assets and grow them at the same time. This strategy isn’t one that works for everyone. It has to be strategically engineered for each person, because there are different terms in different contracts that may work well for someone else that may not work well for you. It is not a one size fits all plan. Note: You may even be able to use the IRA Optimization Plan to provide you assistance with Long-Term Care expenses if needed. To determine whether or not The IRA Optimization Plan is for you, we are offering strategy sessions that will show you exactly how you may be able to capitalize on this strategy at no cost or obligation. We’ve made it very easy for you to schedule that strategy session. Just contact us here to set up a session to see if the IRA Optimization Plan could work for you. At Statewide Retirement Planning Co., we specialize in retirement income planning and are thoroughly trained and versed in the latest products and strategies to provide these solutions for you. There is absolutely no cost or obligation to you. Fill out the form here to connect with a specialist who may be able to structure The IRA Total IRA Optimization Plan for you. Committed to Helping You Live a Happier Retirement Martin L. Gross P.S. If you’re an IRA owner, The IRA Total Return Plan may be a smart way to avoid Reverse Dollar Cost Averaging (pulling money out of the market when it’s going down), a circumstance that has left millions of retirees with a depleted nest egg. Tthis special solution to the RMD dilemma doesn’t just help you avoid depleting your nest egg... It helps you grow it with contractual guarantees*. This is meant to be a general educational article on issues that many seniors, retirees, and pre-retirees consider in making the decision as to whether or not they should buy an annuity, and, if they do decide to buy, which type of annuity and which annuity benefits and additional riders might be most appropriate. This educational article is not designed to be a recommendation to buy any specific financial product or service. We are independent, licensed, insurance agents in the state of Florida. *We use a combination of insurance products (life insurance and annuities) making it possible to achieve 10-14% total return during your retirement and for your heirs after your death. **Insurance and annuity contract guarantees rely on the financial strength and claims-paying ability of the issuing insurer. |
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Call us now at (954) 781-2220 or fill out this short survey to find out more about how you might receive guaranteed* income for life and protect your principal at the same time!
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