brokersalliance.com Although they might claim that they are here to help boomers and seniors retire, are you sure that the government’s “retirement plan” is the best option for your clients?
At age 70 ½ all seniors have to take RMDs (Required Minimum Distributions) from their traditional IRA, 401(k), and/ or any other qualified money. They must calculate and withdraw the correct amount on their own and can face harsh penalties if they don’t. For most seniors, the RMD plan is the one they are going to follow because it’s been laid out for them and, after all, it was designed by the government so it must be the optimal way to receive retirement income. Right?
The reality couldn’t be further from the truth! Not only is the government’s plan suboptimal, but with life expectancy tables dramatically increasing it can actually be downright dangerous to seniors’ financial health in their later years!
The lifetime income annuity is the alternative solution for today’s markets, and one that most of your boomer and senior clients have not considered. It’s easy to roll the IRA or 401(k) into an annuity; there are no taxes due for transferring funds and no 10% withdrawal penalty for your clients, even if they start taking the income prior to age 59. In addition, the advantages of the lifetime income annuity significantly outweigh those of the government’s RMD plan in three powerful ways:
Steve discusses Tom’s new book, Paychecks and Play Checks, which you can order at firstname.lastname@example.org. The book is a blue print for retirement optimization of investment and insurance vehicles. The book focuses on the unique use of single premium immediate annuities or SPIAs, especially with geriatric clients seeking lifetime income. Although the present interest rate market is depressed, mortality credits can overcome poor interest rate crediting for those age 70 and older.
As with any investment, there are always some trade-offs. With the annuity, retirees do have to give up some liquidity and it may lessen their opportunity for growth in a bull market. However, considering the recent volatility of the markets, isn’t that an incredible exchange for zero market risk, zero order of returns risk, and high payouts that are guaranteed for life?
It really comes down to one question: Do your clients want to follow the government’s one-size-fits-all retirement plan, or do they want to create their own? As their advisor, if you discuss the three powerful benefits and display a simple chart of guaranteed income every single year of their retirement.
Steve Savant is a national insurance columnist, financial color commentator and host of the daily Internet talk show, The Business Insurance Zone. Insurance columnist and financial color commentator Steve Savant interviews special guest Tom Hegna, CLU, ChFC, CASI, author of the #1 book on retirement, Paychecks & Play Checks on Amazon.com.
Loading more stuff…
Hmm…it looks like things are taking a while to load. Try again?