One Way to Create Income for Life and a Guaranteed Inheritance for Your Kids

Jim was a retired corporate lawyer, married with two grown kids and one year from turning 70.5 — the age when he’d have to take his first IRA required minimum distribution. The thing is, Jim didn’t need the money from his RMD.

All in all, Jim and Susan were extremely satisfied. They could have done nothing and let the IRA stay in stocks and bonds, and maybe it would have doubled on its own over time. But we took the uncertainty out of his planning. The insurance created an immediate income tax-free estate for his kids, and the annuity provided the funding — the whole plan was now on autopilot. Jim and Susan were free from worrying about how to provide for their kids and could now spend more time enjoying their retirement.

If this type of plan sounds like it might be for you, here are a couple things you should consider:

• Be sure to have enough other money to live on. The client mentioned here had ample other money and pensions so they did not need their IRA RMD.
• Also, this works for conservative investors who want to take the guesswork out of planning. This couple did not want to take stock market risk with their kids’ inheritance.