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Become the "Go-To" Advisor with RMD Planning

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We all want to be known as the “go-to” advisor but often overlook areas where we can give our clients, their families and their friends a reason to “go” to us.

We often believe we’re different from the next guy but don’t educate ourselves on the plans we offer (this is key) or look for opportunities beyond the surface to provide real value.

With that in mind, knowing how the most common programs truly can be leveraged will give you an edge and a real reason for your clients to view you as their “go-to” advisor.

I will stress again, “the things that are common knowledge to us are not to our clients and prospects”.

For example, we are well aware of the recent Roth Conversion craze, and know the upcoming Re-characterization craze. Why were so many people looking to make changes to their IRAs? Because they don’t want to take the RMD, they don’t like the taxes or they’ve lost account value. And possibly because they feel like their are no better option.

But what about leveraging the RMD your client does not want to take because it depletes their IRA value as well as a possible tax burden? Is there a way we can leverage that RMD and have both hands working? I believe there is and it has allowed me to present tremendous value to my clients.

For example, a 70-year-old female with a $450,000 IRA has an RMD factor of 27.4, which translates into a withdrawal of approximately $16,423. She has the ability to take $6,423 and set aside for taxes each year, and set the remainder in an IRA Maximizer Plan, which will guarantee her heirs to receive an additional $354,943, for a total value of approximately $804,943.

 When you meet with your clients, ask them:

  • How are you currently using your Required Minimum Distribution?
  • Would you like to see your overall net worth grow in the years to come?

Then tell them, “If it’s all right with you I would like to show an option of how to leverage your Required Minimum Distribution to your benefit.”

This is how we show true value to our clients and prospects and become the “go to” advisor in our communities.

Matt Golab is a Registered Investment Advisor and a licensed insurance agent at Aaron Matthews Financial Resources in Elk Grove, Calif. He holds a Series 65 license in stocks, bonds, securities and private placements. He is a public speaker, holding educational seminars open to the public on income, retirement and investment planning options.


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