As we venture into the end of 2015, we wanted to reiterate a few opportunities to assist clients with their retirement planning that often get overlooked.
Some agents have taken advantage of the QLAC (Qualified Life Annuity Contract.) This nifty tool arose as a result of the U.S. Treasury’s removal of certain restrictions to annuities and similar retirement savings arrangements. The QLAC allows implementation of efforts that help balance the use of annuities and other investments in their retirement savings capacity. They essentially allow deferment to age 85 before taking required minimum distributions, as opposed to the old 70 1/2 standard. There are limitations of course, but moreover they make a great opener for a discussion between you and your clients. Quite frankly, the opportunities, in my opinion, may be few and far between, but at least you’re having the discussion with your client and potentially uncovering opportunities to help them.
Another great opportunity for you and the client are in-service distributions from a qualified plan. First and foremost, though, your client must be at least 59 1/2, still working, and contributing to his or her plan! You’ve all heard the saying, “buy low, sell high.” Well folks, it appears we’re at a high. Why not reduce your client’s market risk/exposure within their, let’s say 401k plan and move that to a safe place… a fixed annuity, for an example. Once you present this opportunity, the response should be an instant, “let’s get this done.” The opportunity is presenting itself at this very moment, and if you listen to the financial forecasters there is change coming. Why not lock in those nice returns and prevent a repeat of 2008? Can your clients afford to suffer more loss with less time to make up?
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