ADVANCED RMD PLANNING

Topics of Discussion Leveraging RMD Optimization using an annuity with lifetime withdrawal benefits to allow for portfolio efficiency Reduce pressure of the RMD off the equity asset class Planning for RMD’s throughout retirement

Portfolio Growth Age 60-70 Total RMD is 3.65% which is $29,418 Proportional RMD = $9,810 Proportional RMD = $19,608 Total RMD is 3.65% which is $29,418 This assumes a 6.00% average yield on the equity portfolio and a 3.00% yield on the fixed income portfolio.

What is the Goal? How? Leverage the fixed income dollars Satisfy RMD’s efficiently throughout retirement Allow more money to stay invested in equities Reduce the withdrawal percentage from the equity portion to allow longer market exposure, which will allow us avoid market sequence How? Leverage the use of a withdrawal benefit on an indexed annuity

Portfolio Growth Age 60-70 Total RMD is still 3.65% which is $29,418 Lifetime income = $22,000 Remainder RMD = $7,417 A 1.38% withdrawal from the equity position This assumes a 6.00% average yield on the equity portfolio and a 3.00% yield on the fixed income portfolio.

Withdrawal % Non-annuity $ Illustrated Values Age Equity Value Yield Excess Withdrawal Withdrawal % Non-annuity $ FIA Value GMWB Income RMD Factors RMD Needed % of Total Value 60 $300,000 6.00% $0.00 0.00% $200,000 3.00% 61 $318,000 $206,000 62 $337,080 $212,180 63 $357,305 $218,545 64 $378,743 $225,102 65 $401,468 $231,855 66 $425,556 $238,810 67 $451,089 $245,975 68 $478,154 $253,354 69 $506,844 $260,955 70 $537,254 $7,417.43 1.38% $268,783 $22,000 27.4 $29,417 3.65% 71 $562,072 $8,827.13 1.57% $254,847 26.5 $30,827 3.77% 72 $586,969 $10,322.72 1.76% $240,492 25.6 $32,323 3.91% 73 $611,865 $11,909.79 1.95% $225,707 24.7 $33,910 4.05% 74 $636,667 $13,594.33 2.14% $210,478 23.8 $35,594 4.20% 75 $661,273 $15,382.75 2.33% $194,792 22.9 $37,383 4.37% 76 $685,566 $17,281.93 2.52% $178,636 22 $39,282 4.55% 77 $709,418 $19,104.41 2.69% $161,995 21.2 $41,104 4.72% 78 $732,879 $21,238.13 2.90% $144,855 20.3 $43,238 4.93% 79 $755,613 $23,272.53 3.08% $127,201 19.5 $45,273 5.13% 80 $777,678 $25,416.83 3.27% $109,017 18.7 $47,417 5.35% 81 $798,922 $27,676.48 3.46% $90,287 17.9 $49,676 5.59% 82 $819,180 $30,057.10 3.67% $70,996 17.1 $52,057 5.85% 83 $838,274 $32,564.42 3.88% $51,126 16.3 $54,564 6.13% 84 $856,006 $35,204.25 4.11% $30,660 15.5 $57,204 6.45% 85 $872,162 $37,577.15 4.31% $9,579 14.8 $59,577 6.76% Additional consideration must be made for the tax consequences. Consult the rules of RMD calculation on annuities with a tax advisor.

What is Next? Call your Producers Choice representative for a RMD portfolio design. You will need Client’s current age Total IRA portfolio value Estimated portfolio allocations Producers Choice 800.238.0448