1. ADVANCED
RMD PLANNING

2. 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

3. 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.

4. 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

5. 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.

6. 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.

7. 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