IRA Management – Maximize Your Client’s Options and Move That Money and Make That Sale

IRA Management – Maximize Your Client’s Options and Move That Money and Make That Sale

When an employee retires with an intact 401 (k), the funds can be moved to a self directed IRA without tax liability. During the accumulation course of action at the time the employee is working, the goal is growth. At retirement the goal can be much different such as preservation of capital and the stronger need for safety and security becomes much more important.

The use of an annuity in an IRA can help your client acquire the necessary income, safety and security desired at this stage of their lives. An annuity contract contains a provision called “settlement options” which include a guaranteed table of factors in calculating the minimum amount of income that will be paid. I always contact the insurance company to what their current rates are and show the client the range of income possible.

I have found that many people feel very comfortable investing their retirement packages in insurance companies because of the guarantees these contract provide. The term I use is “safe, obtain, reoccurring” income. I explain to them that they can use all their money every month because it comes again the next month. The concept of having an income that they can never outlive helps reduce stress and provides a sense of security.

It is important to fully understand the individual needs of your prospect before making any recommendations. While annuities offer safety and security, there are situations when tan annuity may not be the best option. The choice for an annuity should be made only after a complete and thorough fact finder is completed and then when a complete understanding of the client’s needs are understood.

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