RMD

"Required Minimum Distributions"

 with

Guaranteed§  Growth

a possible solution in today's unstable market

§  NOTE: All Guarantees§ are based on the financial strength and claims paying abilities of the 

company chosen for your annuity. That is why I only offer the finest. Feel free to contact me 

for more information and the name of the company referred to in this article. 

Are you age 70 1/2 and need to take RMD-Required Minimum Distributions? Would you like some 

Guaranteed§ growth?

For tax-qualified annuity contracts (IRA's), the IRS requires that all contract owners begin receiving

payments from their IRA contracts beginning on April 1 of the year, after they reach age 70 1/2. 

IRA owners who fail to withdraw their RMD amounts may be subject to a stiff 50% IRS penalty 

on the amount that you should have withdrawn, so don't let this happen to you. Then read on....

Recently, I've received numerous requests on how to set-up a IRA for "RMD withdrawals from an 

IRA at age 70 1/2" but some people are reluctant to use a variable annuity, for a variety of reasons. 

Therefore, I'm going to show you a way to set-up an RMD income stream from an IRA with 

Guaranteed§ growth, using a FIXED annuity!

Like Will Rogers once said, "I'm not as concerned with the growth on my money as I am in protecting 

my principal." You may feel the same way. But you'd like a REASONABLE growth at least! Right? 

I believe, the whole idea is, to end up with as close as possible, to what we started with in the beginning- 

or more! Right?

I've spent months searching for just the right investment that would do exactly that. And I've found it. 

It's called the "Guaranteed§ Single Premium FIXED annuity" .

It's PREDICTABLE, it's NON-Cancelable to the owner, and  the growth rate is Guaranteed§ 

and so is your PRINCIPAL.

Here's how it works: ( in this example I will use a 70 1/2 year old, with $1,000,000 in their IRA 

account that could be used for an income stream. To satisfy the RMD minimum required withdrawals.)

He puts his $1,000,000 into this Guaranteed§ Fixed annuity using a 10 year contract at a currently 

offered Guaranteed§ rate (as of 07/10/02) of 6.2% for the 10 years. (Some offer either, 5, 6, 7, 8, 

9 or 10 year contracts to easily fit it to a specific person's needs. Rates vary for each length of contract. 

Ask for current rates on other contract lengths.)

Then, we set it up to withdraw only the "Required Minimum Distributions" which in this case, for a 

70 1/2 year old, would be 3.82% in the first year. It would provide an income stream of $38,200 in 

the first year and increases each year, as the "Required Minimum Distribution" also increases each 

year as he gets older.

The annuity is now GROWING at a HIGHER rate than he is WITHDRAWING and at the end of 

the 10 years, he will end up with even more than he started with. His principal is Guaranteed§! He 

would enjoy the income stream over the 10 years, satisfy the IRS withdrawal requirements and still has 

the original amount he started with PLUS all the excess growth he hasn't spent! No hassle or worries!

In my opinion, this may be the most IDEAL and perfect "RMD" income system. When the contract 

ends in 10 years, the IRA owner can take his money and move it elsewhere or simply renew it as a 

new contract, if he wishes! His choice! This is the proverbial "have your cake and eat it too" scenario!

Here's an added twist that can also be used to advantage as well. Let's suppose the IRA owner 

withdraws the full 6.2% of interest earnings every year, the full $62,000 each year. (instead of just 

the minimum RMD amount.) Then he reinvests that same amount of $62,000 back into a non-qualified,

 tax deferred Variable annuity, or an Indexed Annuity as after-tax money, now that he has paid the taxes 

on it.

This could be a perfect plan for many people. Of course, if they need all or any part of their money, 

it would be available to them to withdraw it, in full or partially. NOTE: Early withdrawal penalties 

may apply. Of course, they might also loose some interest earnings in the event of an early withdrawal.

This annuity is not FDIC insured, none are! For more information on FIXED annuities GO HERE.

Generally annuity Issue ages are from age 0-age 90 with Minimums starting at $1,500 for Qualified 

accounts and $5,000 for all others. The Maximums are often $1,000,000 without the companies 

prior approval. You can also have your income stream automatically direct deposited to your checking 

account for easier use.  Some even offer check-book access.

In addition to all the above fine features and benefits, an annuity owner can also "annuitize" their annuity 

contract, by selecting from one of the following: (this can vary from annuity to annuity) . For a more 

complete explanation of what it means to "annuitize" a contract, GO HERE.

·         Income for LIFE

·         Income for a Specified number of years

·         Income for LIFE with a specified number of years  

FREE NURSING HOME WAIVER-If you become hospitalized or confined to an eligible nursing home 

for at least 45 days during a 60 day period, after the first contract year. All charges to withdraw your 

money are waived if you desire to with it ALL, all at once! Again, this valuable option can vary from 

annuity to annuity and may not be available in all states. And may have an additional cost, check to make 

sure.

Of course this fine annuity can also be used for ANY kind of money as well, not just for IRA money! 

Want Guaranteed§ Growth, this is it!  To see IRS's RMD Distribution TABLE GO HERE but please 

come back to my web site.

Under the NEW Minimum Distribution Regulations (effective 2001 for use in 2003), the above Uniform Table 

may be used by ALL IRA owners who turn age 70 ½ in 2001 to determine their annual required minimum

distributions (RMD’s) Are you approaching age 70 ½? Then try this RMD Calculator

§ NOTE: All Guarantees are based on the financial strength and claims paying abilities of the 

company chosen for your annuity. Feel free to contact me for complete details and the name of 

the company referred to in this article. The above explanation is just a brief summary. I'd be 

pleased to send you a complete company brochure on this or any other product mentioned on 

my web site. This annuity or some of the additional options may NOT be available in ALL states.

NOTE: annuities are NOT used for their tax-deferred growth when combined with an IRA. 

There are many other reasons (as described here) for using an annuity, since an IRA already 

offers tax-deferred growth without the use of an annuity.

For more info on FIXED ANNUITIES GO HERE

To use a FIXED ANNUITY for a 72(t) IRA early distributions GO HERE

What is a 72(t)? (for early IRA distributions prior to age 59 1/2) GO HERE

For info on using Variable Annuities effectively GO HERE

Using 

"Split-Annuities" 

to provide an income you can't outlive. 

Guaranteed for LIFE!

GO HERE

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