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IRA Strategies for Wealth Transfer
Presenter
Title
For Producer Use Only
Today’s Objectives
Today I’ll demonstrate how you can
improve your client’s legacy
by describing what IRA investors typically do,
& comparing it to two simple but powerful ideas
so they can maximize their IRA legacy potential
and recognize the value you bring.
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Sources of Retirement Cash Flow
Pension
Social Security
Savings
Pension
30 Years Ago
Social Security
Savings
Today
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IRAs and RMDs
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RMDs vs. Account Value
18%
16%
14%
12%
14%
12%
10%
10%
8%
8%
6%
6%
4%
3.6%
2%
0%
70
75
80
85
90
95
100
RMDs as a % of Account Value
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Projected IRA Values
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000
$20,000
$0
70
75
80
85
90
95
100
105
110
115
$100,000 IRA; 7% hypothetical annual return
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Typical IRA Transfer
IRA Owner(s)
Children
Grandchildren
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Typical IRA Transfer
IRA Owner(s)
$500,000
Children
$300,000
Grandchildren
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Story Selling
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3 Circles
2 Questions
3-Point Value Proposition
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3 Circles
Your money can go to three
places when you’re done with it:
L.O.
C
G
Cross out the one you would least like
to get your money when you’re done with it.
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Client Questions & Value Proposition
2 Questions:
1. Mr. & Mrs. Jones, if things go the way you have
planned, what’s going to happen to your IRA?
2. Why don’t you give it to them right now?
3-Point Value Proposition:
1. We’ll keep your IRA in your Care, Custody and Control;
2. Potentially double, triple or quadruple the value of your
legacy; and
3. Take no additional investment risk in your portfolio
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IRA Wealth Transfer Strategies
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Typical IRA Transfer
IRA Owner(s)
Children
Grandchildren
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Typical IRA Transfer
IRA Owner(s)
$500,000
Children
$300,000
Grandchildren
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Life Insurance Solutions
for
IRA Wealth Transfer
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1. IRA Income Tax Offset
IRA
RMD’s
Beneficiaries
Life Insurance
(equal to taxes)
Taxes
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1. IRA Income Tax Offset
IRA
$500,000
RMD’s
Beneficiaries
$500,000
Life Insurance
$200,000
Taxes
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2. IRA Income Tax Elimination
IRA
RMD’s
Charity
Life Insurance
(equal to IRA)
Beneficiaries
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2. IRA Income Tax Elimination
IRA
$500,000
RMD’s
Charity
$500,000
Life Insurance
$500,000
Beneficiaries
$500,000
Tax-Free Total:
$1,000,000
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Comparison of Strategies
Total Net After-Tax Legacy
$1,000,000
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Current
Tax Offset
Tax Elimination
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Do you remember our
3-Point Value Proposition?
1. We’ll keep your IRA in your Care,
Custody and Control;
2. Potentially double, triple or quadruple
the value to your beneficiaries; and
3. Take no additional investment risk in
your portfolio
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The “Soft” Close
“I know you qualify for this program financially, but. . .
I don’t know if you qualify medically.”
You have time to think about it.
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Questions or Comments
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IRA Strategies for Wealth Transfer
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Important Information
Policies issued by American General Life Insurance Company (AGL), a member of American
International Group, Inc. (AIG)
The underwriting risks, financial and contractual obligations and support functions associated with
the products issued by AGL its responsibility. Guarantees are subject to the claims-paying ability
of the issuing insurance company. AGL does not solicit business in New York.
Policies and riders not available in all states. Keep in mind that American General Life Insurance
Company and their distributors and representatives may not give tax, accounting or legal advice.
Any tax statements in this material are not intended to suggest the avoidance of U.S. federal,
state or local tax penalties. Such discussions generally are based upon the company’s
understanding of current tax rules and interpretations. Tax laws are subject to legislative
modification, and while many such modifications will have only a prospective application, it is
important to recognize that a change could have retroactive effect as well. Individuals should seek
the advice of an independent tax advisor or attorney for more complete information concerning
their particular circumstances and any tax statements made in this material.
©2014. All rights reserved.
AGLC107191
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