Concerned with your RMDs versus the INCOME that an Annuity would generate?

 I had a client in my office recently, and they were concerned with their RMDs versus the income that an Annuity would generate. I'll give you the numbers.

Their numbers were about $15,000 or $20,000 a year that they're getting from RMDs (required minimum distributions) from their IRA.

But when we did an income rider, they were going to get about $40,000 a year. These numbers are substantial.

When you really look at things, it’s more money than they're getting from Social Security and their RMDs combined.

Just by doing one little change…Turning their IRA or 401(k) into an income rider.

So if somebody who does need income and they have an IRA or a 401(k)…

And they want income to come in for the rest of their lives…which is a lifetime income payout.

We have income doublers that says, If you do go into nursing home where you need home health care…That we double your income.

Basically, if you're getting $2,000 a month, from the income rider, and then you get sick and you can't perform two of your daily activities, and you get a note from your doctor.

They double your income to $4,000 for five years, and then you go back to your original amount for the rest of your life.

So, these things are imperative for people who are in their 60s, 70s and 80s. 

*Blog Disclosure: It's not the purpose of this blog post to provide tax, legal and/or financial advice and you should always seek counsel from your CPA, attorney, and/or advisors as these topics relate to your specific needs. This information is being presented in a very general way and it's for illustrative purposes only.