Talk Legacy, RMDs, & Gather BIG Assets

When was the last time you had a client say they wanted to pass money on to their children or grandchildren? If you are like most financial professionals, it was probably very recently. According to an Ameriprise Financial Survey, “77% of Americans plan to leave a financial inheritance for their children or grandchildren, only 64% feel they’re prepared, and just 50% have a plan in place.”

I often hear clients say that they would like to ensure there’s something left for heirs or charitable gifting, but most don’t know how. Take it from me, the devil is definitely in the details here!

One very common legacy concern I’ve heard is, ‘Will there be any money left after I’ve taken out my RMDs every year?’

To start, think about your clients. Who can you think of that doesn’t need to take RMDs and wants to preserve, protect, and even possibly enhance their legacy, even when the market goes down. Now keep thinking about those clients… and keep reading.


The usual way for clients to leave a legacy is through life insurance. No surprise there. But for many that isn’t possible — or is excessively expensive — due to health issues. I’ve often found that many people have earmarked an account to pass on when they die, and more times than not, that happens to be a qualified asset.

But so many times retirees are concerned about the additional tax consequence of accessing qualified monies. They hold off taking access until they are forced to take RMDs even though they often plan to pass those assets to their heirs.

What is an appropriate RMD strategy that’ll satisfy the requirement, while still protecting and maximizing the legacy left for the next generation?

Or maybe you’ve got clients that have done a great job of accumulating assets over their lifetime, both qualified and non-qualified, and they realize their retirement income needs are pretty squared away. Between social security, maybe pension payments and income from investments, there really isn’t a need to draw substantially from their IRA’s. In fact, they will really only take RMD’s because they have to.

Here’s the problem: if they take RMDs out of the account they plan to leave as a legacy, how much money are they actually going to leave?

What clients really want is to satisfy RMD requirements and maximize the legacy they leave for the next generation.


One very common concern I’ve heard over and over again is, “will there be any money left after I’ve taken out my RMDs every year?” While depleting the entire account isn’t going to happen if they are only taking RMDs, Longevity Risk and Market Risk always comes in to play.

We need to preserve, protect, & potentially enhance a legacy, regardless of market performance.

Accounts can be significantly drained between taking RMDs, how long clients live, and if the principal is at risk due to the whims of the market. Just picture the perfect storm of living 15-20 years longer than expected, taking RMDs the entire time, and having the market drop!


What if your clients could meet their RMD obligations and still protect their legacy?

Not only is it possible, we’ve found a potential solution to preserve, protect, and possibly enhance a legacy while taking RMDs.

This solution:

  • has no health requirements
  • allows clients to take RMDs over their lifetimes
  • minimizes the RMD impact on a Legacy
  • has potential for clients to leave even more than they started with

… all while assuming no return on the account.

What I’m talking about is the Family Endowment Rider as part of the BCA suite of Annuities and it’s guaranteed legacy growth for your clients.


-60-75 years old  

-Qualified money

-Probably only going to take RMD’s in retirement.

-Would like the opportunity to maximize the legacy left, regardless of performance.

If the “Benefit of Legacy Optimization” sounds like something you want to hear more about, reach out to me and I’ll send you more information. Because this sales idea WORKS to gather big assets. And if it works with ZERO interest credits, just imagine what it can do for clients during an up market!  

Gather Big Assets: New Sales Concept from DMI
Watch this incredible sales idea in action!

Tyrell Jensen

I am a VP of Annuity Sales. I am here to help you with annuity case designs for your clients, discuss annuity products, and give general annuity support. Please follow the instructions to schedule a meeting with me.

Or Call 781-919-2368