Enjoying Retirement while Leaving a Legacy

John and his son, Ryan, decided to take a beach vacation during the 4th of July Holiday. They haven’t really spent much time together in recent years. Ryan spends the majority of his time juggling work and home life with a 4-year-old. After the trip, John called his Financial Professional, Bob, to discuss not only the great time he had with his son’s family but also to confirm that the legacy he was planning on leaving Ryan was still on track. John voiced his concern that it was important to him that his son spend more time with his family, rather than always working to secure their future.

During that conversation, Bob mentions to John that this coming year, he will have to start taking his RMD. Bob explains that a RMD (required minimum distribution) is the minimum amount you must withdraw annually from your individual retirement account (IRA). The withdrawals taken will be included in his taxable income. This rule is in place to ensure that clients do not use their IRA to avoid paying taxes. John was upset upon hearing this and questioned Bob if the distributions would affect the principal amount of the account. Bob confirms that yes, it will reduce the amount of the account based on how many withdrawals you will take over the course of your retirement. However, he does have a solution for John to consider.

Bob further explains to John that if he transfers this account to a Jackson Variable Annuity with an add-on benefit, which offers a non-reducing death benefit feature, Bob will be able to take income withdrawals from the annuity. This will allow John to still preserve the initial principal amount that he intended to leave Ryan upon his passing. John was so relieved that Bob came up with this solution; he never intended to take money from his IRA, it was all about leaving behind his legacy.

John proceeded in purchasing the annuity. Now, he is enjoying his retirement with the confidence that no matter what lies ahead, his legacy is secured.

A Clear Course Ahead