🔥 Summer Sizzle, Week 3: The RMD Confused Retiree

How to Simplify the Most Misunderstood Rule in Retirement

Every summer, thousands of retirees hit their 70s without a clear plan for Required Minimum Distributions — and the confusion is real.

• “When do I have to start?”

• “How much will I owe in taxes?”

• “Can I reinvest it?”

• “Do I have to take it all at once?”

Most of them aren’t asking you yet — but they’re definitely Googling it. This is your chance to get ahead of the curve with timely guidance that helps them feel in control and opens the door to smarter planning.

🎯 Who This Applies To:

• Clients age 72 or older (or 73+ if born 1951–1959)

• Retirees with old 401(k), IRA, or rollover balances

• High net worth clients delaying RMDs from Roth conversions

• Inherited IRA holders confused by the 10-year rule

🤯 Why They’re Confused:

• The rules have changed — again.

• They don’t know how it’s calculated.

• Their CPA only talks tax, not income planning.

• They think RMDs are optional or deferrable.

💬 Advisor Talking Points:

“RMDs aren’t optional — but how you handle them is.”
“Most retirees just take the money and pay the tax. But there are smarter ways to use that income — or offset it.”

“We can use your RMD to fund something meaningful — like long-term care, legacy planning, or guaranteed income.”

“We’ll calculate the required amount, discuss your tax bracket, and explore strategies that align with your long-term goals.”

🛠️ Smart RMD Strategies to Recommend:

• Redirect RMDs into tax-free life insurance (if insurable)

• Use RMDs to fund income annuities with LTC doublers

• Leverage RMDs to gift or transfer wealth intentionally

• Consolidate old accounts to simplify RMD calculations

• Time withdrawals quarterly or monthly to reduce tax spike

📈 Pro Tip: Show the Math

Clients often respond to simple visuals. A basic chart that shows:

• IRA Balance

• RMD Factor

• Required Withdrawal

• Estimated Tax Owed

• Optional Uses (spend, invest, insure)

This makes the whole concept feel less overwhelming and more strategic.

📣 Summer Outreach Ideas for Advisors:

• “RMD Readiness Review” email or mailer

  “If you’re turning 73 this year, you may be required to take your first RMD. Let’s make a plan now — before year-end surprises hit.”

• Host a “Tax-Smart Retirement Income” mini-seminar or webinar

  Position it as an educational workshop, not a product pitch. Include RMD rules, income options, and tax-saving ideas.

• Create a landing page with a free “RMD Cheat Sheet”

  Use it to capture leads from LinkedIn, emails, or postcard campaigns.

🔗 Want to Show Smarter RMD Options?

Pair your discussion with a MYGA Leaderboard example or annuity strategy that turns RMDs into guaranteed income, healthcare coverage, or legacy solutions.