IRA Maximization for those that want to leave a legacy. tax offset tax elimination - this is a great strategies for charities to distrubute to their membership legacy enhancement multi-generational spousal Roth IRA

2. Today we are going to be discussing the concepts of IRA
maximization and reviewing five different strategies. All of our
clients are different, in a different situation and each of these
strategies may or may not fit a particular client. We are not
trying to fit a square peg in a round hole. We put the client first
and that’s really what we want to do. These strategies are going
to allow us to transfer the value of the IRA efficiently and we
are going to potentially enhance the overall amount to the
beneficiaries.

3. So what is IRA Max? What is IRA Max to us?
Let’s talk about what IRA Max is not first. It’s not IRA rescue,
it’s not some bogus sales pitch that is being put out there by
other agents or insurance companies, we are not taking a
bunch of money out of it IRA, slamming it into an IUL. (Index
Universal Life) For more information on IRA rescue please visit
www.stopirarescue.com. This consumer protection website
was set up by a colleague that I work with and I have nothing to
do with his website. It’s just a great resource if you need more
information.
This is really a legitimate strategy and it’s about doing what’s
right. It may not be for all of our clients but it may be for a few,
and enhancing the legacy for a few for these clients can be
pretty significant. So like I said, this is going to be legitimate,

4. because these are wealth transfer strategies that can actually
help turn an IRA into one of the biggest possible assets for your
heirs at death.
These are very simple ideas but I think unfortunately a lot of
people are not talking about them. It’s kind of the out of sight
out of mind. It’s my belief that most advisor’s just don’t
understand the power of using life insurance in conjunction
with an IRA to make it a lot more efficient when it transfers to
the next generation. Some advisors are just focused on assets
under management and they don’t want to deal with life
insurance and that’s a shame because more people should be
hearing these stories than are.

5. So the question is, who can benefit from it?
Well there are quite a few people that can benefit from it but
let me give you a client profile. The three categories above
apply to IRA Max strategies but let’s talk about age. Obviously
we are dealing with an IRA, so we are dealing with qualified
assets, so we need to be at least 59 ½ right? In the example
that we are going to go through, we are typically going to use
70. The age we are using is seventy because 70 1/2 of course is
RMD time. But who does this fit? Individuals who don’t need
their IRA assets for their retirement income needs. These
people are not interested really in generating an income off of
it, rather they are interested in transferring it and really
creating a legacy for the beneficiaries. So really the question
that people should be asking is:

6. If things go the way you plan, what is going to happen with your
IRA?
It is a very important one because here is what most people do.
Most people, they don’t have a plan, they have a temporary
action. What they do is they take the RMD, they pay the tax,
they reallocate it, and they kick the can down the road. If you
have a pen and a piece of paper handy, here is a little exercise,
you can go through, because at the end of the day there is only
three places that money can go. So draw three circles and
write these letters in there. (LO, C, G) The L.O. that stands for
your loved ones, which can be your kids and it can be your
grandkids. The C, which stands for charity. The G, I don’t have
to tell many of you, it stands for government. We have found if
you ask people out of those three categories, where would you
least want your money to go, that most of them will cross off
the G first. So that is one of the strategies I will talk about

7. coming forward, but the main conversation about what we are
trying to accomplish is control. Control over what is happening
with that money. Most people don’t have an answer as to
what is going to happen to your IRA. As agents and advisors,
we can tell them what is going to happen with that money. If
you have your loved ones, a son a daughter named as a
beneficiary, it’s going to go to the loved ones and go to the
government but not in the portions that you think. If you
actually put the numbers on this page, people can be shocked
on how much is actually going to the government. So we want
to give them control over what is going to happen with money.
So how do we do that?
Here are the five strategies.
These are pretty basic strategies, basically what we are dealing

8. with is, where do we name the beneficiaries of the IRA and
where do we name the beneficiaries of life insurance.
Tax offset, helps minimize the tax burden your beneficiaries
receive due to inheriting the IRA. It’s done by using a life
insurance policy to offset the projected amount of income
taxes they would owe when they inherit the IRA. (Keep thinking
about those three circles as we go through this.)
Tax elimination, that’s going to cross that G off the list. This
strategy is for those that have charitable interests and also
want to leave assets to their heirs. Wouldn’t it be nice to be
able to give more to your favorite charity without taking away
from your children’s inheritance? The strategy is designed to
help eliminate income tax on the death of the IRA owner by
designating a charity as the IRA beneficiary. The charity
receives the IRA tax free and the beneficiaries receive the death
benefit from the life insurance proceeds tax free.
Legacy enhancement, maybe you just want to give more, we
just don’t want to take care of the taxes but we want to
leverage what we are going to give to the next generation. This
is done by reallocating the after-tax excess earnings from the
IRA into a life insurance policy that can potentially increase the
overall inheritance.
Multi-generational planning with IRA stretch is going to be the
most powerful one of them all. When you look at the numbers
it’s going to look ridiculous but it works and we can prove it.
This strategy is for those that want to create a financial legacy

9. that last generations. This strategy is based on the fact that
when an IRA is passed to the grandchildren, the tax deferral
period allowed by the IRS is often dramatically increased. If you
are looking to create a legacy for multiple generations this can
be an effective strategy. (You really need to look at the
number on this one to appreciate the effectiveness of this
strategy.)
Spousal Roth IRA, creates a plan to provide the money needed,
so your spouse can convert a traditional IRA to a Roth IRA and
create a financial legacy for your heirs. This strategy is really
similar to tax offset.
I have tried to keep this information basic to provide a 10,000-
foot overview if you will to give you some ideas without
overwhelming the reader with boring technical details. For in
depth analysis of the different case studies I have professional
marketing pieces that provide better details than what I can put
together in a short, readable, ebook.
So in conclusion, it kind of goes back to what I was trying to do,
where we were trying to create control. Think back to those
three circles, think back to what’s going to happen with that
asset. I’m not saying everybody with an IRA or significant IRA is
going to be a candidate for this, but we have turned that short
term action into a long term strategy. We have given them

10. control over what will happen. Maybe not full control because
uncle Sam is going to do what they are going to do but, we’ve
given them some control. Give us a call we will work with you
on an individual basis because there are so many variables that
go into this it really needs to be customized for your specific set
of circumstances. Below is my personal contact information.
Feel free to contact me with questions or to look at
hypothetical case studies. We don’t pitch a company or a
particular product, we put the client first utilizing the best
product to achieve the desired result for that particular client.
This is how generational wealth is created!