This idea was developed to assist those who have to take their RMD every year and don't really want or need the funds. The old clichè "that necessity is the mother of invention" really applies. Here, the necessity is the RMD required by the IRS. Through both good & bad economic times my clients say that "they just don't want to take the money out of their retirement plan (a "forced sale"), sell shares of stocks and bonds at a bad time, and then have to pay income tax on it if they're not in need of the money"! How can we, as advisors, turn a "required" sell into a voluntary "buy", lemons into lemonade? I started "connecting the dots" to formulate a strategy for individual's RMD needs.
The Required Minimum Distribution Reinvestment Strategy or RMDRS is a financial service provided by The Wright Financial Group. The service assists the client and the advisor in the retention of client assets and acquisition of new client accounts. The RMDRS service gathers the necessary information to assist clients and the advisor in how to best serve the client with their Required Minimum Distribution and its reinvestment. – Developed by TWFG