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by David Szeremet, JD, CLU, ChFC on Aug 27, 2018 9:00:00 AM

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Deferred Income Annuity Helps Clients Retire with Confidence

MetLife's new Guaranteed Income Builder helps address the concern of running out of money in retirement. Prepare your clients before it's too late! 

Deferred Income Annuity Helps Clients Retire with Confidence


MetLife’s new Guaranteed Income BuilderSM deferred income annuity helps address a top concern of today’s retirees: running out of money in retirement. Now available as a qualifying longevity annuity contract (QLAC) for individual clients, the product can help clients build a “personal” pension and add certainty to their retirement by providing guaranteed income for life.

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“As part of a holistic financial plan, clients can use the guaranteed stream of lifetime income that the product provides to supplement other income sources and cover everyday expenses throughout retirement,” says Elizabeth Forget, executive vice president of MetLife Retail Retirement and Wealth Solutions.


“Knowing that their baseline needs will always be taken care of throughout retirement can, in turn, give clients the confidence to invest their other assets more aggressively.”


Until recently, individuals who used qualified IRA or qualified defined contribution (DC) retirement plan assets to purchase a deferred income annuity could not defer payments beyond age 70½ without taking RMDs from their IRA. However, in July 2014, the U.S. Treasury issued final regulations on QLACs that allowed individuals to do this for the first time.


When a client purchases Guaranteed Income Builder as a QLAC, the portion of their IRA balance that they used to buy it is excluded from the funds used to calculate the RMDs they are required to take beginning at age 70½. Clients can then begin income payments at a chosen start date, which can be as late as age 85.


By allowing clients to defer a portion of their IRA RMDs until their chosen start date, Guaranteed Income Builder gives them a significant level of flexibility to manage both their assets and tax obligations. The product provides advisors with a new tool—only recently available to them in the wake of the Treasury decision—that further enhances their ability to build strong, holistic financial plans for their clients.


Visit http://metlife.com/income for more information


This article appeared in Advisor Today


Topics: Diverse Markets/ Retirement Planning