Stretch IRA Case Study

A typical scenario: Let's say you had an IRA valued at $400,000 at the time of your death and it passed onto your heirs as a lump sum. If they were in a 25% tax bracket they would receive $300,000. However, if you would have decided to take full advantage of compounding interest and 'stretched' that IRA out as income over the life expectancy of your children and grandchildren, the total that could end up being paid out from that $400,000 IRA is upwards of $2 million! A study conducted by Alliance found that the average adult child who inherits a lump sum of money has spent that sum within 72 days of receiving it. The sad fact is, in general, people do not appreciate money they did not work for. Keeping that in mind wouldn't it be nice to have a way to make sure the inheritance you left your children and grandchildren became the gift that keeps on giving throughout their lifetime?

Clearly there is a tremendous opportunity available for you and your heirs if you implement the Multi-Generational IRA. But this approach does not happen by accident! You need to make specific decisions to maximize the outcome for your IRA.

Something that is available to you is a detailed, computerized analysis of your IRA that shows how its potential can be unlocked to be a benefit and a blessing to your children and grandchildren for many years to come. It provides great assistance in deciding whether or not it would be in your best interest to implement the Multi-Generational IRA.

Notice: Learn more about our team and why you may want to consider contacting us. We are a Maryland-based business for local residents but we can also direct you to the appropriate agent in your area regarding the same strategies that we offer to improve your safe money management plan. Your future and your family will thank you for it!

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