Wealthy Client Ideas

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Aug 16, 2013 9:20 am


I have been working with a married couple for a few years.  They are both employed with 401Ks at their jobs that they are maxing out.  I manage a few IRA's for them that were 401K rollovers from previous employers.  The wife jsut got a promotion and depending on performance she can make anywhere from $500,000 to $890,000 this year.  In the past few years they have not contributed to their IRA's because they would receive no tax benefits.  I have tried to stress the importance of starting ROTH iras for tax free retirement income.  But maxing out a Roth is barely a drop in the bucket given their income.  Any suggestions?  I know we could put the money in a joint account but I would like to find something that is more tax efficient. 



I appreciate any suggestions.


Feb 12, 2014 4:17 pm

If she is making $500m a year- thats over the Roth limitations.
*Check out a LIRP

Mar 6, 2014 9:52 am

I would put her in a no-loan variable annuity with low M&E expenses and multiple investment options. These contacts are more tax-efficient than a joint account as long as she can park the funds until 59.5. I am not a big annuity fan, but these work well for your type of client. You can add a advisory fee and there are no contract periods, as with most loaded VA's, which are 4,7 or even 10 year contracts.
Jefferson National has a good one (Monument Advisor)