Listener question: Can I use QLAC to hedge longevity risk when taking RMDs?

Everyday Wealth

Jean Chatzky

Investing, Business, Education

2 • 935 Ratings

🗓️ 1 September 2022

⏱️ 9 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Soledad, Jean, and Edelman Financial Engines wealth planner Jason Cowans answer a listener’s questions about required minimum distributions and discuss what approach may help mitigate long-term risks.

See omnystudio.com/listener for privacy information.

Transcript

Click on a timestamp to play from that location

0:00.0	This is Edelman Financial Engines Everyday Wealth,
0:06.6	This is Edelman Financial Engine's everyday wealth
0:10.1	with award-winning journalist Soledad O'Brien,
0:13.0	personal finance expert Jean Chatsky,
0:15.3	and Edelman Financial Engine's wealth planner,
0:17.6	Jason Cowles.
0:20.1	If you have a question or just something that is unique to you, your own personal situation,
0:25.3	we can get you some at least initial answers right here on the show.
0:29.2	So this week we have a listener named Joe.
0:31.3	He wrote in about RMDs and Kulex which is qualified
0:35.7	longevity annuity contract. So here's Joe's question. On a previous show you
0:41.1	spoke about RMDs and I'd like to have your thoughts on the planning
0:44.7	issue that leads up to the RMD requirement age of 72.
0:49.4	What do you think about using a Kulek to hedge longevity risk and at the same time it allows you to keep 25% of
0:56.3	total IRA assets up to $145,000 away from the RMD requirement until you start your income stream at age 84.
1:07.3	You are then only adding the yearly income amount to your RMDs along with your total IRA
1:12.0	amount. As a person that has a lump sum of 1.6
1:16.3	million dollars and no pension, I feel like it would be a helpful diversification
1:21.3	asset to least have some of my money out of the market with some
1:24.9	longevity risk protection for my wife and I who are both at the current age of
1:30.9	68.
1:32.8	Okay, Jason, so let's break it down for everybody.
	...

Transcript will be available on the free plan in -917 days. Upgrade to see the full transcript now.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Jean Chatzky, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Jean Chatzky and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.