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Don’t Need Your RMD? Sexton Advisory Group’s Tips On How To Leverage It to Build Generational Wealth

Steve Sexton, CEO of Sexton Advisory Group, shares how to best repurpose your required minimum distribution with Medium.com.


If you’ve reached 70 years of age and you don’t need your required minimum distribution to fund your lifestyle in retirement, there’s a great opportunity here to reallocate these funds via financial structures that can help you build wealth for future generations. With over 20 years of personal finance and retirement planning experience as a financial consultant and CEO of Sexton Advisory Group in San Diego, CA, here are my top recommendations on how to utilize your RMD to build generational wealth.

  • First, consider using the RMDs to fund a guaranteed premium universal life insurance policy that is the equivalent of the projected value of your IRA, where your next generation is the beneficiary. If you’re in good health at 70 years of age and expect to live well into your golden years, this route could be extremely beneficial as it will allow you to pass along your life insurance death benefits to your beneficiaries tax-free.

  • Second, you could consider using your RMDs to invest in a brokerage account that lists your heirs as the beneficiary.

  • Third, use your RMD to fund a UTMA (Uniform Transfers to Minors Act) account, an account that allows you or an appointed custodian to manage the account until the minor is of age, for your grandchildren’s college fund.

  • Fourth, invest your in your children and grandchildren now to see them benefit from it while you are alive. Each spouse can make a $17,000 gift to their children or grandchildren every year. The children will receive the gift tax free.

For more retirement planning tips, please visit www.sextonadvisorygroup.com.


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