This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Investment Professionals May Miss Critical Opportunity To Retain Millions In Assets And Enhance Client Relationships

JERSEY CITY, N.J., Oct. 25, 2012 /PRNewswire/ -- Investment professionals are missing a critical business opportunity if they do not help their impacted clients reinvest their Required Minimum Distribution (RMD) assets by December 31, 2012. The Internal Revenue Service can levy a 50-percent penalty on individuals who do not take their RMD from an Individual Retirement Account (IRA) or a non-spousal inherited IRA by the deadline. Investment professionals can not only help their clients avoid this charge but they can also boost their business by assisting these clients in reinvesting their RMD assets.

RMDs represent a tremendous opportunity for investment professionals. Each year, billions of dollars in RMD funds are withdrawn. The Investment Company Institute (ICI) calculates that Americans hold $5.1 trillion in IRAs, yet only one-third of all households taking traditional IRA withdrawals in tax year 2010 reinvested or saved the withdrawal amount in another account with the same financial firm.

Fortunately, advisors have many solutions for reinvesting a client's RMD funds. One of these is an asset management account (AMA), such as Pershing's Corestone Account™. Customers can set up automatic distributions into an AMA and access their funds whenever they are needed. They can use AMAs to handle daily activities, such as checking, investing and bill payments, in one place.

"Retirees are always looking for simple, efficient ways to manage their financial needs. And investment professionals are always seeking turnkey solutions to solve their clients' challenges," said Katie Swain, director of product management and development for Pershing. "An AMA is a great place for RMD assets because it enables clients to hold their cash and investments in one easy-to-access place."

For clients, best-of-breed AMAs bring various advantages, which could include—depending on the AMA—unlimited check writing, a debit card, fee reimbursement on ATM use, dividend reinvestment and loyalty programs.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,686.69 -59.29 -0.33%
S&P 500 2,104.43 -4.20 -0.20%
NASDAQ 5,129.2280 +0.4430 0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs