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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

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 Each year, billions of dollars in RMD funds are withdrawn.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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs