I have recently heard from a reputable mutual fund company representative that an individual cannot establish a Substantially Equal Periodic Payment prior to age 45. Does anyone have any further information regarding this -- either substatiating or refuting this?

To put it bluntly, they're full of crap.


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Barry Picker, CPA/PFS, CFP
New York, NY

There are no minimum age requirements for establishing a series of substantially equal periodic payments. The IRS' life expectancy tables have expectancies as low as age 5!

Lower ages will, of course, generate small income amounts. Perhaps the mutual fund company doesn't want to fool with small amounts of income paid over a long period of time? But, to say that these payments cannot be established is baloney!

Good luck!