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Why let RMD amounts and timing dictate your portfolio holdings? Your holdings should reflect the entire gamut of your risk and investment strategies. If you are that uncertain about what 2019 may hold, then maybe you consider what your holdings are now and change them accordingly.
By the way, I take RMDs and determine what to cash out on that basis. I have no current plans to change my investment mix in the near future, but I think about a lot. The biggest risk for those of us taking RMDs, which I am sure is your concern, is that the year end balance driving the next year's withdrawals will decline for some reason and you will be forced to withdraw a larger amount from a smaller pie. If I believed that was the probable event, I'd cash out today and buy back everything when the price was much lower. Alas, I don't have that knowledge and have decided to sit tight for the time being.
Since your RMDs are calculated based on balance of total IRAs or 403b or whatever, the amount you withdraw from a smaller TOTAL sum would be smaller than if the total of the retirement accounts had grown despite having an RMD taken out...
RMDs are approximately 3.8% of your funds. So, since the Rule-of-Thumb withdrawals is pegged at 4% a year it is not a terrible burden on your accounts. I would only place about 6 months living expenses in cash as there is no return. My strategy at the moment is to place the 4% into tax free bonds.
Of course, that is only my opinion at the present time. It might change as the economy does its rollercoaster course thru space...
they are only that low in the first 2 years . the percentage goes up as you age.at 70.50 they are 3.65% , by age 80 they are 5.35% , at 92 they are 9.80%
Since your RMDs are calculated based on balance of total IRAs or 403b or whatever, the amount you withdraw from a smaller TOTAL sum would be smaller than if the total of the retirement accounts had grown despite having an RMD taken out...
Isn't that accurate?
Of course that is true, as your RMD is calculated based on your age and the Dec 31 account balance in the previous year. That's the flip side of what I said, but not the concern raised by the OP.
if your spouse is 10 years younger they calculate rmd's differently on a different chart . had i known that i would have gone to the local college for a wife .
"say ,did i tell you ,that you look just like my next wife ?" ha ha ha
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