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Old 10-11-2017, 01:52 PM
 
29,779 posts, read 34,867,277 times
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Quote:
Originally Posted by cb2008 View Post
understand your motivation to educate. But you may want to consider posters know what they are talking about and respect their financial intelligence. Your responses would excellent to some other kind of query, not this and it is not helpful considering how much space you are taking up. I for one would have liked to see other responses that directly addressed the op’s post who took the effort to clearly explain her situation. Twice.
bb
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Old 10-11-2017, 01:54 PM
 
29,779 posts, read 34,867,277 times
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Quote:
Originally Posted by johngolf View Post
I answered the OP early on but I will clarify. I do not need my RMD's for living expenses. I reinvest them in the same Mutual Funds they came from the difference being the new ones are not IRA's.

I have Fund A, declared IRA and collect RMD from. I have Fund A, non IRA where I invest some of my RMD money.

I have Fund B, declared IRA and collect RMD from. I have Fund B, non IRA where I invest some of my RMD money.

I have Fund C, non IRA where I invest some of my RMD money.

As you can see, I still like Fund A and Fund B. A&B are with Fidelity. C in Vanguard Wellington.
This keeps your portfolio in place minus the taxes paid on the RMD.
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Old 10-11-2017, 06:32 PM
 
3,803 posts, read 2,016,600 times
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Not sure if this was tackled already, but why is RMD table start at 70 years. What is RMD factor then for those who wish to start withdraw at 62, 63, 64, 65 and so on until 69?
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Old 10-11-2017, 07:05 PM
 
3,803 posts, read 2,016,600 times
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Quote:
Originally Posted by mathjak107 View Post

if a balance of 1 million was generating A 40K income pre rmd's , you still need the same million to generate that same income . the fact you have to pull 100k rmd amount out does not make it extra money and you now have a 140k to spend so you think you can blow it or give it away . .. the 100k still needs to do its share and will just do its share of generation from a brokerage account instead of an ira .

don't blow this because of a misconception as to what is happening when you take rmd's .
Not sure where you are getting 100K from. A million bucks has a 27.4 factor so about $36K only.
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Old 10-11-2017, 09:32 PM
 
6,353 posts, read 5,159,916 times
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Quote:
Originally Posted by Yippeekayay View Post
Not sure if this was tackled already, but why is RMD table start at 70 years. What is RMD factor then for those who wish to start withdraw at 62, 63, 64, 65 and so on until 69?
Zero. RMD stands for required minimum distribution. If you withdraw before age 70 and a half, you are doing so voluntarily (because you want or need the money) and not because you are required to.
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Old 10-11-2017, 10:35 PM
 
Location: Silicon Valley
18,094 posts, read 22,960,701 times
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Quote:
Originally Posted by Nefret View Post
I'm interested in knowing what others do who have RMD's but do not need these funds for living expenses.

Some of my friends use this money for traveling, but I'm not really interested in traveling. Another friend puts his back into taxable mutual funds but he is already financially comfortable.

I guess, my feeling is, not knowing how many "good" years we have left, we should live it up a little and loosen up with our tight grip on our money.
What's an RMD?
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Old 10-12-2017, 02:38 AM
 
71,563 posts, read 71,730,589 times
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Quote:
Originally Posted by Yippeekayay View Post
Not sure where you are getting 100K from. A million bucks has a 27.4 factor so about $36K only.
my example was only using a hypothetical example of how you do not add the two together . i pulled numbers out of the air .

the point being your safe withdrawal rate is not what you were drawing plus the rmd you had to take.
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Old 10-12-2017, 02:43 AM
 
71,563 posts, read 71,730,589 times
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Quote:
Originally Posted by Yippeekayay View Post
Not sure if this was tackled already, but why is RMD table start at 70 years. What is RMD factor then for those who wish to start withdraw at 62, 63, 64, 65 and so on until 69?
there is no rmd factor before 70.50. nor would you want one . an rmd has nothing to do with what a safe withdrawal rate would be .

70-1/2 is the age the irs wants you to start to move out of your tax deferred retirement accounts via a schedule so you end up eventually getting all the money taxed by i think age 100 or so .

what you do with it is up to you and your personal situation. irt would be an awful scale for living off of so it has nothing to do with how much your safe withdrawal rate would be .
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Old 10-12-2017, 02:49 AM
 
71,563 posts, read 71,730,589 times
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Quote:
Originally Posted by NoMoreSnowForMe View Post
What's an RMD?
required minimum distribution .

mandatory distribution you have to take from retirement plans at 70-1/2 so the money can be taxed
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Old 10-12-2017, 08:38 AM
 
Location: Columbia SC
8,965 posts, read 7,741,639 times
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Quote:
Originally Posted by mathjak107 View Post
required minimum distribution .

mandatory distribution you have to take from retirement plans at 70-1/2 so the money can be taxed
There is an IRS formula for how much you must take. Google RMD calculator. Some additional information:

https://www.fidelity.com/building-sa...8E-g&gclsrc=ds
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