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Old 10-02-2017, 01:55 PM
 
549 posts, read 254,821 times
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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.
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Old 10-02-2017, 01:57 PM
 
Location: 5,400 feet
2,627 posts, read 2,585,455 times
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Starting next year, my IRA may be writing some checks to charities.
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Old 10-02-2017, 02:36 PM
 
Location: OH>IL>CO>CT
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Don't forget to put some aside for future medical, nursing home, care giver, etc expenses.
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Old 10-02-2017, 02:38 PM
 
29,815 posts, read 34,900,894 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.
Reinvested in after tax accounts for any future needs etc etc. Still investing independent of RMD's.
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Old 10-02-2017, 03:55 PM
 
6,312 posts, read 4,757,627 times
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Personally I spend a lot of money beyond what I need to live on. That would include expenses for travel, photography, course work, eating out and a great many other things.
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Old 10-02-2017, 03:59 PM
 
Location: Florida -
8,767 posts, read 10,862,335 times
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Same situation. We plan to help grandkids with college, pay taxes and invest the balance in after-tax accounts (2018 start).

Last edited by jghorton; 10-02-2017 at 04:21 PM..
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Old 10-02-2017, 04:20 PM
 
Location: Central Massachusetts
4,800 posts, read 4,856,396 times
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Quote:
Originally Posted by TuborgP View Post
Reinvested in after tax accounts for any future needs etc etc. Still investing independent of RMD's.
that is exactly the best idea.

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.
See the above from TuborgP. You should set up an account at a brokerage like Vanguard or Fidelity. Invest it in some low risk mutual funds like an income fund where it is built around an investor that will just take it for income but you need not draw from it. It will require a minimum of 1k to make on your initial investment but any amount can be added later at any time. You can also draw any amount from it paying only capital gains on the investment.
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Old 10-02-2017, 05:06 PM
 
Location: Sylmar, a part of Los Angeles
4,002 posts, read 2,552,498 times
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I am the poorest person you ever heard of who has a investment advisor. He handles everything. He takes the RMD money out of my IRA and puts it in another account.
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Old 10-02-2017, 05:10 PM
 
2,601 posts, read 5,303,505 times
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You can spend it or you can save it or you can give it away.

There is one really bad option and that is to not take it at all.
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Old 10-02-2017, 05:40 PM
 
29,815 posts, read 34,900,894 times
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Quote:
Originally Posted by oldsoldier1976 View Post
that is exactly the best idea.



See the above from TuborgP. You should set up an account at a brokerage like Vanguard or Fidelity. Invest it in some low risk mutual funds like an income fund where it is built around an investor that will just take it for income but you need not draw from it. It will require a minimum of 1k to make on your initial investment but any amount can be added later at any time. You can also draw any amount from it paying only capital gains on the investment.
Vanguard is a good choice. Another possibility is a after tax account with the same firm the tax shelter is with if it is a good firm.

We have after tax funds with three brokerage houses. We have one the same company as our 403 and it makes the transfer easy. Why 3? It evolved that way over time. Vanguard is now the main one and will get fed the most over time.
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