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Originally Posted by B-Man49
You definitely don’t understand RMD’s.
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I understand RMD’s and I understand the financial ramifications of retirement planning. I was a Third Party Administrator of Retirement plans for 40 years. I sold my company and retired in 2015. I did not file for Social Security until my 71st birthday so my SS benefit increased 40% (8% per year for each year after SSNRA. I had postured my account and my wife’s account so I had enough cash in our IRA rollover account to cover 8 years of RMD’s. Accounts were self directed in 4 funds and a fixed income account. I set our plan up so that we could rollover and transfer our accounts at retirement in kind rather than the normal cash out, roll it over into a self directed IRA with Vanguard. So the number of shares we rolled out of the 401(k) plan is the same number rolled into Vanguard IRA accounts. We take our RMD’s monthly and are paid out of the Vanguard Money IRA market cash account fund. The recent tanking of the market does not concern me because we are not liquidating any fund shares at a loss.
[Moderator Edit] We live comfortably on Social Security and RMD’s. The market will come back and the market decline did not impact us!
If someone was retiring and cashing out and rolling to an IRA in early March, you would have bought back in at a record market high! But within a 10 day period, your account would have been at a 10 year low and if you had RMD’s, it would have been based on previous year end balance (high) and would have required liquidation of shares at a lower per share price
RMD’s for the first year, must be made by 4/15 following the requirement date, them subsequent RMD’s must be made by 12/31, so in the first year if you take by 4/15 which is actually the previous year, you have to take the second by 12/31 so you get two in the first year!
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