Current topic rolling around in my head is the required minimum distribution. Since my mother was affected "back in the day",
I went through some of her old statements. She is currently 84 and has had her IRA in the Vanguard Conservative Life
Strategy Fund since 2006, right about the time I started this board. Pretty sure at that time she was safer with the fund. ng
We set it up for the RMD to come out December 31st, with the thought of being invested as long as possible,
but it also worked to make figuring easy.
At the end of 2007 her account was $142,481 with the 2008 RMD figured at $7018.77 or 4.926%
By the time the following December rolled around her account was $114,503 before deducting the $7018.77,
so she started 2009 with $107,485, and had an actual, at the time, RMD of 6.129%.
My take from my short exercise is that RMD can force you to sell when you least want to, maybe a larger percentage than
you ever thought you might have to, and even if not reinvesting at that point, but letting dividends build as cash, at the
very least a person could really cushion a blow.
You have your RMD and then you have your real RMD. One more reason to love those divs. imho. |
