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04-30-2018, 01:59 PM
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#21
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Texas
Posts: 3,024
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Quote:
Originally Posted by marko
I wonder how real an issue RMD's really are for most people. Enough to invest in a particular fund?...
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I don't know about "most people," but my in-laws are 84 and 85 and well down the path of mental incapacitation (of varying forms and degrees). They wouldn't have a clue how to manage RMDs. Last 5 or 6 years, I've handled everything investment-related for them. Prior to that, they had a high-cost ML "adviser" picking stocks to sell and making the RMD. I moved them to an all-ETF portfolio at Fidelity, similar to mine. They're set up on the automatic RMD process, but because the portfolio is all ETF, I have to go in each December and sell a few shares so there's sufficient cash available for the system to distribute. I've thought about putting a chunk of their IRAs in a low-cost MF of some sort so the system automatically sells exactly what's necessary. But they rarely need the cash, so I'd still have to go in and buy something. Sounds to me like these funds are just an age-appropriate, auto-pilot MF portfolio paired with the auto-RMD process. Seems harmless enough except for the ER.
__________________
Retired at 52 in July 2013. On to better things...
AA: 85/15 WR: 2.7% SI: 2 pensions, SS later
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04-30-2018, 03:23 PM
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#22
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,012
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Quote:
Originally Posted by samclem
Calculating the RMD isn't even required, right? At the end of the year just log on to where the IRAs are and they tell you how much you have to take out in the following calendar year. Or, a customer could call and speak to a rep, I guess.
One challenge for someone who is disinterested in this stuff would be if the funds were split up at many places (CDs, Fido, etc). Each company can only quote the RMD for the assets they hold. This, plus the problem with possibly lost/misplaced assets and resulting tax issues, etc, are a reason that getting everything under one roof could be useful.
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I can see how for a lot of very elderly folks that might be too much to deal with. Taxes too.
__________________
Retired since summer 1999.
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04-30-2018, 04:31 PM
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#23
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Location: Kerrville,Tx
Posts: 3,361
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Quote:
Originally Posted by audreyh1
I can see how for a lot of very elderly folks that might be too much to deal with. Taxes too.
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All the better to rollover all the IRAs to one IRA at your favorite brokerage etc. Then the RMD calculation is done for you. Over the last several years I got all my IRAs to Vanguard, and then when megacorp decided to move the 401k to Fidelity from Vanguard, rolled the 401k to the Vanguard IRA. Note that only on and IRA can one do the QCD not on a 401k.
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04-30-2018, 04:54 PM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2017
Location: City
Posts: 10,337
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Quote:
Originally Posted by Cobra9777
I don't know about "most people," but my in-laws are 84 and 85 and well down the path of mental incapacitation (of varying forms and degrees). They wouldn't have a clue how to manage RMDs. ...
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Not arguing with your points at all, but it would seem that elders not being able to manage RMDs is only a tiny part of the problem. What about the rest of their financial lives? Financial abuse of elders goes on all the time. It would seem that whatever financial life preserver (relative, trust officer, guardian, etc.) that they have should also be able to handle the RMDs. No?
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04-30-2018, 10:26 PM
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#25
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,012
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Quote:
Originally Posted by meierlde
All the better to rollover all the IRAs to one IRA at your favorite brokerage etc. Then the RMD calculation is done for you. Over the last several years I got all my IRAs to Vanguard, and then when megacorp decided to move the 401k to Fidelity from Vanguard, rolled the 401k to the Vanguard IRA. Note that only on and IRA can one do the QCD not on a 401k.
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Good point.
Do they also take care of selling assets within the IRA to cover the RMD?
__________________
Retired since summer 1999.
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05-01-2018, 09:00 AM
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#26
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Dryer sheet aficionado
Join Date: Apr 2007
Posts: 32
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If you switched the ETF's to equivalent MF- then you can do it all automatically- either you can pick the percentage of each fund to sell or Fidelity can do it automatically.. If you pick the percentage it can serve as a way to rebalance. The account can then be programed to deposit the RMD cash generated in any account you wish.
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