euro
Thinks s/he gets paid by the post
- Joined
- Oct 4, 2015
- Messages
- 2,350
Interesting article by Schwab regarding the RMD situation of 2022. I have not paid much attention to this as I'm not RMD age yet, but they raise an important point and offer a few possible solutions.
https://www.schwab.com/learn/story/managing-rmds-during-down-market?cmp=em-XCU
Because the market was within a few days of its high at the RMD key date of Dec 31, 2021, the RMD hit will be particularly hard this year. And, if the RMD comes out of stock heavy accounts, it means selling at low stock prices. Something we try to ovoid for obvious reasons. In addition, many RMDs are on "autopilot", meaning that the withdrawals could be done across the entire account, instead of, say, pulling from money market accounts (if they exist) only.
In any event, I thought this was a topic at least worth contemplating.
https://www.schwab.com/learn/story/managing-rmds-during-down-market?cmp=em-XCU
Because the market was within a few days of its high at the RMD key date of Dec 31, 2021, the RMD hit will be particularly hard this year. And, if the RMD comes out of stock heavy accounts, it means selling at low stock prices. Something we try to ovoid for obvious reasons. In addition, many RMDs are on "autopilot", meaning that the withdrawals could be done across the entire account, instead of, say, pulling from money market accounts (if they exist) only.
In any event, I thought this was a topic at least worth contemplating.