Market volatility, inflation and just overall uncertainty is already a stressful mix for a retiree trying to determine the best strategy for withdrawing from a 401 – but some may be forced to take money out because of annual required minimum distributions, adding to investment anxiety.
“This year there is a lot more to consider and it depends on whether you need the money or are taking it because you are forced to do so,” said Byrke Sestok, a certified financial planner and president of Rightirement Wealth Partners. “Smart investors should have cash available in their investments to cover their RMDs so the investment performance shouldn’t matter as to when you take the RMD.”
Dollar-cost averaging is an investment method based on periodic payments, and its mission is to thwart the consequences of market volatility – it works when contributing to a retirement account as well as withdrawing from one, said Wheeler Pulliam, a certified financial planner and founder of Xponify Financial. “I would encourage retirees to start to take their monthly RMDs for the year and resist the temptation to wait to see if the market will go back up,” he said.
The deadline for required minimum distributions is Dec. 31, unless this is the first RMD an investor must take, then that date is pushed to April 1 of the following year . The amount an individual must withdraw depends on factors such as their account balance at the end of the prior year and their age, and can be taken in a lump sum or periodic installments .
Work a few years ….
This is stupid. If you’ve been invested for last thirty forty years you’re up huge and we’re only 13% off high in sp
I'm changing careers and need to pull from my retirement to pay for my final year of college and my rent, utilities, etc....Taking money out now makes me sick to my stomach
Keep working...... It'll be OK. 🤦🏼♂️🖋📃🧮
Guys rate my nude photos)
Many were smart by leaving their careers withdrawing in many cases with zero penalty at a reduced tax rate. Only to reinvest quickly and make 40-60% over the pandemic quarters. Also smart enough to roll to low risk before downturn and continue to increase holdings afterwards.
The boomer generation has been voting for these unsustainable growth policies perpetrated by both sides thinking they’ll all get to withdrawal at the end on top. Well, when you all start to pull out, a lot of you will be left holding the bag.
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
How remote-first crypto players could end the company HQCrypto players' decentralized ethos and a remote-work boom might spell the end of the glitzy, sprawling company HQ Also, extradition treaties. Apple could turn the giant circle in Austin into a homeless shelter or immigrant detention mansion. You know, do as they speak. I have already seen some Commercial RE razed for Residential. There is no land shortage, just NIMBY's and Banks trying to protect their equity.
Source: BusinessInsider - 🏆 729. / 51 Read more »