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Post by xray on Dec 8, 2022 23:28:16 GMT
SmartAsset Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are ‘Way Down' This Year Brandon Renfro, CFP® Thu, December 8, 2022, 9:00 AM Ask an Advisor: When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are 'Way Down' This Year I will be 72 years old on Feb. 10, 2023. I have a traditional individual retirement (IRA) account. Most of the money is tied in stocks, and the stocks this year are way down. If I sell to pay the required minimum distributions (RMDs), then I have to sell for a huge loss. How do I avoid that loss and pay for RMDs? Any strategies?
For some retirees, required minimum distributions are irrelevant because the retirees need to withdraw the money to cover expenses anyway. So the fact that they are required to do it is pretty much moot. For others, which may include you, RMDs can become a real sticking point. They limit your control over your distribution schedule, tax management, investment strategy and estate plan.
If you have questions specific to retirement withdrawal strategies, a financial advisor can help.
Bear Markets and Selling at a Loss
Your particular issue isn’t hard to see. The S&P 500 is down about 17% as of late November. The specific stocks you own may be down even more than that. One of the basic behavioral tenets of successful long-term investing is to avoid panic-selling in situations like this. If you do, it’s possible that you’ll miss out on any potential future growth and simply solidify your losses. Holding on for the long term is likely a better call. In your case, it sounds as though you have that emotional reaction under control but feel backed into a corner by your RMD.
Timing Your First Required Minimum Distribution
As the name suggests, your RMD is required. You can’t just skip it. Otherwise, the IRS hits you with a penalty equal to 50% of the amount you should have taken but didn’t. That’s steep, so let’s certainly avoid that. Given that this will be your first required minimum distribution, however, you do have a little bit of wiggle room regarding when you take it. As things stand now you’ll be responsible for an RMD for 2023 – the year you turn 72 – thanks to the Setting Every Community Up for Retirement Enhancement (SECURE) Act. But you have until April 1 of the year following the year of your first required minimum distribution to physically withdraw the money from your account. For you, that would mean you could delay the distribution until April 1, 2024. That’s about a year and a half from now. Waiting until then to complete your first withdrawal could provide enough time for you to recover your losses. But there is no guarantee. Your stocks could rebound during that time, or they may fall more, making your problem worse. It is nonetheless an option you have.
Distributions and Their Tax Consequences
Consider too that delaying your first RMD until April 1 of the following year doesn’t alleviate the requirement to take an RMD for that year as well. You must take each subsequent RMD after your first by Dec. 31 of the applicable year, so you’ll be required to take two RMDs that year if you do decide to delay. In other words, if you take your 2023 RMD on April 1, 2024 you still have to take 2024’s RMD by Dec. 31, 2024. This may be a good choice for you, but you’ll want to know how it impacts your overall tax situation since you’ll have to include both distributions in your income.
Distributions In-kind
If locking in your investment losses is a primary consideration for you, and you don’t necessarily need the money from the RMD, in-kind distributions may be something to consider. The normal treatment for handling RMDs is to sell the necessary amount of investments to raise enough cash to cover the RMD, then distribute the cash. For example, if you must withdraw $50,000 to satisfy your RMD for that year, you might sell stock currently valued at $50,000, then withdraw the $50,000 in cash. Of course, that’s the issue, right? Stocks that are currently valued at $50,000 might have been worth more than $60,000 at the beginning of the year. If you sell now, the investment won’t get the chance to recover. An in-kind distribution may provide a workaround. Distributing assets “in-kind” simply means that you transfer or withdraw the actual asset, rather than selling first and withdrawing cash. This satisfies the RMD requirement but allows you to continue holding the investments. The current value of the distribution is still taxable, which is really the whole point of requiring mandatory distributions in the first place, so make sure that you either:
Have enough cash on hand already to cover the tax bill.
Sell a portion of the stocks you distribute to cover it If you withdraw stocks in-kind to fulfill your RMD, you need to transfer them into a taxable brokerage account. You can’t roll them into another tax-deferred account and you can’t use a Roth conversion. But you can then hold the investment for as long as you’d like in a taxable account. You’ll have to pay taxes on future dividends and realized capital gains, but that may be better than locking in your loss.
Bottom Line
You’re on track to be responsible for an RMD for 2023. But you have until April 1 of the year following the year of your first required minimum distribution to actually withdraw the money from your account. An in-kind distribution may provide a workaround against locking in losses when taking RMDs.
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Live Long and Prosper....
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Post by Chahta on Dec 9, 2022 15:06:28 GMT
Instead of locking in a loss, take the RMD be taken "in kind" and put in a taxable account.
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Post by fritzo489 on Dec 9, 2022 15:37:29 GMT
It's called planing ahead ! I'm guessing that fellow isn't the first, nor the last to wind up in this position. It's a good time to lay enough in CD's or treasury to cover the next few years. Have a good day, fritzo489
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Post by retiredat48 on Dec 9, 2022 16:28:15 GMT
xray above posted this investors concern: " When Taking RMDs, How Do I Avoid Locking in Losses? I'll Be 72 Years Old Soon, and My Stocks Are 'Way Down' This Year I will be 72 years old on Feb. 10, 2023. I have a traditional individual retirement (IRA) account. Most of the money is tied in stocks, and the stocks this year are way down. If I sell to pay the required minimum distributions (RMDs), then I have to sell for a huge loss. How do I avoid that loss and pay for RMDs? Any strategies?"
---------------------------------------------------- xray's reply post above covers a lot.
But briefly...taking RMDs does not in any way "lock in losses" on stock purchases.
For starters, xray notes you can take your RMD "in kind" meaning you move your stocks from the IRA into taxable...no selling required.
Second, the stocks were likely bought over time at much lower prices. Because the market is down 17% this year does not mean the investor assets is down 17% on a cost basis.
Next, this is the life of a retiree. If you need to spend down assets, you cannot expect them to be "at peak" every year...live with it. I have lived this way, for 28 years.
Lastly, I have developed a personal full strategy for how to go from stock funds, to cash, at strategic times, such that most IRA RMDs are made from peak gains. Would post sometime if requested. Many other investors have similar strategies.
R48
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Post by xray on Dec 10, 2022 1:14:02 GMT
retiredat48, steelpony10, Your (@retired@48): xray's reply post above covers a lot. A... But briefly...taking RMDs does not in any way "lock in losses" on stock purchases. For starters, xray notes you can take your RMD "in kind" meaning you move your stocks from the IRA into taxable...no selling required. B... Second, the stocks were likely bought over time at much lower prices. Because the market is down 17% this year does not mean the investor assets is down 17% on a cost basis. Next, this is the life of a retiree. If you need to spend down assets, you cannot expect them to be "at peak" every year...live with it. I have lived this way, for 28 years. C... Lastly, I have developed a personal full strategy for how to go from stock funds, to cash, at strategic times, such that most IRA RMDs are made from peak gains. Would post sometime if requested. Many other investors have similar strategies. Your(steelpony10): 1... I thought when you did an in kind transfer the basis was reset based on that value so you did “lose” any lost value before the transfer. No? 2... For us soon as I know what is required each January I make adjustments in our yearly cash withdrawal if necessary. We only hold CEF’s and PONAX in our TIRA. For us that excess and adjusted reinvested cash should work for years. 3... I can’t cite it so maybe I shouldn’t post this but raising the RMD age to 75 (secure act 2.0? starts raising the age in 2023) or dropping the RMD altogether (80% take out more) because of the confusion, not the tax, was being considered in a current senate bill. OCT 2022 ----------..........................................---------------------- retired@48: A... True, but in some cases some investors will be forced to "SELL" (lock in some losses) securities to meet their RMD (if not planned to have some "CASH" available for the RMD).... B... Very true. However, always however's, some of us sell (trade) securities when the MktPrc reaches a level that is considered "not sustainable" or the dividend has fallen <8.5%. We then buyback in down markets (when considered "cheap/undervalued). ... Further, some of us "DO NOT WANT" to take any "MAJOR" dollar losses (when very necessary in a consistently down market where all of the securities are dropping across all of the sectors) we will then immediately capture our current attained CapGains (before they disappear). Many of us will not play the "SINE WAVE" game (where securities go up 20+% and then down 20+% and then repeat the p[rocess over time). When a CEF or security in our portfolio is considered a "Buy and Hold forever" situation, we will then use a "SB" (sell, buyback immediately at the same MktPrc). A minor loss may/can occur (that we can live with) and we then reset the "NEW" LOWER MktPrc to ride back up if/when the market changes direction and then consistently rises.... C... Your strategy should be welcomed by all of us. We have been learning the market process (and all of the changes always occurring) and we always lack individual brainstorming. Weekends would be a good time for this when many investors are always looking for new ideas (like myself).... ---------- steelpony10: 1... See above "A/B" 2... See "A" above 3... Dropping the RMD might be a bad idea for investors who could end up with less money being available to them in their very senior years (when needed). The bill will probably never survive their committee process ------------------------------------------------------------------- Live Long and Prosper....
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Post by Mustang on Dec 10, 2022 2:15:10 GMT
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Post by Deleted on Dec 10, 2022 2:18:24 GMT
Why would it be any different than selling the securities in tax advantage account and buying the same securities in taxable account right away? if anyone can explain that would be great. Thanks
Jovan
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Post by Chahta on Dec 10, 2022 2:33:35 GMT
It isn’t any different. It’s emotional. retiredat48 is correct; live with it. Your portfolio should be able to withstand a 4% withdrawal rate. If your RMD is higher than 4% then the remainder should be put back to work in your taxable account. Maybe with more tax efficient securities.
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Post by saratoga on Dec 10, 2022 3:32:54 GMT
Next year will be my first year of full RMD (not just from IRA). I have two main tax-deferred accounts in two brokerages. I am thinking of diversification here also: taking one rmd by monthly distributions and the other by lump-sums. Either way may not matter much since I plan to reinvest all withdrawals. In any case, it would be good to hear R48 rmd strategies.
I also have the following rmd question for anybody: Suppose you are a university professor who retires after fall semester. Do you qualify for the `still working exception' for the year of the fall semester? (assuming the university grants the exception if applicable for the year).
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Post by steelpony10 on Dec 10, 2022 12:14:07 GMT
xray , Being forced to sell something for an RMD after you may have had huge gains over the years hopefully shouldn’t seem to be a problem. If that’s a surprise to someone it was probably just poor money management. It’s not totally through no fault of their own. We all know we deferred taxes for 40+ years in a TIRA and hopefully had huge gains over that time. retiredat48 , is pretty much correct on that point. As far as any seniors being short later in life some of us make our situation “luckier” then others. Some are truly snakebit which can happen to any of us. Others chose the wrong money manager, themselves. I learned the basics of money management at age 8 when I got my first 50 cent allowance. Spend some and put some aside “in case you need it for something some day”.
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Post by Deleted on Dec 10, 2022 12:22:48 GMT
xray , Being forced to sell something for an RMD after you may have had huge gains over the years hopefully shouldn’t seem to be a problem. If that’s a surprise to someone it was probably just poor money management. It’s not totally through no fault of their own. We all know we deferred taxes for 40+ years in a TIRA and hopefully had huge gains over that time. retiredat48 , is pretty much correct on that point. As far as any seniors being short later in life some of us make our situation “luckier” then others. Some are truly snakebit which can happen to any of us. Yes, RMDs are just a tax raising mechanism, just like any number of them.
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Post by retiredat48 on Dec 10, 2022 14:36:54 GMT
Hi all...glad to see such interest in the topic. Some comments to above posts: --yes, whether in kind, or in cash, the rmd amount is considered "income" for that years income tax purposes. Like, also, if your daughter is a doctor making $250,000 a year, and she inherits your trad IRA, she has to make withdrawals such that, when made, are ADDED to her income for tax purposes! --yes, you can sell a stock in your trad ira, take the cash, and buy it back immediately, forming a new basis in most instances. --the 4% Safe Withdsrawal Rates...SWRs...were developed based on actual market history going back to about 1920's. They assessed this as though people actually retired in the given years. Thus it includes some severe bear market times. --to saratoga...the "still working exception" does not apply to retiring professors, as they have never "worked". Just kidding saratoga. --re posting my IRA withdrawal strategy...I have a spouse in the hospital, that is consuming my time. If I find it easily in my library (M* has limited such access on some past threads), I will post same. R48
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Post by retiredat48 on Dec 10, 2022 14:50:02 GMT
To all...found it...from a previous post to Mustang ,mustang: -------------------------------------------------------------- Mustang...and others...here's my withdrawal strategy...been withdrawing for over 27 28 years now. Please critique. As background, I submit that for most investors, their main goal is you do not want to be withdrawing monies for retirement purposes at the bottom of bear markets. Fair enough, most feel this way. Also, many will be taking Req'd Min Distributions from their mostly untaxed portfolio (IRAs). I have done such IRA withdrawals for 27 years now (taking out money to live on), and found the following scheme to be my best method to reduce the risk of taking out during bear market bottoms, without holding excessive cash. Some call it "IMMUNIZING YOUR PORTFOLIO." Here it is...ponder...you can get up to two years of wait time without having to take an RMD or withdraw a penny: ------------------------------------------------------------ FWIW, here's what I do... First, I always try to own about a half years living expense worth of shorter term bond funds such that if the stock market crashes, can be tapped for spending/withdrawals (or added into the stock market!). It is part of my asset allocation. I do not own much "cash." These shorter term bond funds do not fluctuate much in total return. I opt for the higher interest, versus absolute safety of cash, MM Funds or CDs. Over time, this added interest adds up greatly. Then each December, I assess my asset allocation and previous stock and bond fund yearly performances to date. Then, I decide, and select one or more stock funds to take some off the table, to give a second years short term cash holding, if strategically beneficial. This means, if the stock market zoomed upward in a given year, I likely will take some off the stocks table...a form of rebalancing. For example, In Dec 2013, I sold some Energy Funds moving it to VFSTX for the second year withdrawals. Year 2014 I did not sell any that past December, but planned on selling Vanguard's Health Care Fund, for my RMDs throughout the year. This selling/taking RMDs was completed summer 2015. At the end of that year 2015, I further sold more from my Healthcare Fund to meet the upcoming 2016 year RMDs. This turned out to be a good sale also, as Healthcare declined a lot in 2016. So I have a two year cushion to market selling, as I can wait until end of 2017 to take 2017 RMDs. December 2019, I completely exited Energy Sector funds...as laggards, to build full cash for 2020 RMDs. With the stock "meltup" in January ...I sold more stock funds. With Covid, I sold more in early Febuary (All documented/posted real time, if anyone is interested). So I now have the full vaccination of two years worth of RMD distributions...IN CASH/SHORT TERM BOND FUNDS. Note that if you do this selling in December, and the market goes into an immediate bear market, you are set for 24 months before any cash replenishment need is necessary to take required RMDs. That is, current year RMDs come from the first bucket, and the next year RMDs need not be taken until December of that year, giving 24 months worth of wait. Bear markets usually recover a lot in this time frame. If money is absolutely needed monthly, live off a HELOC or equivalent for awhile...or from bond funds. Remember, in the vast majority of market history, bond funds go up when stock funds decline. Bond funds, part of ones allocation, are the usual source of spending monies in stock bear markets. Lastly, many say you cannot time the market. OK...but investors taking RMDs must realize you have to time the market, generally EACH YEAR, if you live on distributions like I do. You must sell some stock funds at times to replenish your bond funds, if you are taking everything from bonds. There's no escaping this fact. Otherwise, your stock/bond allocation gets distorted. Better to do such timing strategically...with a plan. With this December strategy, you immunize your portfolio withdrawals for up to 24 months...if you like. Few storms last longer than that. --------------------------------------------------------- critique/comments welcomed...have at it...good day! R48
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Post by Mustang on Dec 10, 2022 23:50:34 GMT
retiredat48, I assume all of the transactions are taking place within the tax deferred account and that RMDs are taken from the ST bonds when required. That is a good way to do it to make sure you never sell when the market is down. You sell stocks when you chose too. Simplification is one of my primary goals. Since I'm setting everything up for my successor to run. I have consolidated everything into a single balanced fund. I am now in my third year of withdrawals and things have been good, even this year. All capital gains and dividends are reinvested and they have more than covered my RMDs. So far I've not had to sell any of my starting shares. The percent that must be taken increases every year but since RMDs are based on the previous year's end of year balance that doesn't mean RMDs will always be bigger. They might be but it is possible that the dollar withdrawal might actually be smaller during a booming market. RMDs are a dynamic or variable withdrawal method. The actual dollar withdrawal follows market ups and downs but they follow it a year later. For example, my 2020 withdrawals were based on 2019's EOY balance. The market did well in 2020 so the 2021 RMD dollar amount increased 10.6%. Same with 2022. It was a good year and RMD dollar amount increased another 8.3%. This meant taking higher dollar withdrawals during a bear market. That is not what anyone wants to do. With the market doing poorly this year the 2023 RMDs will be lower. I'm guessing maybe 10-12% lower. If the market recovers then I will be taking lower withdrawals from a booming market. I suspect that over a 30-year retirement period things will pretty much even out. I have set up my RMDs to be withdrawn monthly. Taxes are automatically taken out and the money is automatically deposited in my checking account. Its just another paycheck. I then reinvest that deposit into a similar fund. I really don't see the difference between taking in-kind distribution or cash. And, if the market is down I'm both selling and buying in a down market.
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Post by liftlock on Dec 11, 2022 3:19:34 GMT
Next year will be my first year of full RMD (not just from IRA). I have two main tax-deferred accounts in two brokerages. I am thinking of diversification here also: taking one rmd by monthly distributions and the other by lump-sums. Either way may not matter much since I plan to reinvest all withdrawals. In any case, it would be good to hear R48 rmd strategies. I also have the following rmd question for anybody: Suppose you are a university professor who retires after fall semester. Do you qualify for the `still working exception' for the year of the fall semester? (assuming the university grants the exception if applicable for the year). saratoga , You must be employed at year end to qualify for the still working RMD exemption for any given year. The exemption only applies to employer plans, not IRA's or former employer plans. There are a few other exemptions and your employers plan must permit (not disallow) the exemption. www.forbes.com/sites/juliejason/2022/03/31/when-do-i-start-taking-401k-rmds-if-im-over-72-and-still-working/?sh=e02330421e4bIf you don't need your RMDs to live on then consider taking the RMDs in shares of assets that are down the most in price with the best best prospects for recovery in price. That way you can withdraw more shares from your tax deferred accounts for the same tax cost. If the shares recover in price and are subsequently sold in a taxable account , the gains will be taxed at favorable capital gains rates providing the 1 year long term holding period is met. If the shares recover in price in a tax deferred account the gains are taxed at ordinary income tax rates when they are withdrawn from the tax deferred account.
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Post by saratoga on Dec 11, 2022 15:53:46 GMT
liftlock,
When a (sufficiently old) professor makes a clean break and retires and does not come back, such situation is more or less clear: If the professor retires on Dec. 31 or earlier, he is responsible for RMD for the year. On the other hand, if the professor lingers on with part time teaching, the RMD situation can get blurry. Suppose one retires after academic year but is hired for (a reduced teaching) for fall semester. Fall semester typically ends in December and final grades submitted in December. However, his part time employment may end in early January - possibly to take care of odd-ends such as incompletes, etc. I guess you could go by the pay-end-date of your last check if you can find that out.
I have decided to take RMD in this situation: it is not worth the hassle.
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Post by Chahta on Dec 11, 2022 17:36:51 GMT
I have a Treasury due 3/2023. I’m thinking I would roll that over to mature in December 2023. My first RMD will be in 2024 if congress does not pass raising RMD age to 75. Taking the Treasury for my RMD puts no pressure on my TIRA.
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Post by yogibearbull on Dec 11, 2022 18:45:51 GMT
saratoga , it depends if your university PT job keeps eligibility for 403b participation. I think if you go, say, on 50-75% appointment (as part of phased retirement plan), then you would still be eligible for 403b (and can defer RMDs from that 403b). But if you retire totally and go back to part-time teaching as adjunct/visiting, you may not participate in 403b (so, have to take RMD from that 403b); a complicating factor may be that some universities now allow adjuncts to participate in 403b. If you have a university pension, it may also matter if the part-time job affects your pension eligibility (if you are back on regular payroll, it would; teaching as adjunct won't). This doesn't affect your other 401k/403b or T-IRAs. Those RMDs would kick in. I recently read about a case in a multi-campus system where an older person who switched campuses was denied RMDs from his "old" 403b because it was considered part of the same plan. Not that he liked/wanted to take the RMD, but was concerned of rule violation and IRS penalties.
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Post by xray on Dec 11, 2022 18:50:55 GMT
@jovan, Your: Why would it be any different than selling the securities in tax advantage account and buying the same securities in taxable account right away? if anyone can explain that would be great. Thanks, Jovan
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Depends on our individual strategy play. With that said....
-Many of us treat "TAXABLE" accounts as our 1st initial MktBuy option to buy something (of an unknown current performer) that we would like to try out and see if it is a good Mkt buy or not (by our own initial individual analysis). If proven out (over our specified "TIME" in portfolio factor), we then sell the taxable and buy not in our "Tax Advantage Account"....
-Selling in our tax advantage is usually our "Last Resort" for getting rid of a current non-performing asset that will not perform in "EITHER" a up/down market situation. Normally, a lot of us will "reduce" our shares (CapGains being taken) and then buyback the sold shares at a later date (market recovery). We then dollar cost average (previous MktBuyPrc with current MktBuyPrc) for what we have done, and when the MktPrc increases "again", we start all over. GLP is a great example of this when a lot of us bought our initial shares @ $18+ and have been using this analysis methodology.The $18+ is now has grown to a "$32" situation....
Hope this helps a little....
Live Long and Prosper....
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Post by yogibearbull on Dec 11, 2022 18:58:44 GMT
@jovan, xray, in-kind RMD eliminates out-of-the-market issue. If you sell in T-IRA and buy in taxable, you may have to wait for T+1 or T+2 settlement of funds before transferring funds, UNLESS you have cash available in the taxable a/c or it is a margin a/c.
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Post by xray on Dec 11, 2022 19:00:53 GMT
steelpony10, Your: Being forced to sell something for an RMD after you may have had huge gains over the years hopefully shouldn’t seem to be a problem. If that’s a surprise to someone it was probably just poor money management. ---------- Being forced to sell something for an RMD is sometimes a good thing IMHO. If all of our securities in our portfolio's are rising (and performing beyond our expectations) consistently (" UP" market from a previous down Market, and one is currently fully invested) we will have to make some hard choices within the portfolio (or outside the portfolio).... Live Long and Prosper....
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Post by xray on Dec 11, 2022 19:12:23 GMT
retiredat48, Your: With this December strategy, you immunize your portfolio withdrawals for up to 24 months...if you like. Few storms last longer than that. -critique/comments welcomed...have at it...good day! R48 ---------- Appears to be a "complex" system procedure to analyze (works for you) because of the many individual choices that you have chosen to make. Interesting, will have to study this for a while (probably 3-6 months compared to market movements).... Live Long and Prosper....
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Post by saratoga on Dec 11, 2022 20:34:51 GMT
YBB, good point. I asked the university whether an adjunct could participate in 403b. No answer. Thus, I focused on the other aspect - whether my employment as an adjunct would end before the end of the year or not. In any case, enough uncertainty over uncertain benefit, so I am taking RMD.
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Post by liftlock on Dec 11, 2022 22:46:26 GMT
liftlock, When a (sufficiently old) professor makes a clean break and retires and does not come back, such situation is more or less clear: If the professor retires on Dec. 31 or earlier, he is responsible for RMD for the year. On the other hand, if the professor lingers on with part time teaching, the RMD situation can get blurry. Suppose one retires after academic year but is hired for (a reduced teaching) for fall semester. Fall semester typically ends in December and final grades submitted in December. However, his part time employment may end in early January - possibly to take care of odd-ends such as incompletes, etc. I guess you could go by the pay-end-date of your last check if you can find that out. I have decided to take RMD in this situation: it is not worth the hassle. Taking the RMD would be a safe move. In the situation you describe, the employer should be able to advise their employee about the date they will be considered to retired and no longer working for the employer. I am not an employment expert but common sense tells me that any larger employer is going to keep track of such things. One reason would be to make sure they comply with the terms of any qualified employee benefit plans.
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Post by retiredat48 on Dec 12, 2022 5:22:50 GMT
retiredat48 , Your: With this December strategy, you immunize your portfolio withdrawals for up to 24 months...if you like. Few storms last longer than that. -critique/comments welcomed...have at it...good day! R48 ---------- Appears to be a "complex" system procedure to analyze (works for you) because of the many individual choices that you have chosen to make. Interesting, will have to study this for a while (probably 3-6 months compared to market movements).... Live Long and Prosper.... at xray ,...who stated: It may appear to be a "complex system to analyze...because of the many individual choices I have chosen to make." The examples may seem complex, however, perhaps because you are unfamiliar with my portfolio. Most investors know their own personal portfolio inside out. They know which funds are lagging, or not. What funds are performing best. I almost have in my mind a December strategy when we enter December. And sometimes the following year will involve reducing investments in a non-favored asset....over time., as the strategy. Sometimes I take a big slug in January...like in 2020 Jan meltup. But any investor who utilizes "buckets" has to have a plan or strategy to refill buckets. One could say having a larger number of funds, makes this task easier. But there is no ducking it--you must act. R48
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