Quote:
Originally Posted by 2BNTV
I subscribe to the KISS theory, (keep it simple stupid).
I only apply the 4% rule for RMD, at 70 1/2 years old. That would put one at 95 1/2 years old.
Heck, if I make that age, I would be extremely happy. Besides, I figure that some of that RMD, would stay in other accounts, that would still be making money.
No one knows if medical cost would make one go broke, so one can only plan with some certainty. I for one, don't put too much stock in financial analysts that says, one solution fits all.
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Based on historical returns the RMD is better than the 4% because it uses the year end investment balance. But the RMD % increases each year.
See
http://www.irs.gov/pub/irs-tege/uniform_rmd_wksht.pdf for a worksheet on how to calulate the RMD.