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Thread: 4 percent rule to high?
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Old 10-05-2015, 03:55 PM
pauld315 pauld315 is offline
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Quote:
Originally Posted by rjm1cc View Post
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.
True, but just because you have to withdraw more than 4% due to RMD, doesn't mean you can't just reinvest it into a taxable brokerage account that you open at Scottrade for example. Currently, I don't withdraw anything from my IRA's living only on SS and my pension. When I turn 70 1/2 I will, of course, be subject to making withdrawals from my IRA's but right now I just plan on spending the first 4% of that withdrawal and reinvesting the rest in a taxable account until I decide it is time to just blow it all !