Quote:
Originally Posted by justjim
Here is a thought. Most of us have worked hard, sacrificed, saved for our retirement and you just might want to take that RMD and do something "extravagant" with it. Life is uncertain and short at best. Just a thought........
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My RMD thoughts. Assuming you had to take some $$$ from IRA to meet your expenses and that was added to a pot of money including pension and social security. Let's say you only want or need 5k a year from your IRA. Suddenly, your 71 and you have to start withdrawals on your $500k IRA based on the RMD. That will be $18,867. This percentage calculator increases each year.
ROTH IRA you still take out $5k.
Vanguard and FINRA websites, among others, have an RMD calculator.
It's good to be aware of ROTH IRA vs Conventional differences early in your working and saving career.