My goal for my traditional IRA is to keep at least 2 years worth of RMD in cash the remainder is invested in conservative mutual funds - emphasis on value and dividends. I have done this by reverse dollar cost averaging. In other words within my iRA I convert enough from my equity mutual funds to cash to keep the 2 year RMD balance in cash.. I withdraw my RMD in January. In reality this really gives me at least 3 years to weather a bear market even if I stop converting during the down period. Just another way to approach this potential problem.
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