4 percent rule to high?

4 percent rule to high?


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Old 10-05-2015, 03:55 PM
pauld315 pauld315 is offline
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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 !

Old 10-05-2015, 04:30 PM
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manaboutown manaboutown is offline
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I heard of a fellow who spent almost all his money on wine, women and song. The rest he blew.
"No one is more hated than he who speaks the truth." Plato

“To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine
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Old 10-05-2015, 07:20 PM
NYGUY NYGUY is offline
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Originally Posted by manaboutown View Post
I heard of a fellow who spent almost all his money on wine, women and song. The rest he blew.
Love it!!
Don't take life too seriously, it's not like you're going to get out alive!!!
Old 10-24-2015, 08:17 PM
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Maxman Maxman is offline
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Bogle: Tough Decade Ahead for Equity Investors

Jack Bogle the founder of Vanguard and index style investments voices his opinion on the next 10 years. It is very sobering.
I'm not young enough to know everything
Old 10-25-2015, 06:05 AM
Villageswimmer Villageswimmer is offline
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Originally Posted by outlaw View Post
Don't worry. Work is good for the soul. I wish I had to go back to work.
Okay, I'll bite. Why?
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