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I would like to know how many active MFO's use a set withdrawal rate plus inflation adder or just take their required RMD's. I'd be of the later group. A simple life style compared to an active , keep up to the Jones . My auto will be do for collector plates in 3 years ! Hopefully the chips arrive in plentiful supplies so I can purchase a new vehicle. Stay warm, Derf
I have three puddles of retirement income: Roth IRA, T-IRA and HSA. I have pension, but no Social security.
Until 65 I will be contributing to my HSA and managing my income to maximize my ACA (Affordable Care Act) premiums.
From 65 to 72 I plan on managing withdrawals / conversions from my T-IRA to the extent that I can maximize my (15%) tax bracket. At 72 RMDs will start.
RMDs percentages increase each year. Depending on your T-IRA balance, these RMDs could be more than one needs to spend.
Do you find you spend your entire RMD or does some end up puddling in a taxable account?
@bee ; "Do you find you spend your entire RMD or does some end up puddling in a taxable account? At this time all of the RMD goes into taxable. When I retired I left enough in cash to carry RMDs for a number of years. Thus no need to sell any equities in a down market to cover RMD's. That turned out NOT to be the right move as for the last 12 years Mr. Market has done very good ! We'll see what the next 12 years brings. @yogibearbull : thanks for the new RMD table
Invested in gold (Barrick, a miner) in uncertain time like now. The fund often hold small % of gold. Invested in foreign stocks for lower valuation relative to US stocks. Concerns about higher interest rate and stagflation as in the 80’s.
There are many current issues in the U.S. / world which are making investors nervous. It's difficult to remain optimistic due to inflation, future rate hikes, COVID-19, potential invasion of Ukraine, etc. However, we have little control over these issues. IMHO, it's best for investors to develop a decent plan they can live with and then tune out the noise. Of course, this is easier said than done!
There are many current issues in the U.S. / world which are making investors nervous. It's difficult to remain optimistic due to inflation, future rate hikes, COVID-19, potential invasion of Ukraine, etc. However, we have little control over these issues. IMHO, it's best for investors to develop a decent plan they can live with and then tune out the noise. Of course, this is easier said than done!
Not sure about that @Sven. I think it's a pretty current interview from comments made. He makes reference to "the 10 year treasury being under 2%... been there since last year 2021..." A chart shown on mega cap 8 stocks is dated Feb.4, 2022. This interview may have been done a week ago.
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Mr. Bernstein believes future inflation may be higher than expected. According to his observations, many portfolios are not properly positioned for this scenario. Mr. Bernstein is very bullish on "conventional" energy.
"People own what they like. People own portfolios which mirror their view of the world. What if they're WRONG? True diversification means you need to hold some stuff that you DON'T like." Makes a lotta sense.
Basically, yes. Banks can raise lending rates and regional banks benefit from higher mortgage rates in today’s housing market.
Two ETFs were mentioned by Ms. Mack on energy: Energy Select Sector SPDR, XLE and Vanguard Energy, VDE.
Energy is the best performing sector this year. The above ETFs are volatile as well.
The other interview from Jeffery Schulze is also quite informative on inflation when he compares Fed chairman Powell to Volker. Schulze doesn’t see a rate hike-induced recession based on the 12 economic indicators that Clear Bridge uses.
Comments
Stay warm, Derf
I have three puddles of retirement income: Roth IRA, T-IRA and HSA. I have pension, but no Social security.
Until 65 I will be contributing to my HSA and managing my income to maximize my ACA (Affordable Care Act) premiums.
From 65 to 72 I plan on managing withdrawals / conversions from my T-IRA to the extent that I can maximize my (15%) tax bracket. At 72 RMDs will start.
RMDs percentages increase each year. Depending on your T-IRA balance, these RMDs could be more than one needs to spend.
Do you find you spend your entire RMD or does some end up puddling in a taxable account?
Here's @yogibearbull's RMD chart:
https://www.kitces.com/current-vs-new-uniform-lifetime-table-rmd-as-a-percentage-of-account-balance/
At this time all of the RMD goes into taxable.
When I retired I left enough in cash to carry RMDs for a number of years. Thus no need to sell any equities in a down market to cover RMD's. That turned out NOT to be the right move as for the last 12 years Mr. Market has done very good !
We'll see what the next 12 years brings.
@yogibearbull : thanks for the new RMD table
Invested in gold (Barrick, a miner) in uncertain time like now. The fund often hold small % of gold.
Invested in foreign stocks for lower valuation relative to US stocks.
Concerns about higher interest rate and stagflation as in the 80’s.
It's difficult to remain optimistic due to inflation, future rate hikes, COVID-19, potential invasion of Ukraine, etc. However, we have little control over these issues.
IMHO, it's best for investors to develop a decent plan they can live with and then tune out the noise.
Of course, this is easier said than done!
"New shit has come to light." -----Jeffrey Lebowski. (aka "The Dude.")
exoskeleton-and-exosuits-in-the-workplace
eksobionics
top-10-companies-in-exoskeletons-market
A fund like FSMEX may be exposed to this type of Technological Innovation.
According to his observations, many portfolios are not properly positioned for this scenario.
Mr. Bernstein is very bullish on "conventional" energy.
Two ETFs were mentioned by Ms. Mack on energy: Energy Select Sector SPDR, XLE and Vanguard Energy, VDE.
Energy is the best performing sector this year. The above ETFs are volatile as well.
The other interview from Jeffery Schulze is also quite informative on inflation when he compares Fed chairman Powell to Volker. Schulze doesn’t see a rate hike-induced recession based on the 12 economic indicators that Clear Bridge uses.