Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
With the markets in decline, I hate the thought of taking RMDs for 2022. I'm hoping that Congress will do as they did in 2000 (and in at least one other previous year) suspend the requirement of taking RMDs in 2022. Write your elected members of Congress and the Senate.
Be careful what you wish for. It was the Covid-19 scare in March 2020 that sent equities down around 30% (+ -) in just a few weeks’ time. Possibly the exemption applied to 2008? That year the S&P lost 37%. Let’s hope we don’t get there this year.
(However, I’m all for writing your Congressman on any number of issues.)
Sorry, but Congress is impotent and broken. The 2-party system has always arbitrarily shut-out a bunch of us. After moving to Hawaii, I discovered that the Primaries are "closed." (Just effing GREAT!) ...And one of those two Parties has, for some time now, stopped being a Party. It is an insurgency. The other Party resembles its counterpart in the Eisenhower era in terms of policies and outlook--- apart from the fringe element, whose latest Political Correctness push includes introducing Bills protecting the freedom to style one's hair however he/she wants it. "Hair discrimination." ORK. The ultimate silliness.......
RMDs? Not a worry for this low-income investor. Whether tax-sheltered or not, it changes nothing for me. At any rate, when I DO have to begin to take RMDs, I'll just re-invest the $$$ via my brokerage.
Regardless of what the markets are doing in 2022, my TIAA RMD is based on the value of my portfolio 12/31/21. At present, I am scheduled to take it in December. In 2020 I was taking monthly distributions, 3 or 4 of which had already been paid by the time the suspension was announced. I decided not to reverse those payments, but I could have. The suspension helped reduce taxable income for 2020, but it shot up for 2021. I suspect there will be losses in my taxable accounts this year so it won't matter much next April. If Congress effects a suspension this year, ISTM that it would help people of means, not those hurting from inflation and economic uncertainty.
The best cure for RMD is the Roth conversion. If I were 5-10 years younger I’d grab up some depressed growth funds today and do one. Yikes - With ARKK where it sits, how could you go wrong? That’s if you have a 5+ year time horizon. To the more cautious, there’s EM funds and some tech heavy funds to play with.
With a Roth there is no RMD. While I’m about 75% Roth, I like to save that $$ for a rainy day and so continue pulling small amounts from the traditional. Enough to meet RMD and than some. Probably nuts to be so conservative this late in life.
@ hank : Thank you. Now thinking of selling rather small Roth ,invested in FMIJX & etf to ARKK or one of the GP funds that are under some deep water at this time.
Comments
(However, I’m all for writing your Congressman on any number of issues.)
RMDs? Not a worry for this low-income investor. Whether tax-sheltered or not, it changes nothing for me. At any rate, when I DO have to begin to take RMDs, I'll just re-invest the $$$ via my brokerage.
With a Roth there is no RMD. While I’m about 75% Roth, I like to save that $$ for a rainy day and so continue pulling small amounts from the traditional. Enough to meet RMD and than some. Probably nuts to be so conservative this late in life.
Derf