Mrs. Ruffles inherited an IRA that must be drawn down completely in 10 years. It’s up in the air as to whether it will need to be drawn down proportionally over the 10 years (as the IRS recently proposed) or can be taken out at any time and in any amount.
I’m trying to come up with the best investment/withdrawal strategy to maximize the IRA’s value and minimize the risk of getting caught in a downturn.
My thoughts so far:
1. Invest in a 2032 Target Date fund with an automatic glide path to the end date.
2. A moderate allocation approach (either as a single fund or combination of funds).
3. Ignore the 10 year deadline, apply our typical investment strategy, and take withdrawals as in-kind rather than as cash to allow for recovery from drawdowns.
Any other ideas/refinements that I haven’t considered?
Comments
401k and trading accts 90% stocks and 2040 TDF /indexes /etf -10% bonds+ fixed incomes + cash
2 yrs before retirement will changed redistribute to 55/45 and open -rolled ecerything to 401k. After take 5 -7% RMD out per yr until I part this Earth to limit tax situations (hopefully w social security 401k and rmd should be enough get by and travel retire)