Published by Taylor Financial Group
Dear Humans,
I don’t know if you know this, but I recently celebrated my 11th birthday! It was an event filled with leftover Thanksgiving turkey and extra treats. However, with great age comes great responsibility (or something like that), and my newest responsibility is figuring out what I’m going to do with my required minimum distributions (RMDs).
Now I know what you are thinking, “Lucky, you are only turning 11! You start taking RMDs from 401(k)s and IRAs at age 70 ½.” Well, my knowledgeable friend, you would be correct that humans only start taking RMDs at age 70 ½, but as a dog I must account for dog years. Therefore, I start taking my RMDs at age 11 (click here for Business Insider’s arguably best article on how to calculate your dog’s true age).
However, the problem with taking my RMDs is that I am not sure what to do with them. I don’t even need my RMDs for day-to-day living expenses because my favorite human, Debbie Taylor, already pays for my room and board, and I am not alone. According to the RMD Options study from Allianz Life Insurance Co., 80% of high-net-worth consumers ages 65-75 believe they will not need all of their RMDs for day-to-day living expenses. As a result, they are unsure what to do with the total amounts of these RMDs, and 32% of respondents don’t understand what this will do to their taxes in retirement.
In fact, according to Paul Kelash, VP of Consumer Insights at Allianz Life, “The 65-75 age group is most interested in tax-deferred growth of their RMD disbursements and may feel unsure about how best to use RMDs. In contrast, the 71-75 age cohort, who have already started taking their payments, is realizing they don’t need the additional money and are looking to leave a legacy – either to family or another beneficiary like a charity.”
In conclusion, people want to do different things with their RMD payments. Whether you want to use your RMDs to build a legacy or to grow your portfolio, the Taylor Financial Group team would be happy to help you achieve your financial goals. If you have any questions regarding your RMDs, feel free to contact the Taylor Financial Group team for assistance.
Till next time,
Lucky Taylor
