Mandatory withdrawals: Save or spend?

2 years ago I started taking the withdrawals. Fortunately I do not need it. Can it be reinvested? Can it be used to purchase other stocks, bonds, mutual etc? Or, should we keep it in a low interest bank account?

Terry Says:  That’s a lovely problem to have!  You can do anything you want with this money — go on a cruise, invest in the stock market, or put it in the bank for emergencies. But the fact that you are asking this question suggests to me that while you are in good financial shape, you don’t have a fully planned retirement. By that I mean considering future costs like possible need for assisted living, or whether you have a living trust (better than a will) and a healthcare power of attorney.  And that will get you thinking about what should be done with any money you have “left over” at the end of your life.

You need to get the big picture, so you know what you should be saving for!  That will give you peace of mind to spend the money if you want to.  Otherwise just leave the money safely in the bank.  Something will come along that will be costly — whether repairs to your home or your health. But if those other things I mentioned are lacking, you might benefit from talking to a financial planner — a FEE-ONLY planner, who has no incentive to sell you stuff at this stage of your life.  Go to www.FeeOnly.org to search.