RMD decision
Morgan Stanley informed me of an imminent RMD $8000. I’m losing over 14% in all investments with them. Why should I roll it over into a losing situation? I told them to send me a check instead and plan to invest it in a bank 11 month CD at 3+ %. Was that a wise decision?
I also missed the recent high i-bond interest rate because I got caught up in that having to verify my existence snafu. I filled out the form and still haven’t heard back . Can anything be done about that?
Terry Says
First of all, please ask them to withhold at least 20% from that RMD. It is taxable as ordinary income — on top of any other income you may receive. Sorry about the loss, but almost everyone lost money in the market this year!
Once you pay the taxes on that RMD you can do whatever you want– invest it, save it, spend it. But be sure to save enough for taxes!!!
