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RMD’s/CARES Act

By Terry Savage on May 17, 2020 | Financial Planning / Retirement

Hi Terry –

I am a 71 years-old retiree who has been receiving RMD monies from my pension and 2 annuities since January. I have a considerable sum in a Vanguard IRA (RMD burden of $9,000/year) that has not been touched. My question is if I don’t need the Vanguard portion can I leave it there?

Terry Says

By all means leave it there — but where EXACTLY is ‘there”. Vanguard has a lot of mutual funds, including money market funds. So you should know exactly which funds you are invested in, and how much risk you are taking. Talk to a Vanguard representative. At this stage of your life, and the market, it is perfectly fine with me if you want to leave most of it in a money market fund! But you should knowingly make that decision.
PS You are not required to take an RMD in 2020.

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