RMDs – Dollar cost averaging ?
In building our retirement nest egg, dollar cost averaging with our investments worked very well! Is there a similar approach to taking RMDs monthly each year?
Terry Says
You’ll calculate your next year’s RMD based on the year end balance(s) in all your retirement accounts at year end this year.
Then you can ask your custodian to send you a monthly amount — minus withholding for income taxes — every month, direct-deposited into your bank account.
That way you won’t make your withdrawal at an inopportune time.
However, I’d suggest having the full amount of the annual RMD in cash inside your IRA by the start of the year.
