Ask Terry Questions what to do with RMD funds

what to do with RMD funds

By Terry Savage on May 23, 2015 | Financial Planning / Retirement

I am taking my RMD but at present I (my wife and I) are not in immediate need of the money. Options are pay down a home equity loan which we pay 3% on, reinvest the money in a mutual fund (which means eventually we pay taxes twice – once on the RMD and the on the mutual fund when withdraw) or just put it in a non-interest paying checking account. Any other options?

Terry Says:  Well, I have no magic answer other than the above choices.  And which one, depends on your total financial picture.  You say you have a home equity loan.  Is that on top of a mortgage?  Is it a floating rate loan?  I would pay it down before the Fed starts raising rates.  But I have no idea how much liquidity you already have, or what other obligations.  So I will send you to a financial planner who can look over your entire situation and make the appropriate recommendation.  Go to — and look for a fee-only planner.

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