TIAA - Best location for planned end of year RMD's

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AudenHoggart
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Joined: Fri Jan 07, 2022 9:04 am

TIAA - Best location for planned end of year RMD's

Post by AudenHoggart »

Since I don't use any of current year RMD's for living expenses, I always withdraw it just before the end of the year. I also use this as the source for most of my tax withholding for the year. I've often moved funds for this from equities to "fixed income" at the start of the year, and rebalance through the rest of my portfolio, as needed.

For 2022, I'm thinking some combination of Inflation-Linked Bonds and the Stable Value fund for this purpose. My TIAA RMD for the year will be about $120K. (I also have space to add about $28K in the Real Estate fund.)

I have plenty of other funds in my liquid TIAA Traditional account (a little over a million) that I could use as a source of my RMD, but I'd rather not touch that as long as it earns the well-over-market 3% interest rate.)

I could also leave the whole RMD in equities, and then not need to do any rebalancing elsewhere in my portfolio. I'd just live with whatever the market did to my RMD amount over the year.

Recognizing that no one has a crystal ball, any thoughts about this? Thanks!
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