IRA asset allocation prior to RMDs

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BagOhan
Posts: 5
Joined: Fri Apr 09, 2021 9:43 am

IRA asset allocation prior to RMDs

Post by BagOhan »

I am scheduled to start withdrawing RMDs next year. What asset allocations are best for IRAs in preparation for RMDs?? Appreciate feedback & suggestions. Thanks in advance.
dbr
Posts: 46137
Joined: Sun Mar 04, 2007 8:50 am

Re: IRA asset allocation prior to RMDs

Post by dbr »

BagOhan wrote: Wed Jan 26, 2022 10:18 pm I am scheduled to start withdrawing RMDs next year. What asset allocations are best for IRAs in preparation for RMDs?? Appreciate feedback & suggestions. Thanks in advance.
The same asset allocation as at all the rest of the time. Preparation for RMDs is not a thing.
Dandy
Posts: 6701
Joined: Sun Apr 25, 2010 7:42 pm

Re: IRA asset allocation prior to RMDs

Post by Dandy »

vanguard allows you to take RMDs Proportionally which tends to help rebalancing issues.
exodusNH
Posts: 10249
Joined: Wed Jan 06, 2021 7:21 pm

Re: IRA asset allocation prior to RMDs

Post by exodusNH »

BagOhan wrote: Wed Jan 26, 2022 10:18 pm I am scheduled to start withdrawing RMDs next year. What asset allocations are best for IRAs in preparation for RMDs?? Appreciate feedback & suggestions. Thanks in advance.
Once you've decided your asset allocation, you should store as much as your bond allocation in the IRA as possible. Your taxable accounts should hold all of your equities.

If you wind up with more money than you need due to the RMD, invest the excess in equities in a taxable account. Then switch that amount in your IRA to bonds. This holds your AA steady.
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