Need to take RMD for the first time this year from Star Fund...will reinvest it in a non-retirement account with Vanguard. Current AA is 50%/50%
Any recommendations as to which fund? Life Style?
Lucky3
Vanguard Options for RMD
Re: Vanguard Options for RMD
I like the Target Retirement funds.
Chaz |
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“Money is better than poverty, if only for financial reasons." Woody Allen |
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Re: Vanguard Options for RMD
I've long kept a big chunk of my taxed savings in Vanguard's Balanced Index fund. (Now in Admiral shares.) Its 60/40 balance matches my AA so it makes it easier to think about how it fits in to my overall plan. Of course, it all depends on what you expect to do with the money ... and when.
- Christine_NM
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Re: Vanguard Options for RMD
LifeStrategy Moderate Growth would match the STAR fund and maybe be a little more tax efficient than the actively managed funds in STAR.
Or, just open a taxable STAR fund account if taxes are not an issue.
Or, just open a taxable STAR fund account if taxes are not an issue.
16% cash 49% stock 35% bond. Retired, w/d rate 2.5%
Re: Vanguard Options for RMD
If this is the year you reach 70.5, you do NOT need to take your RMD this year. You can defer all of the RMD, part of the RMD or none of the RMD to 4/1/2015. In most cases, you are better off to take your 2014 RMD this year, but due to how your SS is taxed, sometimes you will reduce taxes over the two year period by deferring some part of your RMD to 2015.lucky3 wrote:Need to take RMD for the first time this year from Star Fund...will reinvest it in a non-retirement account with Vanguard. Current AA is 50%/50%
Any recommendations as to which fund? Life Style?
Lucky3
(If 85% of your SS would be taxable in both years, if you do NOT take your 2014 RMD this year you might substantially reduce your 2014 taxes, while the deferred RMD to next year cannot increase the 85% of taxable SS you will face just from your 2015 RMD). Check the numbers using a tax program, typically in December of this year to determine the optimum 2014 RMD to take.)