RMD from VBTLX or VTIPX

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BolderBoy
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RMD from VBTLX or VTIPX

Post by BolderBoy »

I need to pull an RMD requirement this year. I can do it from either VBTLX (VG Total Bond Market Index Fund) or VTIPX (VG Short-Term Inflation-Protected Securities Index Fund). I've held both funds for >10 years.

From which would you pull the RMD? I think VTIPX is down less than VBTLX so far this year.

I am planning to pull the RMD soon. Is there some reason I should wait until December?

(the RMD will be pulled into the money market fund in my non-retirement account)
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retired@50
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Re: RMD from VBTLX or VTIPX

Post by retired@50 »

Do you have a desired fixed income allocation between these two funds?

Are you shooting for a 50/50 mix or something else?

I'd withdraw the money in such a way as to maintain the desired mix after the RMD money has been removed. That might mean taking some from each fund. I wouldn't wait until December, unless you are trying to make some sort of prediction about the future NAV of each of these funds.

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BolderBoy
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Re: RMD from VBTLX or VTIPX

Post by BolderBoy »

Not trying to maintain any ratio between the funds. Planning to pull it all from one or the other.

At this point my best guess is that pulling from VTIPX is preferable (has suffered the least loss so far this year).

Thanks.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
delamer
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Re: RMD from VBTLX or VTIPX

Post by delamer »

Are you going to spend the RMD or reinvest it?

Because a transfer-in-kind may be an option if you aren’t going to spend the money.
One thing that humbles me deeply is to see that human genius has its limits while human stupidity does not. - Alexandre Dumas, fils
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BolderBoy
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Re: RMD from VBTLX or VTIPX

Post by BolderBoy »

Probably going to reinvest it, but into other funds (such as to rebalance).
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
BitTooAggressive
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Re: RMD from VBTLX or VTIPX

Post by BitTooAggressive »

VBTLX is what I would do because I would want to sell the higher duration risk fund right now.

If you don’t want to do that sell 50% from each being half wrong and half right.
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ruralavalon
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Re: RMD from VBTLX or VTIPX

Post by ruralavalon »

BolderBoy wrote: Thu Sep 22, 2022 1:29 pm I need to pull an RMD requirement this year. I can do it from either VBTLX (VG Total Bond Market Index Fund) or VTIPX (VG Short-Term Inflation-Protected Securities Index Fund). I've held both funds for >10 years.

From which would you pull the RMD? I think VTIPX is down less than VBTLX so far this year.

I am planning to pull the RMD soon. Is there some reason I should wait until December?

(the RMD will be pulled into the money market fund in my non-retirement account)
My rollover IRA contains all the asset classes which I invest in.

I have always taken Required Minimum Distributions (RMDs) automatically every month, proportionally from each fund in my rollover IRA (this tends to keep my asset allocation on target, without any action by me), paid automatically to my checking account.
"Everything should be as simple as it is, but not simpler." - Albert Einstein | Wiki article link: Bogleheads® investment philosophy
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