from a 2012 paper by Sun and Webb
https://crr.bc.edu/wp-content/uploads/2 ... 19-508.pdf
they had the following
"To illustrate, a 65-year-old couple
with financial assets of $102,000 who received $2,000
of interest and dividends in the last year, would spend
$5,130: the $2,000 in interest and dividends, plus 3.13
percent (the age 65 Annual Withdrawal Percentage
under the RMD strategy) of $100,000. In contrast, a
household following the unmodified RMD rule would
spend just $3,130."
I kind of understand subtracting the interest of 2,000 for the RMD in the first part to not double count it, but it seems to me if the assets where 102,000, the unmodified rule should be based on the full yearly amount if 102k.
What am I not following. I guess I could just do an RMD amount at end of year for all and then add Interest and Dividends as they occur. Actually, currently I'm within my pension, I'm just kind of looking at different values as a MAX safety cap for discretionary spending, and the above numbers didn't add up to me, even counting on the 3.13 being from the RMD tables in 2012.
Thanks
Tucker
https://crr.bc.edu/wp-content/uploads/2 ... 19-508.pdf
they had the following
"To illustrate, a 65-year-old couple
with financial assets of $102,000 who received $2,000
of interest and dividends in the last year, would spend
$5,130: the $2,000 in interest and dividends, plus 3.13
percent (the age 65 Annual Withdrawal Percentage
under the RMD strategy) of $100,000. In contrast, a
household following the unmodified RMD rule would
spend just $3,130."
I kind of understand subtracting the interest of 2,000 for the RMD in the first part to not double count it, but it seems to me if the assets where 102,000, the unmodified rule should be based on the full yearly amount if 102k.
What am I not following. I guess I could just do an RMD amount at end of year for all and then add Interest and Dividends as they occur. Actually, currently I'm within my pension, I'm just kind of looking at different values as a MAX safety cap for discretionary spending, and the above numbers didn't add up to me, even counting on the 3.13 being from the RMD tables in 2012.
Thanks
Tucker
Statistics: Posted by ATucker — Tue Dec 31, 2024 11:56 am — Replies 0 — Views 69