This is probably a rudimentary question... but I'm handling my mom's finances as POA. She turned 73 this year so she will be taking her first RMD. She has about $750k in her IRA - most of it is invested in an assortment of funds, but she has about $25,000 in cash in there, which is actually in SPRXX so it earns about 5% for now. She has a good amount of cash outside of this account, also invested in SPRXX.
When I do the RMD, I guess it will just come from this $25k in SPRXX - but it got me thinking about what happens next year - should she actually be selling or rebalancing some of her random investments while the market seems to be doing ok in order to replenish this "cash" instead of depleting it all in the first year? Or do you just take the risk that the market tanks a bit between now and then and she may be required to sell things off after a dip?
When I do the RMD, I guess it will just come from this $25k in SPRXX - but it got me thinking about what happens next year - should she actually be selling or rebalancing some of her random investments while the market seems to be doing ok in order to replenish this "cash" instead of depleting it all in the first year? Or do you just take the risk that the market tanks a bit between now and then and she may be required to sell things off after a dip?
Statistics: Posted by MNPS — Fri Jul 05, 2024 3:59 pm — Replies 1 — Views 245