I’m some years away from having to take required minimum distributions from my IRA’s. Until then, they’re collecting non-compound interest, tax-free.
I was curious how the popular 4% rule for withdrawing money in retirement compares to the RMD amount. Pretending I’m already 72, the SEC’s calculator came up with a number that is very close to 4%.
An issue with RMD is it’s based on the previous year’s account balances. That’s going to be a problem for a lot of retirees, between inflation and the stock market decline triggered by the Fed’s interest rate hikes, intended to slow inflation. So far without success.