With the High Level of Uncertainty in the world, Should I take my RMD now?
- 23 hours ago
- 2 min read
That’s a good question—and one a lot of people might be asking right now given the market environment.
The honest answer is, I don’t know. I cannot predict what the market will do in the short term. What I do know is that historically, the US Stock Market trends upward about 70% of the time.
So the decision really comes down to how you feel (risk tolerance) and what your situation requires:
Would you feel better taking distributions now, even if the market rebounds later?
Do you need the income immediately?
Does your plan require a set level of income this year from your RMD account? What about future years- what’s the demand on the account?
One balanced approach is to take part of the distribution now and the rest later in the year to satisfy the RMD. That way, you’re not trying to perfectly time the market—you’re spreading the risk.
As for the bigger picture (understanding that I don’t have a crystal ball), here’s how I’m thinking about things:
When the Strait of Hormuz reopens—and it will, because it has to—we could see a strong market response as energy supplies stabilize. It’s not an energy problem…it’s a transportation to market problem
When policymakers resolve the current funding issues—and they will, because they have to—that should also help restore confidence. They historically resolve these issues, even if it’s with a “continuing resolution”
In the meantime, there will be other issues brought up by the media—and they will, because they have to—and, as a result, markets will likely continue reacting to the headlines with short-term volatility along the way. Information is being passed with increasing speed and decreasing discernment
At the end of the day, this isn’t about predicting the market—it’s about making the best decision for your plan and your peace of mind. Let’s make sure whatever we do aligns with both.
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