Lon wrote:
> Though these new funds by "Vanguard" & "Fidelity" have the element of
> risk as do all investments,
> they could work much better for many than annuities. As a retiree for
> the past 17 years and now required to take Mandatory Distribution of
> my IRA, I will be transferring into one of these funds.
It sounds like you are mixing issues. Those funds may or may not
distribute enough to meet your RMD figure in year 1, but most certainly
won't a few years down the road. Do you need the funds from your RMD? If
not, you can just transfer the shares from your IRA to your cash account
to satisfy the RMD, you don't need to change your asset allocation in
anticipation of RMDs.
Sorry, those funds you referenced sound too gimmicky for my liking.
Comparing to annuities is apples to oranges, completely different
investment.
Joe
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