What do you do with RMDs you don’t actually need?

If you’re retired and over age 73 — or 75 if you were born in 1960 or later — you know the IRS requires you to start taking Required Minimum Distributions (RMDs) from your traditional IRAs and workplace retirement accounts.

Even if you don’t need that money for living expenses, you still have to take it - which means more taxable income, higher Medicare premiums, and a bigger chunk of your Social Security benefits becoming taxable in some cases.

Today I share "6 Strategic Ways to Make the Most of Distributions You Don’t Need", an article by Greg Hammons from TheStreet.com.

1. Reinvest in a Taxable Brokerage Account - super straightforward.
2. Make a Qualified Charitable Distribution (QCD)
3. Use RMDs to Fund Life Insurance
4. Cover the Taxes on a Roth Conversion
5. Fund a 529 Plan for Education
6. Give to Family—Tax-Free

So what’s the best move for you?

That depends on your goals—whether it’s growing your money, reducing taxes, helping your family, or supporting a cause. But the key message is this: RMDs don’t have to be a tax burden. With some intentional planning, they can be an opportunity.

Before making a move, talk to your financial planner or tax pro. These strategies can have long-term effects on your retirement plan, your taxes, and your legacy.

I also tackle a listener question: "What is your recommendation to cover the gap in sustainable income from pre-retirement (e.g., 60) to Social Security claiming age (e.g., 70)?"

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What happens when your emergency cash runs dry—and life keeps happening?

A recent article lays out a ranked list of ten ways to access emergency cash, starting with the best options and ending with the ones you’ll want to avoid unless it’s truly a last resort:

1. Emergency Fund / Short-Term Securities
2. Low-Risk Assets in Taxable Accounts
3. Roth IRA Contributions
4. Life Insurance Cash Values
5. 401(k) Loan
6. Home Equity Line of Credit (HELOC)
7. Hardship Withdrawals from 401(k)
8. Reverse Mortgage
9. Margin Loans
10. Credit Cards

The takeaway?

Know your emergency funding hierarchy before a crisis hits. With a plan in place, you’ll be better equipped to make calm, informed decisions when life throws you a curveball.

Resource:

• MorningStar article by Christine Benz: 10 Sources of Emergency Cash, Ranked From Best to Worst
• Christine Benz’s book - How to Retire: 20 Lessons for a Happy, Successful, and Wealthy Retirement https://a.co/d/3rZ3JgF

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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

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“By the time your child turns 18, you’ve spent 95% of the time you’ll ever spend with them in your lifetime.”

This comes from research by the American Time Use Survey, highlighted by Our World in Data. And let’s be honest, when you first hear that, it stings a little. Especially as a parent. You can’t help but wonder, “Have I been a good steward of that precious time?”

But here’s the twist: this isn’t about guilt. It’s about awareness. It’s a gentle, data-backed nudge to savor the moments that feel small now—but that become the biggest memories later.

So how do we maximize the return on the time—and the money—we spend on experiences? Research tells us something powerful: experiences give us more lasting happiness than stuff. That’s not just my opinion, that’s from a 2020 study by Kumar, Killingsworth, and Gilovich. Experiences beat material goods both in prospect and in retrospect. In other words, we enjoy them more before and after they happen.

Step 1: Listen & Learn
Step 2: Create Curiosity
Step 3: Build Together
Step 4: Build Up—and Look Back

What does this have to do with retirement? EVERYTHING!

Listen in to understand why.

I also answer a question from Wendell, a retiree who’s considering swapping out some of his stock-heavy portfolio for the safety of short-term government bonds — a strategy known as “T-Bills and Chill.” He’s wondering: with guaranteed income already in place, is it time to say goodbye to the stock market for good?

Resource:

Forbes article by Tim Maurer: A Method For Maximizing Memories With Money

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Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement

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