EKS Associates Senior Wealth Advisor Darren Zagarola, CFP®, CPA/PFS, was recently featured in NJMoneyHelp discussing a question many retirees face during a market downturn:
Should you take your Required Minimum Distribution (RMD) earlier than usual when the stock market is struggling?
In his response, Darren explained that there is no perfect answer because no one can reliably predict where the market will move next. While it may have been beneficial in hindsight to take an RMD before the market declined, investors can only make decisions based on the information available at the time.
The article reviews the basic RMD rules, including who must take distributions, how RMDs are calculated, and the deadlines that apply each year. Darren also discusses the practical considerations that often influence timing decisions, such as cash flow needs, tax planning, and the temptation to try to time the market.
Perhaps most importantly, Darren emphasizes the value of planning ahead. He notes that maintaining several years’ worth of anticipated distributions in cash or a bond ladder can help retirees avoid being forced to sell investments during periods of market volatility. This approach can provide greater flexibility and help reduce the impact of market declines on a retirement portfolio.
Read the full article on NJMoneyHelp: With the bad stock market, should I take my retirement distribution now?
If you’re struggling with this decision, reach out to Darren to learn how he guides his clients as they navigate retirement planning, investment decisions, and their desire to maintain their financial independence.
