Avoid Costly Mistakes: Essential RMD Tips for Retirees
Many retirees are only taking their required minimum distributions (RMDs) from retirement accounts out of fear of outliving their assets, which can lead to significant lost income. This cautious approach, part of the 'retirement consumption paradox,' often results in large account balances and unnecessary withdrawals later in life. Retirees are encouraged to explore alternative strategies like qualified charitable distributions or rolling funds into a Roth account to optimize their income.