Synchrony had a 4.10 nine-month rate that I was mulling over for a while; I see the nine-month rate is currently 3.75. Now they're highlighting a 4.0 rate on a fourteen-month CD. I'm mulling. He who hesitates . . .
No, I think you've got it, but the context of the article shows that for a certain subset, RMDs might be the only withdrawal strategy needed. I thought the article was clear enough that this option might not be for everybody. Actually, I expect that it would work (works) for many HD readers and commentators. Were you in our system, for example, I'm sure you'd be fine with just an RMD strategy.
I suspect my withdrawal strategy will pretty much follow the scenario you outline here. I've just taken my first RMDs at the end of 2025, so it may take a year or two to be sure, but I don't anticipate "needing" to take more than the IRS required amounts out each year. And as you note, one does not necessarily have to spend what comes out. PS: I'm curious why you don't use FZDXX (3.52) instead of SPAXX (3.35), or even VMFXX (3.64). There is a higher bar to meet to establish the FZDXX position, but then you do not have to maintain that level of funding in the account.
But one has to take the RMDs, no matter what one's spending plan is, and as Richard makes clear, spending adjustments in his case are beside the point.
Clearly you are anything but at the "mercy" of higher tax brackets and IRMAA! Well done. What you seem to be missing is your own permission to up your discretionary spending to fit the funds you've created for yourselves. Enjoy a few splurges along with your gift giving.
Comments
It seems that what's really under discussion here is not the "other half," but more like the other fifteen, ten, or five percent.
Post: How the Other Half Live: The Reality Check
Link to comment from January 14, 2026
I see. Well, I'd not advise that in an overly broad way, so on second thought, I agree with Mark's cautions.
Post: RMDs, account withdrawals, 4% simplified- MAYBE?
Link to comment from January 13, 2026
Synchrony had a 4.10 nine-month rate that I was mulling over for a while; I see the nine-month rate is currently 3.75. Now they're highlighting a 4.0 rate on a fourteen-month CD. I'm mulling. He who hesitates . . .
Post: Should I Lock in CD Rates Now or Stay in Money Market?
Link to comment from January 13, 2026
You only have to look within your account, so that makes it an easy fix. If you're linked with a Vanguard account, that option, too, is super easy.
Post: RMDs, account withdrawals, 4% simplified- MAYBE?
Link to comment from January 13, 2026
Well, I'm in FL, so that's not on my radar.
Post: RMDs, account withdrawals, 4% simplified- MAYBE?
Link to comment from January 13, 2026
No, I think you've got it, but the context of the article shows that for a certain subset, RMDs might be the only withdrawal strategy needed. I thought the article was clear enough that this option might not be for everybody. Actually, I expect that it would work (works) for many HD readers and commentators. Were you in our system, for example, I'm sure you'd be fine with just an RMD strategy.
Post: RMDs, account withdrawals, 4% simplified- MAYBE?
Link to comment from January 13, 2026
I suspect my withdrawal strategy will pretty much follow the scenario you outline here. I've just taken my first RMDs at the end of 2025, so it may take a year or two to be sure, but I don't anticipate "needing" to take more than the IRS required amounts out each year. And as you note, one does not necessarily have to spend what comes out. PS: I'm curious why you don't use FZDXX (3.52) instead of SPAXX (3.35), or even VMFXX (3.64). There is a higher bar to meet to establish the FZDXX position, but then you do not have to maintain that level of funding in the account.
Post: RMDs, account withdrawals, 4% simplified- MAYBE?
Link to comment from January 13, 2026
But one has to take the RMDs, no matter what one's spending plan is, and as Richard makes clear, spending adjustments in his case are beside the point.
Post: RMDs, account withdrawals, 4% simplified- MAYBE?
Link to comment from January 13, 2026
Clearly you are anything but at the "mercy" of higher tax brackets and IRMAA! Well done. What you seem to be missing is your own permission to up your discretionary spending to fit the funds you've created for yourselves. Enjoy a few splurges along with your gift giving.
Post: Tell me my error in thinking
Link to comment from January 8, 2026
Appreciate the link. I'm sure I saw it the first time around, but great to revisit it.
Post: The Grass Is Definitely Greener.
Link to comment from January 8, 2026