RMDs Can Improve Your Portfolio

Christine Benz at Morningstar has published an update to the article. I think this is one of the better summaries on the internet.

It provides the steps and options available when determining an RMD. She lists the “key steps to take to improve your portfolio at the same time you’re meeting your obligations with the IRS.” She also discusses penalties for non-compliance and approaches to pruning and asset re-allocation.

Using Morningstar Style Box and sector exposure is suggested as a tool, but for those with a variety of index funds this might not be essential.

There is a section about what to do with the proceeds from that RMD, as well as the benefits of QCD charitable contributions.

https://www.morningstar.com/personal-finance/yes-rmds-can-improve-your-portfolio