Ask Encore: Answering a reader’s question on navigating rules for required minimum distributions
By: Glenn Ruffenach, Published April 1, 2021
Saving for retirement can be daunting for many, especially since most Americans struggle to navigate the uncertainty of being on track. In fact, 50% of all U.S. households are at risk of not having enough savings to maintain their living standards in their retirement.
One of the biggest mistakes made when people prepare for their retirement is that they do not get a comprehensive financial checkup about 10 to 15 years before they actually retire. There are a number of financial firms and individuals that have published guides and/or equations to help people figure out how much they should have in their savings at different ages. Some develop benchmarks for savings or have a set of retirement milestones.
A wise endeavor would be to find and build a relationship with a trusted financial advisor.
Fulfilling a required minimum distribution while having multiple retirement plans can raise some questions. This article can help answer some of them.