Good Morning Gentle Readers,
Once you've retired and reach age 70 you must begin to draw on your retirement funds. Worse, there is an IRS imposed minimum annual withdrawal requirement. If you miss it, the penalty is huge. Like 50% of the diff between what you took and what you were supposed to take.
The minimum withdrawal is based on a relatively complicated formula that takes into account the size of your nest egg and your life expectancy.
This used to be a pain to figure out and neither your broker nor your tax guy were especially helpful.
Tax Guy: Well, no, you really need to talk to your broker about that
Investment Guy: We can't figure that for you, you need to talk to your tax guy
Well, thanks to the miracle of the Information Age and thanks to Kiplinger you can easily calculate this yourself in about thirty seconds. That is assuming you can remember* how old you are and you can find the statement showing the balance left in your 401(k), IRA, or SEP that is.
*Sometimers Disease (noun); An occasional and often reversible failure of a memory module that is typically brought on by fatigue, the need to defrag, or plain old fashioned forgetfulness associated with, uh, well, ummm, hold on, it'll come to me. Hold on, uh [snaps fingers twice].....
Use in a sentence:
I cannot be losing my mind yet, I actually do know the name of the street.....must be Sometimers.