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BruceM:"The other thing I don't like about the on-line calculators is the assumption seems to be that the IRA owner is going to withdraw the RMD, go out and spend it and not have it anymore. For the vast majority, unless they designed the RMD to time household cash flow need....the RMD is not a household cash flow event, but is only a tax event. So projecting out the RMD amount is a useful tool to project your growing tax bill as you age. "

All depends how much money is in your IRA.

In my case, I only had 10 years to contribute to a 401K plan before I retired so I didn't accumulate a lot of bucks in it. Didn't touch it for 17 years after I retired early.

It only provides a portion of my annual spending needs. Add in SS and teeny pension, and that covers my basic living expenses and some fun money. There is no giant excess money flowing from it.

For many boomers, I suspect not all will likely spend what is in their RMD......and more from their non-tax deferred stock accounts. Not all boomers will stash it all in tax deferred vehicles.

We'll see....

If I had worked till 65, it would probably be double in value..... but still even with RMD, less than 4% of my net worth which I should be taking but don't come close to doing so......

t.
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