Podcast Episode 340: Strategic Planning for Required Minimum Distributions
When it comes to retirement, understanding Required Minimum Distributions (RMDs) and staying ahead of them is important for financial success in retirement. In our latest podcast, Matt Pastor, RICP explains the intricacies of RMDs and sheds light on why early planning is essential.
RMDs are amounts the IRS requires retirees to withdraw annually from their retirement accounts starting at a certain age—recently updated to 73. Without strategic planning, these withdrawals can significantly impact your tax situation. Most people tend to not think about RMDs until the end of the year when they have to take money out, but we wanted to start having the conversation now to start the year. By being proactive rather than waiting, you’ll be able to manage these distributions more effectively.
One key takeaway from the podcast is the array of options available for utilizing RMDs. There are four common strategies for using the money after you withdraw it: covering living expenses, paying off liabilities, boosting cash reserves, and reinvesting after-tax amounts. Each option provides a pathway to optimize retirement funds in alignment with individual financial goals and needs.
Furthermore, we’ll explain that even if RMDs seem distant, planning conversations should begin well in advance. For those in their 60s, strategies like Roth conversions and Qualified Charitable Distributions can set the stage for a more favorable tax scenario once RMDs kick in. Proactive measures can help mitigate the risk of being thrust into a higher tax bracket later in retirement.
The podcast ultimately serves as a reminder that RMD planning is not just about fulfilling IRS requirements; it’s about tax efficiency and making informed decisions to preserve your nest egg. By engaging in early and strategic planning, retirees can navigate RMDs with confidence, ensuring a financially sound retirement journey.
Here’s some of what we discuss in this episode:
• How RMDs have changed in the last couple of years.
• What should you be thinking about if you’re turning 73 this year?
• The four primary options for how to use your RMD withdrawals.
• If you’re still a decade out, there are some tax planning conversations you should be having.
Information presented in our podcasts is considered current as of the created date. Over time, some information presented may become stale. We recommend you consult with your Financial Professional before making any changes based on information contained here.
Johnson Brunetti is a marketing name for the businesses of JB Capital and JN Financial.
Investment Advisory Services offered through JB Capital, LLC. Insurance Products offered through JN Financial, LLC.
The guarantees provided by any type of insurance contract are based on the claims-paying ability of the insurance company.
Related Resources
-
3 Avoidable Retirement Surprises
Even the most carefully crafted retirement plans can go off track if you haven’t accounted for some of the biggest surprises along the way. While many factors can impact your retirement, the good … -
Social Security Myths Debunked
With so many rules and choices involved, it’s easy to feel overwhelmed or intimidated by Social Security. As a key source of retirement income, this decision deserves careful consideration, which … -
Podcast Episode 413: Will Social Security Run Out?
Prefer to watch? Click here to watch and listen on YouTube. Social Security has been making headlines lately, and for good reasons. According to current estimates, the Social Security Trust Fun… -
How Does the Big Beautiful Bill Affect Me?
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law, bringing significant changes to the U.S. tax code. But what does it mean for you? What actions should you consider? And… -
Preparing for RMDs
Regardless of where you are in your retirement planning journey, required minimum distributions (RMDs) are a key factor to keep in mind. Gaining clarity on RMDs now can help you make more informed… -
Tariffs and Your Retirement
With growing concerns about rising tariffs and ongoing trade disputes, you may be wondering how these policy shifts could impact your retirement. While the situation around tariffs has stabilized … -
Staying Ahead of the Tax Curve
Retirement doesn’t mean you stop paying taxes – but there are ways to minimize the bite in the long run. With thoughtful, proactive tax planning, you can stay ahead of the curve and keep more of w… -
Can I Still Retire Comfortably If I’m Behind on Saving?
You’ve worked hard to reach retirement, and you deserve to enjoy it comfortably. But what if you discover you’re behind on your savings goal? In this week’s Money Wisdom Question Series, Nichol… -
Podcast Episode 412: Medicare Explained in 10 Minutes
Prefer to watch? Click here to watch and listen on YouTube. Reaching Medicare eligibility is an important milestone, but understanding the different parts, when to enroll, and what is and isn’t… -
Podcast Episode 411: What Happens to My Money After I Die?
Prefer to watch? Click here to watch and listen on YouTube. No one wants to think about life after they’re gone, but ignoring what happens to your money can leave your loved ones confused and v…