When's the right time to take RMDs? Retirees have to start taking RMDs the year after they reach age 70½, but they have some latitude on when exactly in a given year they take those withdrawals, according to this article on Morningstar.com. They can do so early in the year, late in the year or in installments throughout the year. Each approach has advantages to consider. Delaying until the end of the year will enable clients to enjoy more time of tax-deferred compounded growth on the investments. Taking the distribution early in the year, however, ensures they don't forget and risk a 50% penalty; this also removes the possibility that heirs would be left with a tight window to take RMDs if the client dies in a given year. Taking the withdrawals semiannually, quarterly or monthly helps ensure they receive a range of prices for the assets begin sold. Similar to the way that dollar-cost averaging helps ensure that buying decisions are not made at precisely the right or wrong times, taking RMDs in installments guarantees clients will never sell at precisely the right or wrong time. This retains some, but not all, of the benefits of taking year-end distribution.

4 investing errors that can crush clients’ retirement savings Retirement savers are not maximizing the return potential of their portfolio if they do not invest in stocks, according to this article on personal finance website Motley Fool. Allocating all their assets in stocks is also a misstep that could be very risky, as they would be severely hit when the market dwindles. Clients also make a big mistake if they do not make the most of the tax-advantaged retirement plans, such as 401(k) and IRA, or they do not factor in the tax treatment of their investments.

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