That is an excellent point. The RMDs will be based on the market value of the bonds, while the coupons are based on the face value, and changes in interest rates cause those values to diverge, especially considering you are likely planning for 15-20 years or more of RMDs.+1
Unless you are only investing in bonds, I don't see how you can possibly estimate your RMDs with any sort of accuracy.
Even if all tax deferred is bonds, it is unlikely to work out.
If we get a major decline in real interest rates, the value of the long ladder, upon which the RMD amount is based, will jump substantially. The value of the maturing rung won't move due to rate movement as its duration approaches zero and so will not match up with the RMD amount.
Statistics: Posted by toddthebod — Mon Dec 09, 2024 10:42 am — Replies 6 — Views 261