My Wealth Builder

Did Pam Bondi Call the Stock Market Top?

2026-03-07T20:00:00.001-05:00

During an intense grilling before Congress about the Epstein files on February 11, 2026, Pam Bondi responded with a non sequitur deflection, "The DOW is over 50,000 right now..." touting the economic achievements of the Trump administration with the all time high of the DOW. The DOW immediately fell the next day to below 50,000.

The DOW has stayed below 50,000 since then and fallen since to a 47,501 close on Friday, March 6, 2026.

This begs the question, "Did Pam Bondi call the stock market top?"😢 We shall see.🤡

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial nor investing advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Roomba is my Preferred Type of Robot

2026-03-07T14:00:00.001-05:00

It seems humanoid robots are the desirable execution for many people. Not me. I prefer robots like our Roomba.

Living with a humanoid robot seems creepy to me. I expect it will be given a personality and other human characteristics. It will be a creature that I don't want to establish a relationship with. On the other hand, it will act as if it is a friend or family to serve me. I'm sure it will observe and make a record of my requests and actions. I'm sure it will remember personal and confidential information. And I won't know who else is accessing that data and information. This is one reason I won't buy new cars that have extensive software or subscription services. I'm sure every bit of data is being used by the manufacturer or provider.

The Roomba has no personality or human characteristics. It doesn't interact with me. Roomba just does it job when I press a button since I don't schedule it to clean. And it's easy to maintain. I order a new battery every 2 years and replace some parts periodically. No relationship expected.

Similarly, our dishwasher and washing machine are able to modify how they clean by detecting levels of "dirt." Otherwise, it just does it's job and doesn't require personal interaction from me other than adding detergent, choosing a cycle and pressing a button.

It will be interesting to see where the robot design ends up in a few years.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial nor robot advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

I Was Lucky, Not Brilliant

2026-03-06T08:00:00.052-05:00

Well, most of my buy the dip stocks have advanced in the past couple weeks, with a couple returning about 25% so far. At first, the stocks either went down further or bounce up and down significantly. I was concerned that they would drop much further. However, it now appears that I was just early since it looks like most have bottomed a couple weeks after I purchased them. I clearly was lucky, especially since war with Iran happened, which typically causes stocks to fall.

During that time, I went through several bouts of excitement, dismay, and anxiety since there was significant volatility in February 2026 followed by the war with Iran. Was I brilliant? No way. I consider myself extremely lucky right now. I happen to pick the right stocks at the right time, which is very difficult to do.

I will continue to hold the buy the dip stocks, hoping that all will become positive. I may scale out of some positions and take profits if they continue to advance. Otherwise, I may hold for a few months and then sell.

Overall, this has been a good experience so far. However, I do not plan to buy the dip on this scale again. Too much stress and anxiety for me when depending on luck.

Disclosure: The stocks I bought on the dip were: MSFT, TSLA, NOW, CRM, TEAM, ADBE, ACN, NFLX, UNH, and PYPL. The ETFs I bought on the dip were: VOO, RSP, MGK, and SCHD.

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial, investing, nor stock picking advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Routine is Good for Me

2026-03-05T08:00:00.091-05:00

Routine is present for kids. Routine is present when in school. Routine is present when working. There usually is no routine in retirement. However, routine is good, even in retirement.

The last few years, I have had no scheduled commitments, with the exception of a small social men's tennis league that I manage which plays once a week. Other than that, I spend some time on the various projects I work on, but there is no sense of urgency.

Lately, I've been doing Cardiac Rehab, which is schedule Monday, Wednesday, and Friday for the next 12 weeks. I decided to the 8AM session. This has created routine for me. I prepare my exercise bag the night before. I also prepare a small post exercise meal, since I am vegetarian and need to eat every 2 hours. In the morning, I make breakfast for my son before school, and then leave for rehab. Afterwards, I run my errands to grocery, hardware or other stores. Then I come home and work on the projects, which includes managing our financial investments.

Previously, I would spend most of the day in the house, working on different house projects, checking on investments, but without any well defined endpoints. With the new routine, I feel I need to meet deadlines, or else fall way behind.

The good news is that routine is keeping me energized to complete project and advance our financial situation. I used to think having lots of free time would be great. Now I feel having a schedule with endpoints is much better. Who knew having a routine and schedule would help create better sense of purpose in retirement.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, planning nor aging advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Simple Template for Wealth Building

2026-03-04T08:00:00.019-05:00

I read this on LinkedIn and am passing it on.

Overall, I think this a great framework. My only input is that I would allocate debt repayment (e.g. student loans) to the 50% needs allocation.

Of course, YMMV.

Credit: Tiras Wealth Managment

Disclosure: I was not compensated by Tiras Wealth Management for writing this post.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Removing Friction is a Great Business Strategy

2026-03-03T08:00:00.079-05:00

I used think product and pricing were the most important elements for business success. While I still think product and pricing are important, I now believe making the consumer experience as easy as possible is the most important factor.

Here's one example for the DIYer. In the past, to fix something, I would take the part to Lowe's or Home Depot, walk around the store, talk to an associate, compare the part to what I have, buy it and bring it home. It would take me 20 minutes to drive and park, 30-60 minutes in the store, and 30 minutes to return home. Now I can look 15 minutes online for the part, order it and get it delivered for free in 1-2 days, try the part and only drive back 20 minutes if I got the wrong part. The process now take 60 to 90 minutes less time. Home Depot has a 1 year return policy for those that use the Home Depot credit card and Lowe's has a 5% automatic discount for card holders and a 90 day return policy. Easy peasy.

Here's another example for the Costco shopper. Costco now has a 30 day price match guarantee. If I buy it and the price goes down within 30 days, I am refunded the difference. Costco also has a forever satisfaction guarantee return policy on most items, except electronics and computers, which are 90 days. Rather than deal with manufacturer warrantees, I let Costco handle by returning items that stop working in the first couple years.

In both examples, the stores are within few miles of my house and I pass by them when doing other errands. Thus, no additional travel effort on my part to return items.

Disclosure: I was not compensated by Costco, Lowe's nor Home Depot for writing this post.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial nor shopping advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Outcome Bias -YMMV

2026-03-02T08:00:00.006-05:00

Our brains look for patterns especially patterns that appear to result in success.

We assume that successful outcomes result from taking certain actions or making certain choices based on those who have been successful. For example, to be a very successful investor, do what Warren Buffet would do would be recommendation based on his success results. Naturally, people believe that doing what successful people have done will lead to success.

The main fallacy with this logic is that it rarely includes those people that took similar actions and make similar decisions and did not succeed. What if 99 other people were Warren Buffet like but did not get the same great results or even lost money. That would imply there is only a 1% chance of success using the Warren Buffet methodology, which is not a high probability. Another fallacy is that we don't know every one of Warren Buffet's actions or choices on what to do or not do. One of those missing pieces of information may have been the key to success. Finally, we don't know how much luck, or factors not in Warren Buffet's control, contributed to his success.

All of these factors suggest that doing what one thinks other successful people have done does not guarantee one will also be successful. YMMV when using strategies and plans that were previously led to successful outcomes.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Falling More than Ever When Snow Skiing

2026-03-01T08:00:00.036-05:00

Since having open heart surgery in 2024 and missing the 24/25 skiing season, I have seen a decline in my snow skiing capability. This year, I have skied less than normal and have fallen as many times this season than cumulatively over the past 10 years. Not only have I fallen on the tougher slopes, but I have fallen getting off the lifts and even fell once just standing around. One time I fell twice during same ski run on a relative short but steep double black slope.

I realize now that I'm starting to experience significant declines in previous capabilities with aging and, in some cases, due to the heart surgery. I've learned time and aging doesn't wait. My solution is to get out more early and often to do the things I enjoy, before the inevitable decline prevent the ability to do so.

Oh well... it's off to skiing next week before spring weather comes and before another birthday happens.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial, aging nor health advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Levels of Wealth for Retirement-Age American

2026-02-28T08:00:00.006-05:00

I saw this infographic on LinkedIn and though it was worth reposting in my blog.

Credit: David Vernich on LinkedIn

https://www.linkedin.com/in/davidvernich/

Disclosure: I did not receive compensation for reposting this graphic.

For more on Reflections and Musings, check back every Saturday for a new segment.

This is not financial, wealth nor retirement advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

More Volatility with Buy the Dip Stocks

2026-02-27T20:00:00.004-05:00

Yesterday I was elated and today not so much as downside volatility creates some emotional stress. It's been a bit of a roller coaster for the buy the dip stocks. Yesterday, I thought the dip was over. Today, I'm not so sure.

They were down at the open, recovered a bit buy noon, the down again until 3PM, and then advancing until 3:30 before final dip and V advance at to close at the high of the day. Whew, that was too much excitement and anxiety for me. My buy the dip stocks followed the same trend as a group, but did not close at the high of the day. Unfortunately, several but the dip stocks were down 1-2% due to the wholesale producer prices edging up higher than expected.

I made two purchases today, both index ETFs, RSP and VXUS. Those index ETFs were both relatively stable today, which is the low volatility I am trying to achieve in the future.

In the meantime, I plan to ride out the volatility on the buy the dip stocks that I have and deciding whether to sell or hold as they become profitable.

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial, stock picking, nor investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Managing Income for Tax Benefits in Retirement

2026-02-27T08:00:00.029-05:00

I've learned that income planning is even more important in retirement than when working. The simple reason is that taxable income may be controllable by the retiree to maximize tax benefits and minimize tax liability. When working, most of taxable income usually comes from a regular paycheck which limits the options for minimizing tax liability.

During my working years, I only had a few options to manage income. Specifically, whether to make tax deferred contributions to retirement accounts and whether to take capital gains from stocks in taxable accounts.

Now that I'm retired, I no longer have working income. Instead, I have Social Security, Dividends and Interest, and Capital Gains. Social Security is tax free below a certain income and up to 85% can be taxed above a certain income. Dividends and Capital Gains can be tax free depending on adjusted grosss income (AGI). Several tax credits are phased out above AGI thresholds. Federal tax free interests is now more important keep below AGI thresholds. Also, premiums for Medicare are dependent on one's income. Higher incomes may incur higher premiums.

I didn't expect managing tax benefits would increase in importance in retirement.

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial, tax nor retirement advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Emotional Thrill and Anxiety of Buying Beat Up Stocks

2026-02-26T20:00:00.015-05:00

I used to enjoy buying beat up stocks and waiting for them to be profitable. Not that I was very good at it. But I was good enough to not lose money too often. And when I did, it wasn't very much. It was worth the excitement and adrenalin rush when I was younger.

Back then, I had the cushion of a job that covered my living expenses. If I made a poor choice and the position lost money, it didn't affect my lifestyle which was supported by my paycheck. Now that I'm retired, I depend on my investments to cover living expenses now and in the future. Thus, short term losses from poor stock buys create more negative emotions, such as worry, anxiety, and regret, more than when I was younger.

Right now, the stocks portfolio I bought on the dip is up slightly. I'm feeling good. However, it took a month worry, anxiety and regret before it changed to excitement. Not worth it to me to emotionally go down before potentially going up in the end.

At this point, I plan to retire from large scale buying the dip in the future. I may buy the dip for the company from which I retired, or a couple other select stocks, but no more that 5 or maybe 10. That way I can avoid the emotional downside I felt this time, even though it appears that it has worked out for now.

If I do make a major buy the dip purchase in the future, I will be buying index mutual funds or index ETFs for the S&P 500 or the total market.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, stock picking, nor investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Learn to Cook

2026-02-26T08:00:00.003-05:00

When I was growing up, we ate virtually all of our meals at home. My mom was a SAHM and made us breakfast (before school), lunch (I packed until high school) and dinner. Eating out, even out McDonald's, was rare and was considered a special treat.

I learned to cook while still in high school. I was on a meal plan while attending college. When I started working, I ate lunch in the company cafeteria, but mostly cooked my own meals for breakfast and dinner. Back then groceries were much cheaper than eating out. Also, I shopped the sales and used coupons.

Cooking my meals and not eating out as often enabled me to save more money in my early working years. My spouse and I still cook and eat most of meals at home. We do it mainly for health reasons nowadays and not to save money, since health groceries are expensive.

My kids have or are learning to cook. This will be a great skill to have as they get older.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, saving nor adulting advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Patience Pays Off on Buying The Dip

2026-02-25T20:00:00.020-05:00

I recently bought the dip on mainly software stocks in early February 2026. After I started buying, the stocks kept dipping, resulting in many of my purchases going negative. This was disappointing. It is now the end of February and most of the stocks are recovering, with one, HUBS, even going positive for every purchase.

It appears that patience has paid off, at this point. I thought many of these stocks were oversold (down 50-80%) on the threat of AI, which I think is being overestimated for decimating many jobs and businesses.

I will scale out of some shares and hold some shares for bigger gains, in the hope that these stocks will continue to recover instead of reversing and dipping again. My worst buy the dip stock was TEAM, which dipped over 25% from when I started buying despite already being down about 60%. ACN is the second worst.

Disclosure: The stocks I bought on the dip were: MSFT, TSLA, NOW, CRM, TEAM, ADBE, ACN, NFLX, UNH, and PYPL. The ETFs I bought on the dip were: VOO, RSP, MGK, and SCHD.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial, investing, nor stock picking advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Buying Individual Stocks on the Dip is Gambling for Me

2026-02-25T08:00:00.054-05:00

Last week, I reviewed the buying the dip stocks for how much they could add to our funds. Turns out not much. I only buy a few shares since I'm just betting on a rebound to make a few dollars. I am hesitant to hold for very long due to volatility and sell for quick gains of 5-15%. A few shares times a few dollars doesn't amount to much of an increase. I enjoy the fun and excitement of the gain, but it really doesn't grow our investments much.

Looking back, the big gains have come from large investments in a diversified portfolio, my company's stock, or a lucky buy and hold tech stock such as Alphabet. Not from buying multiple stocks on the dip.

Over time, I've ended up positive on my buy the dip stocks, but not by much.

Lesson learned. It's fun to buy the dip, guess right and collect the winnings. But it's not a sustainable investment strategy for me. For the long run, I would have done better investing in a total market index, holding and collecting the gains many years later. Not as much fun, but much better results.

I'm definitely putting my kids' accounts in market index funds for their future.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

New York Times Front Page Test

2026-02-24T08:00:00.008-05:00

Here's one way to judge whether to do something or not. If one wouldn't want the the activity, written document, or action to be published on the front page of the New York Times, then don't do it. If publishing it wouldn't bother one, then it's OK to do.

I like this criteria. It's easy to understand and easy to use.

For more on Ideas You Can Use, check back every Tuesday for a new segment.

This is not financial nor reputation advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Stock Picking Advisors Hate This One Simple Trick

2026-02-23T08:00:00.006-05:00

Invest in the S&P 500 or the Russell 1000 and hodl.

Found this chart on LinkedIn. Makes a good case for investing in the S&P500 or Russell 1000 Index. Unless one is good enough to consistently identify the winning individual stocks, which I am not.

Bottom Line: Start early, contribute regularly, invest in a broad market index and hodl.

For more on Strategies and Plans, check back every Monday for a new segment.

This is not financial nor investing advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

AI Plan to Access More Personal Data

2026-02-22T08:00:00.010-05:00

Open AI and Grok are now advertising that they will do AI analysis of one's health records for free. ROFLMAO. It's likely that Open AI and Grok is providing this "service" to get one's personal data for free to use for AI learning. Maybe I'm cynical, but I tend to err on the side of caution.

First, I'm not a fan of corporations having my personal data, especially if it's privacy related. Second, I'm not a fan of corporations making money of my information, without any compensation. Even if there was compensation, I would not provide my data.

Of course, there is data that I cannot avoid being used by corporations. For example, I use a loyalty card with my grocery store, for discounts and special sales. I know that Amazon tracks my purchases and likely uses or sells that information. However, I do not use social media such as Facebook, Instagram or other similar products. Hopefully, this will make my personal data less accessible.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial nor social media advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Prediction Markets

2026-02-21T08:00:00.056-05:00

Prediction markets started as a methodology to aggregate numerous opinions to assess the probability of an outcome. Prediction markets then evolved into a form of entertainment. Lately, it has become a source of winning funds based on correctly choosing future outcomes by individuals. Examples include: Who will win an election: and Will a certain action be taken.

Prediction markets have adeptly avoided being regulated by states as gambling nor the SEC as investments. Cleverly, the prediction markets are neither for now.

IMHO, prediction markets appear to be also a form of gambling. Participants are "betting" on the outcome of an event and are compensated if they choose correctly. Participants can also "bet" on the future value of an item, which makes it close to "investing" in options.

Given the easy online access and lack of regulation, it seems prediction markets can become a source of financial issues for some people. Personally, I am staying away from playing in prediction markets and just periodically follow people's opinion on different issues.

For more on Reflections and Musings, check back every Saturday for a new segment.

Towel Warmer Gift

2026-02-20T08:00:00.044-05:00

One year, my spouse gave me a towel warmer to use at the hot tub on cold days. I would put my bathrobe in it on cold days when I was using the hot tub. I tried it for one fall to winter season. It was nice to have a warm bathrobe. However, it took too much effort carry the towel warmer out on the deck and bring it back in every time I used it. I stopped using.

After a few months, my spouse commented that I should give it away. I hate giving away things that we have recently bought and not used. I decided to use the towel warmer for my showers, instead of with the use of the hot tub. It has been great. I have enjoyed getting out the shower and into a warm towel.

Using the towel warmer requires a little more advance planning for my shower. Sometime before the shower, I need to put a towel in the warmer. Then, I need to wait about 10 minutes before taking my shower, since I take quick showers that don't last enough to sufficiently warm the towel.

At this point, we're keeping the towel warmer since I use it almost every time when I shower.

For more on Reaping the Rewards, check back every Friday for a new segment.

This is not financial nor showering advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Roth Conversion or Not

2026-02-19T08:00:00.085-05:00

I've been doing a lot of thinking about how to deal my retirement accounts and future RMDs. I had considered doing Roth conversions again, which I have done in the past. For me, it seems like a no brainer to do a Roth conversion while in the 12% tax bracket. Lately, I've been considering doing Roth conversions even in the 22-24% tax bracket. However, I am leaning towards not executing a Roth conversion at the higher tax bracket.

Here's my thinking:

It doesn't change the amount of money I will ultimately get. Doing a Roth conversion now at 22% tax bracket or keeping funds in traditional IRA and withdrawing later at 22% tax bracket give me the same amount of after tax money in the future, even though no taxes on Roth and federal taxes on traditional IRA.
It may affect the taxes my heirs need to pay. Inherited IRAs need to be withdrawn within 10 years. However, the amount withdrawn may or may not put them above the 22% tax bracket and unlikely to put them over the 24% tax bracket. Both my kids are younger, not even graduated from college yet. I expect the inherited traditional IRA withdrawals keep them in the 22% bracket and may put them barely into the 24% tax bracket if they are single. It is highly unlikely to put them above the 24% tax bracket even if they are single. Net it likely be a wash whether I pay the taxes now or the heir pay them later.
Doing a Roth conversion mainly will give my heirs flexibility not to manage how much is withdrawn each year, since no taxes are paid. With an inherited traditional IRA, they will need to do more advanced tax planning.

Based on my current situation, I believe my traditional IRA amount is low enough not to create a tax bomb for my heirs. Therefore, I will only do further Roth conversions if I'm in the 12% tax bracket.

For more on Crossing Generations, check back every Thursday for a new segment.

This is not financial, Roth conversion nor tax advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Muni Bond Funds Pay Based on Accrual, Not 100% on Ex Date

2026-02-18T08:00:00.081-05:00

I've been buying municipal bonds funds for the federal tax exempt interest payments. On January 25-28, 2025, I bought some T Rowe Price municipal bond funds, PRIHX, PRFHX and PRTAX. Since this was before the ex-dividend date of January 31, I expected to get the full month's interest payment. That's what happens with stocks purchased before the ex-dividend date.

When I checked on Friday, January 30, 2026, the date of the ex-dividend, I only received 1/10 or less of the expected dividend. I called the brokerages, and they gave a couple of explanations/recommendations. First, wait until until Monday. Sometimes, it takes an overnight adjustment to correct the issue. Second, one brokerage said several people had the issue and it was being corrected. I also called T Rowe Price. They said that the dividend had not been posted on their website yet and therefore, I should wait.

On Monday, February 2, 2025, there was no change and I call Schwab back for more assistance. The agent put me on hold and consulted with the mutual fund specialists. After a few minute, he explained that the bond mutual funds paid dividends on a accrual basis, i.e. a prorated amount based on how long I owned it. Hmm... I didn't know that. I called T Rowe Price and confirmed.

After further investigation, I learned many bond funds use the accrual method to pay monthly dividends.

Disclosure: I was not compensated by T Rowe Price nor Schwab for writing this post.

For more on The Practice of Personal Finance, check back every Wednesday for a new segment.

This is not financial nor mutual fund investing advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Recession Indicator - 10-year vs 3-month Spread

2026-02-17T08:00:00.008-05:00

The 10-year vs 3-month treasury spread just turned positive, which may indicate an upcoming recession according to this Motley Fool article.

This signal triggered before the last 4 recessions. It just happened again.

Here's the graph from article:

For the past four recessions, the 10-year/3-month yield spread turned positive just before a recession officially started.

That spread just recently flipped from negative to positive again, which historically has meant a recession occurring within the next year.

Forbes Article on Private Equity

2026-02-16T08:00:00.000-05:00

By the time alternative investment options used by institutions and high net worth individuals are made available to main street investors like myself, I suspect that the opportunities are not as good or more risky.

Below is a Forbes article on why Private Equity may not be a great opportunity now and reflects the concern I have.

Private Equity is Suddenly Awash with Zombie Firms

Yeah, I plan to still stay away from Private Equity and Private Credit.

For more on Strategy and Plans, check back every Monday for a new segment.

This is not financial nor investment advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC

Reframe RMDs as Our Pension

2026-02-15T08:00:00.002-05:00

I've been reading about concerns with managing RMDs (Required Minimum Distributions) in the future. RMDs are requirements by the IRS to withdraw a certain amount from IRAs, 401Ks and similar retirement accounts. The main concern is the significant increase in taxable income versus if the retiree was not required to withdrawal the funds.

I understand the tax implications. However, I decide to reframe the RMDs as a pension payment instead of an involuntary withdrawal. If I think of an RMD as another pension payment, I don't worry about the payment causing an increase in taxes. It's just a fact of life. More income equals more taxes.

This is especially true for IRA/401Ks that are less than $1 million since the RMD is about $38,000 per million at 73. Most people probably will have less than $1 million in their IRA/401K. If I had over $2 million in an IRA/401K, I'd start worrying and considering whether Roth conversions or other strategies to reduce taxes should be used.

This reframing ignore the impact of inherited IRA/401Ks on the beneficiaries, but that is a topic for another post.

For more on New Beginnings, check back every Sunday for a new segment.

This is not financial, RMD, nor retirement advice. Please consult a professional advisor.

Copyright © 2026 Achievement Catalyst, LLC