I'm nowhere close RMD age but like to look ahead.
If I have a retirement account of one million dollars earning 3% interest and my RMD is $30k a year does that mean the interest covers my RMD? So the principal remains intact? Or do I need to draw down the principal such as drawing out the $30k in interest and $30k in principal, then it becomes less every year as the principal decreases.
If I have a retirement account of one million dollars earning 3% interest and my RMD is $30k a year does that mean the interest covers my RMD? So the principal remains intact? Or do I need to draw down the principal such as drawing out the $30k in interest and $30k in principal, then it becomes less every year as the principal decreases.