After the age of 70 1/2, required minimum distributions (RMDs) kick in for certain retirement accounts. Some people choose to use their RMDs to cover living costs and necessities, while others use the extra funds for investments.
In a blog post for Sedona Red Rock News, Financial Planner Bill Kelso laid out numerous ideas to make the most of RMD funds, such as boosting inherited assets with stepped-up cost basis, allocating RMDs toward life insurance, or donating to a charitable cause. He notes that a financial planner can help illuminate options that make sense for your individual circumstances and priorities.