Question

"A client, age 74 has $314,000 in her Traditional IRA. She is required to take an $11,000 RMD for this year. She does not need the cash and wants to maintain her investment portfolio. She asks her representative if she can take the RMD in shares into her cash account at the firm This action will result in a:

Answer 1

This action will result in her safe-guiding her investment portfolio in equities. For example, in a constant dollar plan, an investor keeps a constant dollar amount of the portfolio in equity securities. If the equities' market value rises, the excess is transferred to fixed-income securities.

Step-by-step explanation: