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72t or gov bonds for income?

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Last Updated On
Bybeads

L1: 72t or gov bonds for income? I am 56 and need to supplement my income by using 72T or-as mentioned in messages- gov bonds. Is it possible to take regular withdrawals using gov bonds? Are the rates fixed on gov bonds? How would one FIND gov bonds? I have zero tolerance for risk and prefer to handle matters myself and avoid professional charges. HELP!!!2002-06-14 20:18, By: beads, IP: [127.0.0.1]
L2: 72t or gov bonds for income?I keep wondering who keeps telling individuals that you can use interest only from Government bonds – probably the bond salesman!If your IRA is funded with Government bonds then they would be part of the investment making up the 72(t) plan.There are no special rules for Government bonds – all 72(t) calculations would remain the same – you have a choice of 3 methods and there is no change in the basic assumptions to be used – see our calculators. 2002-06-15 05:39, By: Gfw, IP: [127.0.0.1]

L2: 72t or gov bonds for income? Thanks for the reply.. I guess I wasn’t clear. I currently have IRA funds in a Money Market and want to move funds into something that will allow me to use the 72T and preserve principal-if possible.The money is currently in 5 accounts. I figured to manipulate the funds to achieve some income via 72T. I am concerned about either preserving principle or having growth in another account to make up for the withdrawals. Did I say that right? My head is spinning with the inaccurate input I’ve received. Thanks again for any replies.2002-06-15 18:58, By: beads, IP: [127.0.0.1]

L2: 72t or gov bonds for income?Based on your comments, it appears that the amount of income generated is lower in priority than preserving assets.Preserving principal in a 72(t) plan would typically result when you choose an interest rate for payment calculation that would be less than the interest rate earned on the underlying investments.Suggest you find out what the prevailing rate is on the bonds that you are considering. Then look at the table of 72t interest rates from the left menu. Use the 2 rates to calculate the payment and project the fund balance – hopefully it will give you the results that you are looking for :~}2002-06-16 10:21, By: Gfw, IP: [127.0.0.1]

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