A customer who is age 75 has been taking RMDs (Required Minimum Distributions) each year from his Traditional IRA in cash. This year, he asks his representative if he can take the distribution in the form of shares of a mutual fund position in his account. He tells the representative that because it has been a bear market, the share price is depressed and rather than liquidate, he would like to take the shares into his cash account at the firm, awaiting a market rebound. You should tell him that the RMD can:

Taking his RMD in form of shares in a depressed market is a good investment decision. As the price will bound back and he will make more money.

Explanation:

When a traditional IRA holder gets to the age of 72 years he is entitled to required minimum distribution payments. This is not obtainable with other IRA plans.

RMD can be taken as cash or as shares. There is not tax difference between the two options.

Normally cash is better since it is easier to get access to and the beneficiary gets the exact dollar amount.

However when there is a depressed stock market, taking RMD in shares is a better option. Shares are bought and sold when prices appreciate.

This is a better option than selling shares at the low market price.

answer; /// the best answer to the above question is; the main economic goal that a society consider when deciding the best way to distribute its wealth is equity, this to ensure that all resources are equally distributed; ///(a) (economic equity)

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough