Long Story Short Required Minimum Distributions, The Fear & Greed Index, and Private Equity
Adam and Andy explain required minimum distributions (RMDs) after fielding countless year-end questions from clients. If you've ever been confused about when RMDs start, how they're calculated, or what happens if you mess them up, this episode covers everything you need to know.
The conversation shifts to CNN's Fear & Greed Index hitting "extreme fear" after just a 5% market pullback. They explain why this type of overreaction is exactly why market timing rarely works and how retail investors might actually be getting smarter.
They wrap up with a deep dive into private equity: the dispersion between top and bottom managers, why access matters more than most people realize, and when it makes sense as a portfolio diversifier versus a home run swing.
We cover:
RMD basics: when they start, how to calculate them, and common mistakes to avoid
Why you should consider Roth conversions in the window before RMDs begin
Qualified charitable distributions as a tax-efficient RMD strategy
The Fear & Greed Index overreacting to normal market volatility
How Bitcoin's decline is drawing more questions than its rally to $100k
Private equity's growing accessibility and what that actually means
The massive performance gap between best and worst PE managers
Why private equity works better as diversification than speculation
Understanding liquidity constraints in private investments
⏱️ Timestamps:
(00:57) Andy's Thanksgiving carnitas tradition
(02:13) CNN's Fear & Greed Index hits extreme fear on a 5% dip
(08:44) RMD mechanics: age requirements and calculation methods
(14:21) The spouse age factor and special IRS tables
(16:30) Flexibility in RMD timing and withholding strategies
(20:22) Qualified charitable distributions explained
(21:26) Roth accounts and the pre-RMD conversion window
(25:57) Private equity and its role in asset allocation strategies
(28:59) The critical importance of manager selection in PE
(32:23) Private equity as diversification, not home runs
(37:35) Liquidity considerations in private investments
(39:15) Podcast disclosures
Resources:
Follow Burney Wealth Management on LinkedIn | www.linkedin.com/company/burneywealthmanagement
Follow Adam Newman on Linkedin | www.linkedin.com/in/adam-newman-cfa-cfp%C2%AE-mst-ricp%C2%AE-cepa-48853916/
Follow Andy Pratt on LinkedIn | www.linkedin.com/in/andyjpratt/
CNN Fear & Greed Index | https://www.cnn.com/markets/fear-and-greed
#RetirementPlanning #TaxPlanning #PrivateEquity #RMDs #PortfolioDiversification #WealthManagement
The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. This content is for informational and educational purposes only. It is not intended as personalized investment advice or a recommendation.