Required Minimum Distributions: Rules, Deadlines, and Strategies

As you approach retirement, the focus often shifts from accumulating wealth to preserving and distributing it. For many, a significant portion of their retirement savings resides in tax-deferred accounts like 401(k)s and traditional IRAs. While these accounts offer valuable tax benefits during your working years, the IRS eventually requires you to start withdrawing money from them. These mandatory withdrawals are known as Required Minimum Distributions, or RMDs. Understanding RMD rules, deadlines, and effective strategies is crucial for managing your retirement income, avoiding costly penalties, and optimizing your tax situation. Navigating RMDs can be complex, but with the right knowledge, you can ensure a smooth transition into your distribution phase.

Required Minimum Distributions (RMDs) Definition: Required Minimum Distributions are annual withdrawals that the IRS mandates you take from most tax-deferred retirement accounts once you reach a certain age, typically 73 as of 2026. These distributions ensure that taxes are eventually paid on the pre-tax contributions and earnings that have grown tax-deferred over decades.

Understanding the Basics of Required Minimum Distributions

Required Minimum Distributions (RMDs) are a fundamental aspect of retirement planning for many Americans. They represent the IRS's mechanism for collecting deferred taxes on retirement savings that have grown tax-free for years. Failing to take your RMDs can result in severe penalties, making a clear understanding of these rules essential for anyone with tax-deferred retirement accounts.

What Accounts Are Subject to RMDs?

Not all retirement accounts are subject to RMDs. The rules primarily apply to tax-deferred accounts where contributions were made pre-tax or grew tax-deferred. Understanding which accounts fall under this umbrella is the first step in RMD compliance.

Most employer-sponsored plans are subject to RMDs. This includes traditional 401(k)s, 403(b)s, 457(b)s, and profit-sharing plans. If you have multiple such accounts, the RMD for each must be calculated separately. However, you can often aggregate the RMDs from multiple 403(b) accounts and take the total from just one 403(b) account. This aggregation rule does not apply to 401(k)s; each 401(k) requires its own specific distribution.

Traditional IRAs and SEP IRAs are also subject to RMDs. Similar to 403(b)s, if you have multiple traditional IRA accounts, you can calculate the total RMD for all of them and withdraw the entire amount from any one or combination of your traditional IRAs. This flexibility can simplify the withdrawal process. SIMPLE IRAs are also included in the RMD requirements.

Crucially, Roth IRAs are exempt from RMDs during the original owner's lifetime. This is a significant advantage of Roth accounts, as contributions are made with after-tax dollars, meaning the IRS has already collected its share. However, beneficiaries of inherited Roth IRAs are subject to RMDs, though the rules differ slightly. This distinction makes Roth IRAs a powerful tool for estate planning.

Key RMD Age and Deadlines

The age at which RMDs begin has changed over time, most recently with the SECURE Act 2.0. Staying current with these age requirements is critical to avoid missing your first RMD.

As of 2026, the age for beginning RMDs is generally 73. This means if you turned 73 in 2026, your first RMD would be due for the 2026 tax year. The SECURE Act 2.0, enacted in late 2022, raised the RMD age from 72 to 73, effective for individuals who turn 72 after December 31, 2022, and 73 after December 31, 2032. For those who turned 72 in 2022 or earlier, their RMDs would have already begun under the previous rules.

Your first RMD deadline is April 1 of the year following the year you turn 73. For example, if you turn 73 in 2026, your first RMD must be taken by April 1, 2027. However, if you delay your first RMD until April 1 of the following year, you will have to take two RMDs in that year: your first RMD (for the year you turned 73) and your second RMD (for the current year). This could significantly increase your taxable income for that year, potentially pushing you into a higher tax bracket.

Subsequent RMDs must be taken by December 31 of each calendar year. For instance, if your first RMD was for 2026 and you delayed it until April 1, 2027, your second RMD (for the 2027 tax year) would still be due by December 31, 2027. This "double RMD" scenario is a common pitfall that individuals should plan for carefully.

Calculating Your Required Minimum Distribution

Calculating your RMD involves a straightforward formula, but the specific factors can vary. The calculation ensures that a portion of your retirement savings is distributed annually based on your life expectancy.

The basic formula for calculating your RMD is: Account Balance / Life Expectancy Factor.

Your account balance is typically the fair market value of your retirement account(s) as of December 31 of the previous year. So, for your 2026 RMD, you would use the account balance from December 31, 2025. This value is usually provided by your financial institution.

The life expectancy factor is determined by IRS tables. There are three main tables:

• Uniform Lifetime Table: This is the most commonly used table for most account owners. It assumes you have a beneficiary who is more than 10 years younger than you, or no beneficiary at all.
• Joint Life and Last Survivor Expectancy Table: Used if your sole beneficiary is your spouse and they are more than 10 years younger than you. This table generally results in a smaller RMD because it assumes a longer joint life expectancy.
• Single Life Expectancy Table: Used by beneficiaries of inherited IRAs, not by original account owners.

Let's consider an example for 2026. If you turned 73 in 2026 and your traditional IRA balance on December 31, 2025, was $500,000, you would look up the life expectancy factor for age 73 on the Uniform Lifetime Table. As of 2026, the factor for age 73 is 26.5. Your RMD would be $500,000 / 26.5 = $18,867.92. This amount must be withdrawn by December 31, 2026 (or by April 1, 2027, if it's your first RMD).

It's important to remember that these calculations are for each account. If you have multiple traditional IRAs, you calculate the RMD for each separately but can withdraw the total from any one or combination of them. For 401(k)s, each plan's RMD must be calculated and withdrawn from that specific plan.

Navigating RMD Penalties and Exceptions

Understanding the rules for Required Minimum Distributions (RMDs) is crucial, but knowing the consequences of non-compliance and the available exceptions is equally important. The IRS takes RMDs seriously, imposing substantial penalties for missed or insufficient withdrawals. However, certain situations can exempt you or delay your RMDs, providing flexibility for specific circumstances.

Penalties for Missing an RMD

The penalty for failing to take a full RMD, or for missing it entirely, can be quite severe. The IRS imposes an excise tax on the amount not withdrawn. This penalty is designed to encourage compliance and ensure the government collects its due taxes on deferred retirement savings.

Historically, the penalty for a missed RMD was a hefty 50% of the amount that should have been withdrawn. However, the SECURE Act 2.0 significantly reduced this penalty. As of 2023 and continuing into 2026, the penalty for failing to take an RMD is 25% of the amount not distributed. This is a substantial reduction, but still a significant financial hit.

Furthermore, if the RMD shortfall is corrected in a timely manner, the penalty can be reduced even further to 10%. To qualify for this reduced penalty, the missed RMD must be taken, and a corrected excise tax form (Form 5329) must be filed within a specific correction period. This period generally ends on the earliest of:

• The date the IRS sends a notice of deficiency for the excise tax.
• The date the excise tax is assessed by the IRS.
• The last day of the second tax year after the tax year in which the RMD was due.

For example, if your 2026 RMD was $20,000 and you failed to take it, the penalty would be $5,000 (25% of $20,000). If you realize your mistake and take the distribution and file the corrected form within the specified period, the penalty could be reduced to $2,000 (10% of $20,000). While the penalty reduction is welcome, it underscores the importance of proactive RMD management. Always consult with a tax professional if you find yourself in this situation.

Exceptions to the RMD Rules

While RMDs are generally mandatory, there are specific exceptions that can allow you to delay or avoid them under certain conditions. These exceptions are important for individuals who continue to work or inherit retirement accounts.

One significant exception applies to employer-sponsored plans (like 401(k)s) if you are still working for the employer sponsoring the plan. If you are still employed at age 73 (or older) and not a 5% owner of the company, you can typically delay taking RMDs from that specific employer's plan until you retire. This is known as the still-working exception. However, this exception does not apply to IRAs; you must still take RMDs from your traditional IRAs even if you are still working.

Another set of exceptions applies to inherited IRAs. The rules for beneficiaries depend on their relationship to the original account owner and the owner's date of death.

• Spousal Beneficiaries: A surviving spouse generally has the most flexibility. They can treat the inherited IRA as their own, rolling it into their own IRA and delaying RMDs until they reach their own RMD age. Alternatively, they can remain a beneficiary and take RMDs based on their own life expectancy or the deceased's life expectancy, or elect the 10-year rule.
• Non-Spousal Beneficiaries (Non-Eligible Designated Beneficiaries): For individuals who inherited an IRA from someone who died after December 31, 2019, the general rule is the 10-year rule. This means the entire inherited account must be distributed by the end of the calendar year containing the 10th anniversary of the original owner's death. There are no annual RMDs required during the 10-year period if the original owner died before their RMDs began. However, if the original owner died after their RMDs began, the beneficiary must continue to take annual RMDs based on their own life expectancy for years 1-9, and then distribute the remainder by the end of year 10. This distinction is critical and often misunderstood.
• Eligible Designated Beneficiaries: Certain beneficiaries are exempt from the 10-year rule and can stretch RMDs over their own life expectancy. These include:
• The surviving spouse of the account owner.
• A minor child of the account owner (until they reach the age of majority, then the 10-year rule applies).
• A disabled individual.
• A chronically ill individual.
• An individual who is not more than 10 years younger than the account owner.

These exceptions highlight the complexity of RMD rules, especially for inherited accounts. Seeking professional advice is highly recommended to ensure compliance and optimize outcomes for beneficiaries.

Strategic Approaches to Managing Your RMDs

Managing Required Minimum Distributions isn't just about compliance; it's also about strategic financial planning. By proactively addressing your RMDs, you can potentially reduce your tax burden, optimize your investment portfolio, and even enhance your charitable giving. Effective strategies require careful consideration of your overall financial picture and future goals.

Qualified Charitable Distributions (QCDs)

One of the most powerful strategies for managing RMDs, especially for charitably inclined individuals, is the Qualified Charitable Distribution (QCD). A QCD allows you to directly transfer funds from your IRA to an eligible charity, and this transfer counts towards your RMD for the year.

The key benefit of a QCD is that the distributed amount is excluded from your taxable income. This is particularly advantageous if you don't itemize deductions, as it provides a tax benefit that a standard charitable cash contribution wouldn't. Even if you do itemize, a QCD can be more beneficial because it reduces your Adjusted Gross Income (AGI), which can help with other tax calculations, such as Medicare premium surcharges and the taxation of Social Security benefits.

As of 2026, the maximum amount you can transfer as a QCD in a year is $105,000. This limit is indexed for inflation, so it may increase in future years. To qualify, the distribution must be made directly from your IRA to a qualified public charity (donor-advised funds and private foundations are generally not eligible). You must be age 70½ or older to make a QCD, even though the RMD age is now 73. This means you can start making QCDs before your RMDs officially begin.

Consider an example: In 2026, your RMD is $25,000. You are charitably inclined and typically donate $10,000 per year. By making a $10,000 QCD from your IRA, that $10,000 counts towards your RMD, and it is not included in your taxable income. You would then only need to take an additional $15,000 distribution to satisfy your RMD, and that $15,000 would be taxable. This effectively allows you to satisfy a portion of your RMD tax-free.

Roth Conversions and Future RMDs

Roth conversions can be a powerful long-term strategy to reduce or eliminate future RMDs. A Roth conversion involves moving pre-tax money from a traditional IRA or 401(k) into a Roth IRA. The catch is that you must pay income taxes on the converted amount in the year of the conversion.

The primary benefit of a Roth conversion is that once the money is in the Roth IRA, it grows tax-free, and qualified withdrawals in retirement are also tax-free. Crucially, Roth IRAs are exempt from RMDs during the original owner's lifetime. This means that by converting traditional IRA assets to a Roth IRA, you are effectively removing those assets from the RMD calculation pool in the future.

This strategy is most effective when you are in a lower tax bracket, perhaps during a "gap" year between retirement and starting Social Security, or before your RMDs begin. By paying taxes now at a potentially lower rate, you avoid higher RMDs and potentially higher tax rates in the future. It also provides a tax-free legacy for your heirs, as inherited Roth IRAs are subject to RMDs, but the distributions are tax-free.

However, Roth conversions require careful planning. The immediate tax bill can be substantial, so you need to ensure you have funds available to pay those taxes from outside the converted amount. It's also important to consider how a large conversion could impact your AGI for the year, potentially affecting other tax credits, deductions, or Medicare premiums. Financial advisors often recommend a series of smaller Roth conversions over several years (known as "laddering" Roth conversions) to manage the tax impact.

Investment Considerations for RMDs

Your investment strategy should adapt as you approach and enter the RMD phase. The need to take annual distributions can influence how you manage your portfolio, particularly regarding asset allocation and withdrawal sequencing.

One key consideration is maintaining sufficient liquidity to meet your RMDs without being forced to sell assets at an inopportune time. While you don't necessarily need to hold your entire RMD amount in cash, having a portion of your portfolio in more stable, liquid assets (like money market funds, short-term bonds, or dividend-paying stocks) can provide the necessary funds.

Another strategy involves tax-efficient withdrawal sequencing. If you have multiple types of accounts (taxable brokerage accounts, tax-deferred IRAs/401(k)s, and tax-free Roth IRAs), you can strategically choose which accounts to draw from first. A common approach is to:

1. Take RMDs from tax-deferred accounts: These are mandatory, so you must take them.

2. Withdraw from taxable accounts: If additional funds are needed, consider withdrawing from taxable brokerage accounts, aiming to minimize capital gains taxes.

3. Draw from Roth IRAs last: Since Roth withdrawals are tax-free, they are often considered the last resort for income, preserving their tax-free growth for as long as possible.

This sequencing can help manage your taxable income and preserve your tax-advantaged accounts for longer. For those nearing or in retirement, working with a financial advisor to create a comprehensive withdrawal strategy is highly recommended to optimize tax efficiency and ensure your portfolio supports your long-term income needs. Companies like Augusta Precious Metals or American Hartford Gold might be considered for diversifying a portion of retirement assets, but it's crucial to understand the liquidity constraints and storage costs associated with physical gold or silver before incorporating them into an RMD strategy.

Delaying RMDs with a Qualified Longevity Annuity Contract (QLAC)

A Qualified Longevity Annuity Contract (QLAC) is a specialized type of deferred annuity that allows you to delay RMDs on a portion of your retirement savings beyond the standard RMD age. This strategy can be particularly appealing for individuals concerned about outliving their savings and seeking to defer a portion of their taxable income.

With a QLAC, you use a portion of your traditional IRA or 401(k) funds to purchase an annuity that guarantees income payments starting at a much later age, typically 80 or 85. The key benefit is that the amount invested in the QLAC is excluded from your account balance when calculating your RMDs until the annuity payments begin. This effectively reduces your current RMDs.

As of 2026, the maximum amount you can invest in a QLAC is the lesser of $200,000 or 25% of your total IRA and qualified plan balances. This $200,000 limit is indexed for inflation. The QLAC must meet specific IRS requirements to qualify for this RMD exclusion.

For example, if you have a $1,000,000 IRA balance and purchase a QLAC for $200,000, your RMDs would be calculated based on an $800,000 balance until the QLAC payments begin. This can significantly lower your taxable income in your early RMD years. Once the QLAC payments start, those payments become taxable income.

QLACs offer longevity protection and RMD deferral, but they come with trade-offs. The funds invested are illiquid, and if you pass away before payments begin, the payout to beneficiaries might be less than the original investment, depending on the contract terms. It's essential to weigh the benefits of RMD reduction and guaranteed future income against the lack of liquidity and potential for lower returns compared to other investments. This strategy is best suited for those with substantial retirement savings who prioritize guaranteed income later in life and are comfortable with the annuity structure.

Advanced RMD Planning and Considerations

Beyond the basic rules and common strategies, there are several advanced planning considerations for RMDs. These often involve complex scenarios, such as managing RMDs from multiple account types, understanding the nuances of inherited accounts, and incorporating RMDs into broader estate planning. Proactive and detailed planning can lead to significant tax advantages and smoother wealth transfer.

RMDs for Inherited Retirement Accounts

The rules for RMDs from inherited retirement accounts are notoriously complex and depend heavily on the relationship of the beneficiary to the original account owner, as well as the owner's date of death. Misunderstanding these rules can lead to substantial penalties for beneficiaries.

As discussed, for individuals who inherited an IRA from someone who died after December 31, 2019, the 10-year rule generally applies to non-eligible designated beneficiaries. This means the entire account must be distributed by the end of the 10th year following the original owner's death. However, a critical clarification from the IRS in 2022 stated that if the original owner had already begun taking RMDs before their death, the non-eligible designated beneficiary must continue taking annual RMDs based on their own life expectancy during years 1-9, and then distribute the remainder by the end of year 10. If the original owner died before their RMDs began, no annual RMDs are required during the 10-year period, but the entire account must still be liquidated by the 10-year deadline.

Eligible designated beneficiaries (surviving spouses, minor children, disabled or chronically ill individuals, and individuals not more than 10 years younger than the deceased) can still "stretch" RMDs over their own life expectancy. Spouses have the most flexibility, often able to roll the inherited IRA into their own.

For beneficiaries of accounts where the original owner died before January 1, 2020, the "stretch IRA" rules generally apply, allowing beneficiaries to take RMDs over their own life expectancy, often resulting in smaller annual distributions and longer tax deferral.

The implications for inherited accounts are significant for estate planning. For example, leaving a Roth IRA to beneficiaries can be more tax-efficient than a traditional IRA, as Roth RMDs are tax-free, even though they are still mandatory for beneficiaries. Working with an estate planning attorney and a financial advisor is crucial to navigate these intricate rules and optimize outcomes for heirs.

Aggregation Rules for Multiple Accounts

While the basic RMD calculation is straightforward, managing multiple retirement accounts introduces specific aggregation rules that can simplify the distribution process or, if misunderstood, lead to errors.

The aggregation rules differ based on the type of account:

• IRAs (Traditional, SEP, SIMPLE): If you have multiple traditional IRAs, you must calculate the RMD for each IRA separately. However, you can then add up these individual RMDs and withdraw the total amount from any one or a combination of your traditional IRAs. This provides flexibility and can reduce the number of transactions you need to manage. The same aggregation rule applies to SEP IRAs and SIMPLE IRAs, but you cannot aggregate RMDs across different types of IRAs (e.g., you can't satisfy a traditional IRA RMD from a SEP IRA).
• Employer-Sponsored Plans (401(k), 403(b), 457(b)): For 401(k)s, each plan is treated separately. You must calculate the RMD for each 401(k) and withdraw that specific amount from that specific 401(k) plan. You cannot aggregate 401(k) RMDs and take the total from just one plan. However, a special rule applies to 403(b) accounts: if you have multiple 403(b) plans, you can calculate the RMD for each, but then you can aggregate them and take the total RMD from any one or combination of your 403(b) accounts. This is similar to the IRA aggregation rule.
• Mixed Accounts: You cannot aggregate RMDs across different types of accounts. For example, you cannot satisfy your traditional IRA RMD from your 401(k), or vice-versa.

Understanding these aggregation rules is essential for accurate RMD compliance. Many financial institutions will calculate RMDs for accounts held with them, but the responsibility for ensuring the correct total amount is withdrawn across all accounts ultimately rests with the account holder.

RMDs and Estate Planning

RMDs play a significant role in comprehensive estate planning, influencing how you structure your legacy and the tax burden on your beneficiaries. Strategic decisions made during your lifetime can significantly impact the financial well-being of your heirs.

One primary consideration is the choice of beneficiary. Designating a spouse as a beneficiary offers the most flexibility, allowing them to roll over the inherited IRA into their own and defer RMDs until their own RMD age. This can extend the tax-deferred growth for decades.

For non-spousal beneficiaries, the 10-year rule (or the stretch option for eligible designated beneficiaries) dictates the timeline for distributions. If you have significant traditional IRA assets, considering Roth conversions during your lifetime can be a powerful estate planning tool. By converting traditional IRA funds to a Roth IRA, you pay the taxes now. Your beneficiaries then inherit a Roth IRA, which is subject to the 10-year rule, but all distributions they take are entirely tax-free. This can be a substantial benefit, especially if your beneficiaries are in their peak earning years and higher tax brackets.

Another strategy involves using life insurance to replace the value of assets that might be depleted by RMDs and associated taxes. You could take RMDs, pay the taxes, and then use a portion of the after-tax proceeds to pay premiums on a life insurance policy. The death benefit from a life insurance policy is generally income tax-free to beneficiaries, providing a tax-efficient way to transfer wealth.

Finally, incorporating Qualified Charitable Distributions (QCDs) into your RMD strategy can also be an estate planning move. If you plan to leave a portion of your estate to charity, making QCDs during your lifetime can satisfy your RMDs tax-free and reduce the size of your taxable estate, potentially benefiting other heirs by lowering the overall tax burden.

Effective RMD and estate planning requires a holistic view of your assets, your beneficiaries' needs, and your charitable intentions. Consulting with both a financial advisor and an estate planning attorney is highly recommended to develop a strategy that aligns with your financial goals and minimizes tax liabilities for your loved ones.

Frequently Asked Questions

What is the current age for starting Required Minimum Distributions (RMDs)?

As of 2026, the general age for beginning Required Minimum Distributions (RMDs) from most tax-deferred retirement accounts is 73. This age was raised from 72 by the SECURE Act 2.0.

What happens if I miss an RMD deadline?

If you fail to take your full Required Minimum Distribution by the deadline, the IRS imposes an excise tax penalty. As of 2026, this penalty is 25% of the amount not distributed, which can be reduced to 10% if the shortfall is corrected promptly.

Can I avoid RMDs by converting to a Roth IRA?

Yes, converting funds from a traditional IRA or 401(k) to a Roth IRA can help you avoid future RMDs on those specific assets during your lifetime. Roth IRAs are not subject to RMDs for the original owner, though you will pay income taxes on the converted amount in the year of conversion.

Are Roth IRAs subject to RMDs?

No, Roth IRAs are exempt from Required Minimum Distributions during the original owner's lifetime. However, beneficiaries who inherit a Roth IRA are generally subject to RMD rules, typically the 10-year distribution rule, though the distributions themselves are tax-free.

Can I use my RMD for charitable donations?

Yes, if you are age 70½ or older, you can make a Qualified Charitable Distribution (QCD) directly from your IRA to an eligible charity. This distribution counts towards your RMD for the year and is excluded from your taxable income, up to a maximum of $105,000 as of 2026.

How do RMDs work if I'm still employed?

If you are still working for the employer sponsoring your 401(k) or 403(b) plan at age 73 and are not a 5% owner, you can typically delay RMDs from that specific plan until you retire. However, this "still-working exception" does not apply to traditional IRAs; you must still take RMDs from your IRAs.

What is the 10-year rule for inherited IRAs?

The 10-year rule generally applies to non-spousal beneficiaries who inherited an IRA from someone who died after December 31, 2019. It requires the entire inherited account to be distributed by the end of the calendar year containing the 10th anniversary of the original owner's death. If the original owner had already started RMDs, the beneficiary must also take annual RMDs during years 1-9.

Key Takeaways

• RMD Age is 73: As of 2026, most individuals must begin taking Required Minimum Distributions from tax-deferred accounts by age 73.

• First RMD Deadline Flexibility: Your first RMD can be delayed until April 1 of the year following the year you turn 73, but this results in two RMDs in that year.

• Significant Penalties for Non-Compliance: Failing to take your RMD results in a 25% excise tax on the missed amount, which can be reduced to 10% if corrected promptly.

• Roth IRAs are RMD-Exempt: Original owners of Roth IRAs are not subject to RMDs, offering a powerful tax-free growth and distribution vehicle.

• QCDs Offer Tax-Free RMD Satisfaction: Qualified Charitable Distributions allow individuals 70½ and older to satisfy RMDs tax-free by donating directly to charity, up to $105,000 annually.

• Roth Conversions Reduce Future RMDs: Strategically converting traditional IRA assets to a Roth IRA, paying taxes now, can eliminate future RMDs on those funds.

• Inherited IRA Rules are Complex: Beneficiary RMD rules depend on the relationship to the deceased and the date of death, with the 10-year rule now common for non-spousal heirs.

Conclusion

Navigating Required Minimum Distributions is an essential part of effective retirement planning. While the rules can seem intricate, understanding the basics of which accounts are subject to RMDs, the current age requirements, and the calculation methods is the first step toward compliance. Proactive planning can help you avoid costly penalties, which, while reduced by the SECURE Act 2.0, still represent a significant financial hit.

Beyond mere compliance, strategic approaches like Qualified Charitable Distributions and Roth conversions offer powerful ways to optimize your tax situation, manage your income, and enhance your legacy. Whether you're considering a series of Roth conversions to lower future tax burdens or using QCDs to support causes you care about, integrating RMD planning into your broader financial strategy is crucial. The complexities of inherited IRAs and the nuances of aggregation rules further underscore the value of professional guidance. Don't leave your retirement income to chance; take the time to understand and strategically manage your RMDs to secure your financial future.

Disclaimer: This article is for informational and educational purposes only and does not constitute financial, investment, or tax advice. Always consult a qualified financial advisor before making investment decisions.