The 7 Best Stocks to Buy With Your Required Minimum Distribution (RMD) | Markets

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Once you reach the age of 73, there’s no getting around Required Minimum Distributions (RMDs). Yet while there’s no getting around making this compulsory withdrawal from your 401(k) or IRA, consider investing it rather than spending it. How? By building a portfolio of the best stocks to buy with RMD proceeds.

For those already generating substantial streams of income from non 401(k) and/or IRA sources, purchasing growth stocks for long-term appreciation may be an option to consider.

If you’re looking to build multigenerational wealth, you may want to consider the stocks I’ve previously noted as being the best stocks to buy for your children and grandchildren.

However, if you are looking for the opportunity to build another income stream to fund your golden years, consider purchasing stocks with high-yields or high distribution rates. For this, each of the following stocks to buy with RMD funds make for strong choices.

Energy Transfer (ET)

Source: Casimiro PT /

Energy Transfer (NYSE:ET) is a master limited partnership (MLP) that owns midstream energy assets like oil and gas pipelines, as well as oil and gas storage facilities. As pass-through entities, MLPs are not taxed at the entity level. Rather, MLPs distribute a majority of their cash flow to unitholders.

The portion of these distributions deemed to be distributions of the MLP’s net income are then taxed as personal income. These high payouts make MLPs like ET stock great opportunities for income-focused investors. In the case of Energy Transfer, distributions currently provide an 8.11% annual yield.

But even…

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