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Systematic withdrawals may help retirees stretch their retirement income 2010-06-07 No matter how well-prepared a retiree may be financially, they may still run the risk of outliving their savings if they do not strategize their withdrawals. Withdrawing too much too soon can endanger their finances and leave them running short when they may need income later in life for medical care or a financial emergency. Most mutual funds offer shareholders systematic withdrawal plans that allow for fixed or variable amounts to be withdrawn at certain intervals, according to Investopedia. Withdrawals, which can be made on a monthly, quarterly, semiannual or annual basis, are popular with retirees who do not hold an annuity but want a guaranteed source of income during retirement. Annuities are also good ways to ensure a sustained form of income during retirement to avoid outliving an individual's income. Similar to a systematic withdrawal plan, annuities offer a number of payment options and investment types which can either focus on maintaining or growing a retiree's income. Depending on an individual's current income level and financial situation, an advisor may be able to provide available investment options and help a retiree find the right one to fit their needs and retirement goals.  |
