Withdrawal Strategies

indexgurus — Tue, 02 Nov 2010 21:53:24 +0000

Instead of using one withdrawal strategy to fund all your retirement expenses, you might consider funding your various income needs (e.g., essential, discretionary) separately and combining different investment withdrawal strategies to meet your income needs as a whole. Combining strategies to meet your specific needs can often lead to a higher level of confidence that you will reach your retirement goals, especially when the assets supporting each income need are invested according to that need.

Portfolio Withdrawal Strategies

Fixed-Dollar Withdrawals:
Withdraw a fixed dollar amount one time or for a specified period of time.
Inflation-Adjusted Withdrawals:
Withdraw an appropriate amount in the first year. Increase the dollar amount withdrawn by the rate of inflation in subsequent years.
Fixed-Percentage Withdrawals:
Withdraw a fixed percentage of the portfolio annually. The dollar amount withdrawn will vary with portfolio value.
Withdrawal of Investment Earnings:
Withdraw only the income (e.g., dividends, interest) created by the underlying investments.

Talk to your financial professional at Index Gurus today about creating an income and investment plan to help meet your specific retirement needs.

Index Gurus, Inc. : Personalized Money Management | Income | Retirement

Withdrawal Strategies