For many retirees, the biggest financial challenge isn’t how to grow their nest egg—it’s how to avoid outliving it. That makes the retirement withdrawal strategy just as important as the accumulation phase. Unfortunately, far too many people enter retirement with a vague plan—or worse, no plan at all—about how they’ll draw down their savings.
What’s needed is a thoughtful, flexible strategy that accounts for market volatility, taxes, inflation, and longevity risk. There’s no one-size-fits-all approach, but a well-crafted withdrawal strategy can help retirees maintain their lifestyle, reduce tax burdens, and preserve capital for decades.
Let’s explore some of the most widely used and time-tested approaches—and the thinking behind them.
This post originally appeared at Investing Daily.