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Systematic withdrawals

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SYSTEMATIC WITHDRAWALS

1. Systematic withdrawals

2. Planning your withdrawals

3. How systematic withdrawals work

4. Fixed dollar vs. percentage

5. Minimum required distributions

6. Withdrawals vs. annuitization

7. How much to withdraw

8. Setting up systematic withdrawals

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Fixed dollar vs. percentage

What type of systematic withdrawal should you set up? Here are the pros and cons of each method. But the good news is that you can always make changes:

	Pros	Cons

Fixed dollar	Predictable dollar amount can help you budget to meet your needs.	If your account value falls, you might end up taking out a larger percentage of your assets and depleting your funds more quickly.
	Smaller, periodic fixed-dollar withdrawals can help reduce the effects of market volatility on your account.
	You can easily set the amount to equal your minimum required distribution.


Percentage	Tying your withdrawal to the value of your account can help you control the rate at which you use your funds, so you don’t run out too quickly.	The payout will fluctuate with your account balance, which could make it harder for you to budget. If the payout falls too low on a tax-deferred account, your withdrawals might fall short of your minimum required distribution and trigger a tax penalty.

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