Chapter 24

Managing Distribution Options

Introduction

Investors often have unrealistic expectations about the amount of money that their retirement savings could generate. Someone with a $250,000 account balance might approach retirement thinking that he or she could withdraw $2,000 per month to supplement lifestyle demands. Is this realistic? The short answer is no in our current interest rate environment if he or she wants the account to be sustainable for a long period of time. Clients need to understand the level of income they could expect from their savings as they prepare mentally for retirement.

They also need to understand the withdrawal options they have available to them beyond the required minimum distribution (RMD). Trained financial ...

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