UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next
Author: imuafool Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: The SWR Dilemna Date: 11/10/2008 3:03 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Billjam,

A recent InvestorsInsight article, "Retirement Focus - What Now???", by Mike Posey, addresses your dilemma under the section, Avoiding Costly Bear Market Mistakes.

Many retirees now fear that their nest eggs may not carry them through retirement after having been devastated by the recent stock market decline...To help any readers who may be in that situation, I offer the following advice on ways to avoid making costly investment mistakes in retirement:

1. Keep retirement distributions realistic.
Many experts suggest a more reasonable withdrawal rate of 4% to 6% per year is most appropriate. If that was true before the recent market meltdown, it may be necessary to withdraw even less than 4-6%, especially for retirement portfolios that may have suffered significant losses. Increasing the withdrawal rate on a portfolio of assets that has declined in value only makes the problem worse, and hastens the day when the portfolio can no longer provide a sufficient income stream. Seek out other ways to supplement income rather than by increasing your withdrawal rate to a level that may be unsustainable.

2. Be careful when liquidating assets.
If you have an equity portfolio that has suffered major losses, you may want to resist the temptation to cash out now.
As these selling pressures diminish over time,it's possible that equity prices will eventually rebound. And while they may not get back to their original October 2007 values, they may pare losses enough to make it worthwhile to have waited to liquidate.

3. Don't try to "make it all back" in risky investments.


Here's the link:
http://www.investorsinsight.com/blogs/forecasts_trends/archi...

Ray
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (9) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
2013 Feste Award Voting Begins!
Who will win the 2013 Feste Award? Vote now for the Fool that most exemplifies the Fool Community mission of Learning Together!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

The American Energy Revolution
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement