For many retirees, the biggest fear isn’t a health event — it’s the possibility of outliving their money.
And if you make a habit of dipping into your retirement savings at random instead of having a strategy, you could end up with $0 to your name with plenty of years left on the planet
For this reason, financial experts strongly encourage savers to come up with a strategic withdrawal rate based on their asset allocation, income needs, and retirement timeline. But even if you come up with a withdrawal rate that works in theory, in practice, you’re not guaranteed to never run out of funds. There’s one mistake retirees make all too often that could put their savings at risk.
And it’s a misstep you’ll want to avoid. The early withdrawal mistake that could drain your portfolio One of the most damaging behaviors retirees engage in is withdrawing a fixed dollar amount from their portfolios regardless of market conditions. While the consistency of sticking to that fixed amount may feel safe, it can create unintended consequences during periods of market volatility.