Retirement account withdrawals
How should withdrawals be taken from retirement accounts? Factors include investment style and the amount which is withdrawn each year. The manner in which withdrawals are taken from retirement savings account has a significant impact on how long these assets will last. A common practice in the financial services industry is to use Monte Carlo simulations to estimate probabilities of certain outcomes occurring with respect to how withdrawals will affect the retirement assets over time. In this article we will illustrate how retirement account withdrawals can have different results by using two simple examples.