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Are you withdrawing too much from your portfolio?

The Wall Street Journal over the weekend ran this article on retirees and their annual withdrawal rates.  An investor needs to review their portfolio to get a feel for the amount they can withdraw annually, taking into consideration all forms of income and expected expenses over retirement.  Big swings in the market early in retirement can have significant effects on the level of your withdrawal compared to your portfolio size.  Once a withdrawal rate is established its not a “set it and forgot it” issue.  It should be reviewed annually to see if the amount still makes sense, or if it can be revised up or needs to be reduced.