Systematic Withdrawal Plan, lets retirees tap their mutual funds regularly for income, like a pension, while their remaining investment keeps growing, here are some things to know.
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An SWP helps you withdraw money from your mutual fund investments in a structured way, like a paycheck.
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An SWP lets you gradually redeem your investments, providing a steady income stream for retirement.
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It also provides flexibility by allowing you to adjust the withdrawal amount based on your needs.
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A portion of your investment remains invested, which can grow over time, even while you withdraw income.
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You can set up a SWP in their mutual fund investments to provide them with regular income during their retirement years.
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An SWP can be a valuable tool in your parents' retirement planning strategy.
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Consider consulting a financial advisor to discuss your parents' specific needs and determine if an SWP is the right strategy for them.