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3 Retirement Distribution Pitfalls (and How to Work Around Them)

These mistakes trip up many retired investors, but you can avoid them with a bit of planning.

Christine Benz 29.11.2013

Much of the financial media is concerned with making money in the market, and for good reason: Accumulation is a key facet of financial success.

However, you tend to see far less about portfolio drawdown, or decumulation--the logistics of managing a portfolio from which you're simultaneously extracting living expenses during retirement.

Managing a portfolio during the decumulation phase deserves more attention because it's also far more complicated than accumulating assets, in my view. Not only do you have to figure out whether you've saved enough to actually retire--which can be pretty nerve-wracking because you don't know how long you'll need your money to last--but you also have to figure out how to balance long-term growth with your near-term income needs.

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About Author

Christine Benz  Christine Benz is Morningstar's director of personal finance and author of 30-Minute Money Solutions: A Step-by-Step Guide to Managing Your Finances and the Morningstar Guide to Mutual Funds: 5-Star Strategies for Success. Follow Christine on Twitter: @christine_benz and on Facebook.

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