Two alternatives for struggling retirees who don't want to drain their savings
Last updated 6/17/2020 at 12:47pm
By Chris Orestis
Financial professionals often have this word of advice when the market takes a tumble and your 401(k) and other retirement accounts lose value:
Ride it out. If you make a move now, you are locking in your losses. The market will come back – if you’re patient.
That’s great advice for younger investors who have time on their side. It’s less so for retirees who need that money for weekly living expenses right now. With every withdrawal they make, they are lowering the account’s balance, which means when the recovery does happen, they won’t enjoy its full power.