Withdrawal Plan
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Withdrawal plan

Agreement that a mutual fund will disburse automatic periodic redemptions to the investor.

Withdrawal Plan

1. A strategy in which an investor sells a certain number or type of securities each year. One may use the proceeds to fund any number of things, such as a child's college education or one's own retirement. The risk of a withdrawal plan is the possibility that one may not have sufficient cash to buy replacement securities or, more simply, that one may run out of securities to sell.

2. See: Systematic withdrawal plan.

withdrawal plan

An option offered by some open-end investment companies whereby an investor can receive payments at regular intervals. Withdrawal plans are generally used by people who wish to use their accumulated funds for retirement purposes. Also called systematic withdrawal plan.

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Withdrawal Plan (redirected from Withdrawal Plans)

Withdrawal Plan
(redirected from Withdrawal Plans)