systematic withdrawal plan(redirected from Systematic Withdrawal Plans)
Systematic withdrawal plan
A provision of certain mutual funds to pay out to the shareholder specified amounts after specified periods of time.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
Systematic Withdrawal Plan
A way to receive regular payments from an annuity, mutual fund, or other investment vehicle. One way of conducting a systematic withdrawal by selling one's interest in an investment vehicle slowly over time and keeping the cash from the sales. This reduces the risk that the investor will sell all of one's interest at once and receive a lump sum payment when the market is in a downturn. Systematic withdrawals may occur automatically, such as in Social Security or in some retirement plans.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
systematic withdrawal plan
See withdrawal plan.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.