systematic withdrawal plan

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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

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.
References in periodicals archive ?
It analyzes the various retirement income tools, various retirement income strategies: Systematic withdrawal plans (SWP); and bucket (time segmentation) strategies, the role of Social Security, as well as the benefits of using income annuities and life insurance.
The first strategy focuses on straightforward RIGs that can currently be made available in DC plans, including single premium immediate annuities (SPIAs), guaranteed lifetime withdrawal benefit (GLWB) annuities, and systematic withdrawal plans (SWPs) using invested assets.
To tide over the uncertainty over dividend payments in MIPs, investors can opt for systematic withdrawal plans ( SWPs).
"They see the GMWB as similar to systematic withdrawal plans, which are something with which people are already familiar," she adds.
Regular dividend payouts can be replaced by systematic withdrawal plans (SWPs) under which the investor can choose the frequency and quantum of regular payments.
And, in the income phase, the lump sum payouts, systematic withdrawal plans and annuitization features are attractive.

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