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Systematic Withdrawals

Systematic withdrawals are associated with a technique used to generate income by making periodic redemptions from savings.

Under a systematic withdrawal strategy, each year savings increase with investment returns and decrease by the amount of any withdrawals; if there are periods when income (such as wages) exceed spending, savings increase by the amount of any deposits.

Any scheme that involves putting your money into savings, getting returns on those savings, and taking withdrawals from these savings is a systematic withdrawal strategy.

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Glossary

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