Withdrawals
Withdrawing money from a portfolio during a drawdown can deepen the effective loss and lengthen recovery time. Historical recovery charts can mislead because real investors may need to withdraw money during declines. An index recovery does…
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Withdrawing money from a portfolio during a drawdown can deepen the effective loss and lengthen recovery time. Historical recovery charts can mislead because real investors may need to withdraw money during declines. An index recovery does not guarantee an individual household account recovers after withdrawals during the drawdown. Future emergencies and obligations can force withdrawals at unfavorable times even when investors expect to leave money untouched.