William Burrows

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Post Info TOPIC: I have a drawdown plan and am worried


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I have a drawdown plan and am worried
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I have a drawdown plan and am worried that it is falling value because the share prices are going down

What can I do about it. I have heard its possible to get annuity



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Billy

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There are several things you can do:

1 Sit it out and hope the value increases - if the investment strategy was right at the outset a dip in the value should not be a problem as it would have been factored in when the investment was made
2 Switch into safer investments - be careful not to lock into losses and miss out from a market bounce
3 Buy an annuity - but watch out for comments in 2 i.e. not selling out at the wrong time

It is easy to be wise after the event but a good drawdown plan will make sure there is enough cash so income can be taken without having selling funds when they have lost value. This is called managing sequence of returns risk

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