My mother has to decide what percent she wants to withdraw from her retirement trust by the end of the month. The percent she decides on will be what she gets each month for all of 2009. The account is way down this year, from around $700,000 to $330,000. Almost all of it is in stocks and stock funds, and it?s not a great time to sell at these low prices.
In the past 8% has always been taken out. I would guess that may be too much. I have read that around 4% is often recommended.
I don?t have much confidence in her bank. They created a risky portfolio of 98% stocks and they have been having her withdraw 8% all the years she has had the trust. My mother is in her seventies, but healthy, and may need the money for years to come.
She has never paid a lot of attention to her finances before, and neither have I. She put together a budget for the first time, but I don?t know how accurate it is. I think it would probably be good for her to go to in independent financial planner or accountant. Unfortunately there isn?t much time to evaluate planners by the end of the month.
What suggestions does anyone have?