Follow a withdrawal strategy

Laura Evans

Updated: Apr 17, 2008, 9:00 AM

Published: Apr 1, 2008, 7:37 PM

When you’re working, you probably focus on how much you’re putting in to your investment portfolio. But when you retire, how much you take out will be a matter of considerable interest. And that’s why you have to prepare the proper withdrawal strategies.

Specifically, once you retire, you’ll need to decide what percentage of your investment portfolio you can withdraw each year without running out of money. How much can you take out annually?

There’s no one right answer for everyone. However, when you’re considering a suitable withdrawal rate, you’ll need to consider a few different factors - one of which is your age at retirement. Given today’s longer life expectancies, you could easily be around - and incurring a wide variety of expenses - when you are 90 or older. Consequently, the younger you are when you retire, the lower your annual withdrawal rate should be.

But, when determining your ideal withdrawal rate, it isn’t just the sheer number of years that you need to consider - it’s also what’s happening to your purchasing power during those years. Even with a relatively mild annual inflation rate of 3 percent, it would take just 25 years for the cost of living to essentially double. So, if you need, say, $75,000 per year to cover your expenses when you retire, you will need $150,000 per year in 25 years. If we go through a period in which inflation rises significantly, you might have to scale back your annual withdrawals or adjust your investment portfolio to provide more opportunities for growth.

And, speaking of your investment mix, it’s also a key factor in determining your annual withdrawal rate. If you own mostly fixed-rate investments, such as bonds and certificates of deposit (CDs), you will probably have to take smaller withdrawals each year than you would if your portfolio contained a greater percentage of stocks. That’s because stocks, over time, have more growth potential than other types of investments - and you will unquestionably need this growth to combat the two threats to your retirement income described above: longevity and inflation. (Of course, stocks also carry the risk of losing some, or all, of your principal, but if you invest in an array of quality stocks and hold them for the long term, it doesn’t guarantee a profit or protect against loss but you may be able to help reduce the effects of price volatility.)

Another factor behind your annual withdrawal rate is the amount of income you can expect from other sources. If you open a small business or do some consulting, you may be able to withdraw less from your investment portfolio than if you had no earned income during your retirement years. You also may be able to make lower annual withdrawals if you’ve built up a sizable pension or 401(k), supplemented by your monthly Social Security checks.

Your financial advisor can help you develop a withdrawal strategy that is suitable for your individual needs and that can counter the effects of inflation, longevity and market volatility. By making the right moves at the right time, you can go a long way working toward the retirement lifestyle you’ve envisioned.

Record April boosts Savannah's container trade at port

The Port of Savannah moved 356,700 20-foot equivalent container units in April, an increase of 7.1 percent. - photo by Provided

GardenCityTerminal — The Port of Savannah moved 356,700 20-foot equivalent container units in April, an increase of 7.1 percent. - photo by Provided

Bryan County News

Updated: May 23, 2018, 1:59 AM

Published: May 23, 2018, 2:00 AM

The Georgia Ports Authority's busiest April ever pushed its fiscal year-to-date totals to more than 3.4 million 20-foot equivalent container units (TEUs), an increase of 8.8 percent, or 280,000 TEUs, compared to the first 10 months of fiscal 2017.

"We're on track to move more than 300,000 TEUs in every month of the fiscal year, which will be a first for the authority," said GPA Executive Director Griff Lynch. "We're also anticipating this to be the first fiscal year for the Port of Savannah to handle more than 4 million TEUs."

April volumes reached 356,700 20-foot equivalent container units, up 7.1 percent or 23,700 units. As the fastest growing containerport in the nation, the Port of Savannah has achieved a compound annual growth rate of more than 5 percent a year over the past decade.

"As reported in the recent economic impact study by UGA's Terry College of Business, trade through Georgia's deepwater ports translates into jobs, higher incomes and greater productivity," said GPA Board Chairman Jimmy Allgood. "In every region of Georgia, employers rely on the ports of Savannah and Brunswick to help them become more competitive on the global stage."

To strengthen the Port of Savannah's ability to support the state's future economic growth, the GPA Board approved $66 million in terminal upgrades, including $24 million for the purchase of 10 additional rubber-tired gantry cranes.

"The authority is committed to building additional capacity ahead of demand to ensure the Port of Savannah remains a trusted link in the supply chain serving Georgia and the Southeast," Lynch said.

The crane purchase will bring the fleet at Garden City Terminal to 156 RTGs. The new cranes will support three new container rows, which the board approved in March. The additional container rows will increase annual capacity at the Port of Savannah by 150,000 TEUs.

The RTGs will work over stacks that are five containers high and six deep, with a truck lane running alongside the stacks. Capable of running on electricity, the cranes will have a lift capacity of 50 metric tons.

The cranes will arrive in two batches of five in the first and second quarters of calendar year 2019.

Also at Monday's meeting, the GPA Board elected its officers, with Jimmy Allgood as chairman, Will McKnight taking the position of vice chairman and Joel Wooten elected as the next secretary/treasurer.

For more information, visit gaports.com, or contact GPA Senior Director of Corporate Communications Robert Morris at (912) 964-3855 or rmorris@gaports.com.

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