ONE OF THE MOST important investment decisions you will ever make is not whether to retire but when you chose to do it. Every American looks forward to the day when they can trade the 9-to-5 grind for a little bit of well-deserved rest and relaxation. But the easiest way to erase decades of smart saving — picking the right funds, contributing the right amounts — is to start taking big withdrawals at the wrong time, especially if the stock market is in the midst of a prolonged slump.
By tapping an account during a down period, investors run the risk of eating into years of valuable retirement income that they may never be able to regain. They may have the money today but as the typical American starts to live well into their 80s they may not have that money down the road. This is particularly important now, since there is a lot of uncertainty in the market. Luckily, there are some easy steps you can take, like getting a handle on what financial pros call your investment horizon, to help you insulate yourself from this problem.
