re: Question on the distribution of retirement savings

quote:

---

One of your options on the day of retirement could be to completely cash out and put the money in the bank.

---

I can't say where this is ever a good idea. Keep the money inside the retirement account. You can get real conservative with it (i.e. all high quality bonds with a year or two of distributions in cash) but that would be as far as I go.

quote:

---

IMO, people with smaller amounts saved would be drawn to the first strategy, because they can't afford to lose. OTOH, those with more saved would be better able to potentially ride out the ups and downs of the market, while having a better chance of higher ROI at the end of retirement.

---

In real life, most people when they don't have enough, leave it in, hoping that growth will make up for what they did not save. Not saying I agree with that strategy, but that is what often happens.