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Striking the Balance: Using Rebalancing to Generate Cash Flow While Preserving Principal

How to find a proper balance in retirement.

This article was originally published in the Research Portal for Morningstar Office.

In these turbulent times, many older investors are finding that they are more risk averse than they thought they were, while, at the same time, they are concerned about their ongoing cash needs. The result is a balancing act: how to meet the regular need for cash flow against the desire--and need--to preserve principal?