Systematic Withdrawal Plan

A systematic withdrawal plan (SWP) is a scheduled investment withdrawal plan typically used in retirement whereby a specific share amount (e.g. 10 shares per month), dollar amount (e.g. $1,000), or percentage amount (e.g. 1%) is sold each month to provide monthly income to an investor. Mutual funds typically allow an investor to determine a systematic withdrawal plan that includes interval payouts monthly, quarterly, semi-annually or annually.