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AACreditUnion.org | | 23 23 AACreditUnion.org | | 23 will purchase a larger number of discounted shares. The phenomenon of dollar-cost averaging means over time you can actually wind up owning shares for less than their average cost. It's diff erent in retirement. If the market falls just before or after retirement, you'll have to sell more shares at the lower price when you make withdrawals to cover necessary living expenses. And, since you're no longer saving, you won't be able to catch up even when the market dip is over. "If you add more when it takes those dips, you make more money," explains Chisholm. "If you're in retirement and it takes a big dip and you take money out, it has to come back even more to get back to even. That's the real dilemma." If you're approaching or at retirement, talk with an advisor to help you tailor your portfolio to refl ect your changing risk tolerance. If you have invested for retirement using a target date mutual fund, you may already be appropriately invested to match your retirement-adjusted risk tolerance. Target date mutual funds are set up to gradually move investors less into stock and more into bonds as they approach retirement. After retirement, Chisholm says, retirees can normally continue to use the same funds, which will then be tailored to generate income instead of growth. If you're not sure where you stand, ask an advisor to help you assess. In addition to reconfi guring a portfolio to reduce risk, retirees have to decide how much money they can take out of their retirement accounts. Chisholm says many planners consider 4 percent a year to be a safe withdrawal rate. This will generally minimize an investor's risk of running out of money during his or her lifetime, without being needlessly frugal. will purchase a larger number of discounted shares. The