withdrwwal plan is the systematic removal of funds from a mutual fund account over time. Withdrawal plans vary in type and availability among fund companies.
Applying "Withdrawal Plan:" to Securities Exams:
Investors who have saved money for a goal such as retirement will often begin a systematic withdrawal plan to provide current income. The investors will use the payments to meet their monthly expenses. Investors may also use the payments to pay for things such as travel and other non essential expenses.