At the close of the third quarter, the S&P 500 was down just over 10% for 2011. Retirees living off their portfolios may face tough decisions over the next few months when it comes time to make their next withdrawal. The standard 4% withdrawal rule faces added scrutiny each and every time the market declines. When portfolio income becomes a priority, it is time to abandon your customary mutual fund portfolio and find an investment strategy aligned with your objectives.