How to Write an Investment Letter to Terminate Withdrawal

by Wanda Thibodeaux

Some forms of investment, such as pension plans, allow investors to put funds in the account automatically through their bank or payroll deductions. Although companies might have some restrictions on when an investor may stop automatic investment options, an investor can send a letter to stop it. The letter must be clear in terms of your authority to cease the withdrawals, as well as the account or accounts involved.

Type your name and contact information. Double return, type the name and address of the recipient and double return again. Type "Date:" followed by the date. Return twice and type "RE: investment withdrawal." Double return one more time and write your salutation, followed by a colon.

State that you are writing to terminate the automatic withdrawal from your account into your investment fund. Specify the parties involved in the investment agreement, the amount of the automatic withdrawals, the account numbers involved and the date on which the withdrawals normally occur. Return twice.

Explain the right you have to terminate the withdrawal. For example, quote a clause from the investment agreement or a law that pertains to the investment account.

Detail your understanding of what should happen following termination, again quoting pertinent clauses of the investment agreement, or current laws. For example, state that your account is to close, that you'll receive an annuity or lump sum payment, and whether you have any additional obligations to the recipient. This is particularly important if you have multiple investment accounts with the same company.

Double return and detail all the enclosures you're providing, if any. Instruct the recipient how to contact you.

Double return again and write your closing, followed by a comma. Return at least four times to leave room for your signature. Type your full name. Return two more times and write "Enclosures:" followed by either a list of the enclosures, or the number of enclosures you're providing.

Proofread, print and send the termination of automatic withdrawal letter.

Items you will need

  • Investment account numbers
  • Investment agreement
  • Copies of regulations pertaining to the withdrawal

About the Author

Wanda Thibodeaux is a freelance writer and editor based in Eagan, Minn. She has been published in both print and Web publications and has written on everything from fly fishing to parenting. She currently works through her business website, Takingdictation.com, which functions globally and welcomes new clients.

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