Should You Draw on Your 401k to Delay Social Security?

There is a lot to think about as you approach retirement, the top of the list is the tradeoff between drawing on your 401k and drawing Social Security. Should these both be done at the same time or should you wait to draw social security for a bigger payment?

Using the following parameters we examine the options:

Average Cost of Living Adjustment: 2%

Average 401k return 5%

Life expectancy 84 years

Outcome: select choice 1 – draw 401k and delay Social Security

In the original option, delaying Social Security optimizes the economics
If your return on your 401K) moves from 5 to 6% drawing Social Security early makes the most sense.
If your COLA goes down (on average), then taking Social earlier makes the most sense economically

So which way do you go? Watch the video on YouTube for more information click here.

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