401(k) millionaires

[spinning]

@syke6

Everyone’s situation is different, but in my case because delaying means I have more income in the later period, that means I can spend more in the early period.

For one person, if you follow the 4% rule, this is always true. You can spend more from day one if you delay taking SS.

Compare two strategies:

1. Your income is 4% of your portfolio plus your early SS.
2. Take enough out of your portfolio to cover the larger SS amount for the years of delay and put them in treasuries. Your income is now 4% of your reduced portfolio plus the larger SS, first from your treasuries and then from SS.

The second strategy always gives you more income from day one.* The larger SS outweighs the smaller portfolio. It’s just math. No waiting. No break-even dates. Just more money.

*provided your portfolio is large enough to cover the delay. If not, take SS early.