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:
Your income is 4% of your portfolio plus your early SS.
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.
The band of 401(k)-created millionaires jumped by 27% in 2024, increasing from 422,000 to 537,000, while the number of IRA-created millionaires bumped up 8% over the year from 318,863 to 344,413, according to a new analysis by Fidelity Investments…
Gen X savers had the most bulging balances — average account balances were up 18% from a year ago, $508,000 vs. $589,400. For those Gen Z savers who held their 401(k) for five years, accounts popped to an average of $52,900 — an increase of 66% over the past year…
Here’s how 401(k)-created millionaires break down by generation: More than 4 in 10 are boomers: 41%, Gen X: 57%, and millennials: 2%. “Boomers have already started drawing from their retirement savings, which is why the number is lower than Gen X at this point,” Shamrell said.
I’m not sure how this can be possible with how bad, some were saying, the country was doing these last years. I would of thought that we would have less 401k millionaires not more?!?!