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Ask an Advisor: I Need $3500 Per Month to Cover My Expenses. Should I Take Social Security or Tap My 401(k)?

The article on MSN Money discusses a retiree's dilemma on whether to start taking Social Security benefits or to withdraw from their 401(k) to meet their monthly expenses of $3,500. Financial advisor Brandon Renfro outlines several considerations: firstly, the timing of Social Security benefits is crucial as delaying can increase the monthly benefit amount, but immediate needs might necessitate earlier withdrawal. He suggests calculating the break-even point for Social Security to understand the financial implications of starting benefits early versus later. For the 401(k), Renfro advises considering the tax implications of withdrawals, the longevity of the funds, and the potential for investment growth if left untouched. He also mentions the possibility of using a combination of both strategies, like taking partial Social Security while supplementing with 401(k) withdrawals, to balance immediate needs with long-term financial security. The article emphasizes the importance of personalized financial planning, considering one's health, other income sources, and potential changes in financial needs or laws.

Read the Full SmartAsset Article at:
[ https://www.msn.com/en-us/money/retirement/ask-an-advisor-i-need-3500-per-month-to-cover-my-expenses-should-i-take-social-security-or-tap-my-401-k/ar-AA1B5bP0 ]