Claim Social Security or withdraw from your 401(k) during a bear market? Think carefully

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Consider what you might be giving up

Recession fears are spiking now that major indexes are approaching bear market territory, after months of market volatility that have put a strain on retirees’ and preretirees’ retirement portfolios.Those at an age to claim Social Security may be thinking about claiming sooner than previously planned to give them a source of income and to give their portfolio a chance to recover some losses.

There’s no right answer to when to claim Social Security. An individual receives 100% of the benefits they’re owed at Full Retirement Age, which depends on when they were born. Retirees can begin claiming as early as age 62, but any time before FRA results in a reduced benefit. Individuals can also receive more than what they’re owed for every month they delay up to age 70. Benefits are based on a formula that factors in age and earnings history.

 

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Nothing stops or slows down the increase in the price of oil, gas, food; so inflation will remain high. To fight inflation, Fed will raise interest rate as much as the increase in inflation. High interest rates reduce earnings; hence, kill stocks, create Bear Market & recession.

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