How Can I Make My $750k 401(k) Last Through Retirement at 67?

Core Insights - The article emphasizes the importance of asset location in addition to asset allocation when investing retirement savings, particularly in a 401(k) plan [1][2] - It discusses various options for managing $750,000 in a 401(k) for a 67-year-old retiree, including the potential for partial withdrawals, rollovers to IRAs, or outright withdrawals [2][5] - The article highlights the need for a comprehensive understanding of personal financial situations and retirement goals before selecting an investment strategy [2][12] Investment Options - Leaving assets in a 401(k) may provide lower-cost investment options, such as target date funds and institutional pricing on mutual funds, which can be beneficial for retirees [4] - Moving assets out of a 401(k) can allow for consolidation with other retirement savings and access to a broader range of investment options [5] Risk Management - The article identifies longevity risk, the risk of outliving one's money, and investment risk, the risk of losing investment value, as key concerns for retirees [6][7] - It suggests allocating a portion of the portfolio to equities to combat longevity risk while also including fixed-income investments for stability [8][9] Investment Vehicles - Pooled investment vehicles like mutual funds and exchange-traded funds (ETFs) are recommended for diversifying investments and managing risk [10][11] - Index funds are highlighted as a low-cost option for gaining exposure to large segments of financial markets, while active funds may offer the potential for higher returns at a higher cost [11] Personalization of Strategy - The article concludes that there is no one-size-fits-all approach to investing for capital preservation and cost minimization, and the optimal strategy will depend on individual circumstances and goals [12]