Core Insights - As retirement approaches, reallocating a 401(k) is essential for balancing growth, income, and risk to ensure savings last through retirement [1][2] - Investors in their 50s are shifting from aggressive saving to strategies that protect their savings while supporting a sustainable withdrawal rate [1][2] Risk Assessment and Financial Needs - At age 55, risk tolerance typically declines, but the need for growth remains to outpace projected inflation of 2.6% annually by 2026 [4] - Evaluating comfort with market volatility is crucial, as well as considering the size of the 401(k), other assets, and expenses [5] - A conservative approach is viable if a 4% withdrawal rate covers living costs, such as $40,000 annually from a $1 million portfolio [5] Investment Strategy - A common guideline for asset allocation for a 55-year-old is 55% in stocks and 45% in bonds, with stocks historically averaging 7% real returns since 1928 and bonds yielding about 4% [3][7] - Target-date funds can automatically adjust allocations to become more conservative as retirement nears [3] - Reallocating a 401(k) should be gradual to avoid locking in losses or missing growth opportunities [7]

This ETF allocates most of its assets to fixed-income ETFs.It's hard to believe, but we're near the end of 2025. It's been quite a year, too. We've seen a new presidential administration take office, a huge tax and spending law enacted, and a changing U.S. tariff policy that faces a Supreme Court challenge.Unsurprisingly, the equity market was volatile, with the S&P 500 (^GSPC 0.01%) declining significantly in March and April. However, it rebounded, returning 16.6% year to date through Dec. 3.Looking ahead, ...