Core Insights - The article discusses the considerations for a newly retired individual regarding the management of their 401(k) and potential transfer to a traditional IRA, emphasizing the importance of aligning investment strategies with personal goals and risk tolerance [2][4][5]. Group 1: Financial Position - The individual is in a stable financial position, not requiring withdrawals from their account for another five years, indicating sufficient other income or savings [4]. - The 401(k) was initially invested aggressively with a 90/10 stock to bond split, resulting in a 30% loss, but has since recovered approximately 20% [2]. Group 2: Asset Allocation - A 90% allocation in stocks is considered aggressive for retirees, as most would benefit from a more stable investment mix to facilitate regular withdrawals [5]. - The individual may have a longer investment horizon and the capacity to maintain an aggressive stock allocation if they do not need the funds upon reaching RMD age [6]. Group 3: Risk Tolerance - The individual's decision to hold investments rather than panic-sell during market downturns suggests a high risk tolerance, but stress levels during this period should also be considered [7].