A 67-year-old retiree with a $750,000 401(k) faces the challenge of making their savings last. The article emphasizes the importance of understanding personal financial goals before making investment decisions. Assessing lifestyle needs, other assets, and potential expenses like healthcare is vital for creating a sustainable retirement plan. Considering these factors is the first step.

Assessing asset location is as important as asset allocation. The article suggests reviewing the 401(k) plan's withdrawal options. Options include partial withdrawals, rolling over to an IRA, or outright withdrawals. Leaving assets in the 401(k) may offer lower-cost investment choices. Moving assets gives access to a broader range of investment options and avoids administrative fees.

Managing risk is critical, focusing on longevity risk and investment risk. To mitigate longevity risk, the article recommends allocating a portion of the portfolio to equities. Diversification within equity and fixed-income allocations is also suggested, using pooled investment vehicles like mutual funds or ETFs. Adjusting asset allocation to align with individual risk profiles is key.

For those nearing or in retirement, it's wise to consult a financial advisor. They can help navigate complex decisions and risks, tailoring investment strategies to individual circumstances. This includes helping to determine the right mix of investments, considering both risk and return, to ensure long-term financial security during retirement.