A woman retired in 2022 with a 401(k) that lost 30% due to aggressive investing. After a 20% recovery, she wonders if she should transfer the funds to a traditional IRA or rebalance the stock/bond split. A financial advisor may help make this decision based on goals and risk tolerance.

The woman’s stable financial position allows her to delay withdrawing from her account until RMDs begin. With a 90% stock allocation, her asset mix is aggressive for most retirees, but her extended investment horizon may justify this. Risk tolerance, goals, and stress levels should also inform her decision.

Aligning investment decisions with personal goals is crucial, whether managing on one’s own or with an advisor. An advisor can provide guidance on asset allocation that fits one’s goals and risk tolerance. Consider a few advisors before choosing one who best aligns with your financial objectives.

Maintain an emergency fund in a liquid account for unexpected expenses. High-interest accounts offer compound interest, but be aware of inflation eroding cash value. Consult a financial advisor for personalized advice on managing investments and achieving financial goals. Consider SmartAsset AMP for marketing automation solutions.

Read more at Yahoo Finance: I’m 5 Years From RMDs and Down 30%. Should I Stay Aggressive or Rebalance?