diff --git a/financial_docs/401k.md b/financial_docs/401k.md
new file mode 100644
index 0000000..932a2b8
--- /dev/null
+++ b/financial_docs/401k.md
@@ -0,0 +1,28 @@
+### 401(k) Strategy for Near-Retirement with Pre-Tax Contributions
+
+As you near retirement, managing a **401(k) with pre-tax investments** requires a shift towards a more conservative, income-focused portfolio that considers market risks, inflation, and the taxation of withdrawals. Below is a clear, actionable approach based on your situation and current economic conditions:
+
+### 1. **Adjust Your Asset Allocation to Lower Risk:**
+   - **Equities (20-25%)**: Reduce your exposure to stocks to limit volatility. Keep **10-15%** in an **S&P 500 Index Fund** for long-term growth and **5-10%** in **Dividend Aristocrat or High-Dividend Yield Funds** to generate steady income from dividends, which are typically more resilient during downturns【16†source】【17†source】.
+   - **Bonds (50-60%)**: Bonds should now form the bulk of your portfolio to provide stability and income.
+     - **Total Bond Market Fund (30-35%)**: Offers broad exposure to government and corporate bonds, balancing income and risk.
+     - **Short-Term Treasury Bonds (15-20%)**: These provide more security, especially in a rising interest rate environment【16†source】【19†source】.
+   - **Cash and Cash Equivalents (10-15%)**: Keeping **cash reserves** in money market funds or short-term investments ensures liquidity for immediate expenses and helps avoid selling assets in a down market【17†source】.
+
+### 2. **Protect Against Inflation:**
+   - **TIPS (5-10%)**: Treasury Inflation-Protected Securities adjust with inflation, preserving purchasing power, which is crucial as you begin withdrawing from your 401(k)【19†source】.
+   - **REITs (5-10%)**: Real Estate Investment Trusts can provide both growth and income and act as a hedge during inflationary periods【17†source】【18†source】.
+
+### 3. **Plan for Tax-Efficient Withdrawals:**
+   - **Minimize Large Withdrawals**: Because your 401(k) withdrawals will be taxed as ordinary income, avoid taking out large sums that could push you into a higher tax bracket. Stick to a **4% withdrawal rate** to ensure longevity of your savings【16†source】【19†source】.
+   - **Bucket Strategy**: Implement a three-bucket approach:
+     - **Bucket 1**: Cash and short-term bonds for 1-2 years of expenses.
+     - **Bucket 2**: Bonds and dividend stocks for medium-term (5-7 years) stability and income.
+     - **Bucket 3**: Equities for long-term growth, covering expenses beyond 10 years【17†source】【19†source】.
+
+### 4. **Economic Cycle Considerations:**
+   - In the current **economic contraction phase**, prioritize **bonds** and **cash reserves** for income stability. This minimizes the need to sell equities at a loss.
+   - **Inflation hedge** with TIPS and REITs to protect against rising costs, while maintaining some equity exposure for long-term growth【18†source】【19†source】.
+
+### Conclusion:
+By rebalancing your 401(k) towards a **50-60% bond allocation**, maintaining **20-25% in equities**, and incorporating **TIPS and REITs** to hedge against inflation, you can secure a steady income, limit volatility, and make tax-efficient withdrawals as you enter retirement. Additionally, a well-implemented **bucket strategy** helps ensure liquidity and growth, while managing both inflationary and market risks effectively. This approach ensures that you are well-positioned to navigate retirement with financial stability.
\ No newline at end of file