401k Allocation Help!

[Falcaragh31]

I'm 31 and my 401k is at a loss of 7.7%. This is how my current 401k is set up 27% stable value, 15% bond, 6% balanced, 7% lg.us equity, 7% international, 10% sm. us equity, 8% emerging markets, 20% stock.

Please advise given current market situations on what's the best thing for me to do. Should i move some of this around?

Thanks
Sharon

[sweeps]

In my opinion, 48% of your portfolio in sub-equities (27+15+6) is too conservative. You have a long time to retirement so can afford to be more aggressive -- exactly how aggressive depends on your risk tolerance though.

It's been a tough market. Most people's portfolios have taken a big hit. You make the most money buying stocks when they are down, not when they're flying high. My opinion -- move more to stock funds now while they're bargains.

[jIM_Ohio]

If you have that much cash and bonds, and lost 7%, I would think you need to really rethink everything you are doing.

At age 31, you are more than 20 years to retirement. T Rowe Price suggests this allocation be 100% equites (any money needed in 15 years or more is 100% equites for maximum growth).

Large Cap
Mid Cap
Small Cap
Foreign large
Foreign small
Emerging markets

would be the asset classes I would look for.

The current market has NOTHING to do with this advice. Retirement is a long term goal, so use a long term strategy. The market has always bounced back, being 100% equity will let you ride it all the way up.

Buy now.