How Should I Allocate My 401k Savings?

[ugadawgs311]

I recently graduated from college and began working. I'm 22 years and want to begin saving through my 401k. My company's 401k plan is set up through Wells Fargo with the available funds listed below. What would be a good allocation (based on percentages) of my savings in these funds?

Wells Fargo Stable Return Fund G
Wells Fargo Advantage High Yield Bond Fund (Adm)
TCW Total Return Bond N
T. Rowe Price Capital Appreciation
Invesco Van Kampen Growth and Income A
Vangaurd 500 Index Admiral
Davis NY Venture A
American Funds Growth Fund of Amer R3
Goldman Sachs Mid Cap Value A
Dreyfus MidCap Index
Columbia Acorn Z
Federated Kaufmann K
Dreyfus Small Cap Stock Index
Lord Abbett Small-Cap Value A
Munder Micro-Cap Equity A
Wells Fargo Enhanced Stock Market Fund
Templeton Foreign A
Wells Fargo Advantage International Equity Fund I
Thornbug International Value A
Fidelity Advisor Intl Capital App A
Janus Global Technology T
T. Rowe Price Health Sciences

Thanks for any help! It's really appreciated!

[jIM_Ohio]

Step 1- determine how much risk to take
answer questionaires, read a few books, or similar

Step 2- take the risk profile in #1 and express it in terms of %stocks and % bonds and % domestic and % foreign

Step 3 take the percentages in #2 and break them down
% large cap stocks
% small cap stocks
% mid cap stocks
% foreign large cap
% foreign emerging markets
% government bonds
% corporate bonds
% high yield bonds
% foreign bonds

then once you do #3, look at the fund list above

#4 Pick fund(s) which map to your allocation

If you do #4 without 1-3, you will question your decisions when things surprise you (like market dropping 50% in 2 weeks). You need to do a little due diligence so when market drops you do not sell at the bottom.

Go here for #1
Risk Profile Questionnaire

It might take you 10 minutes, took me about 2 minutes before I posted the link.

[financebanter]

Re: How Should I Allocate My 401k Savings?

It depends upon you, how much risk you can take. If you can, then go ahead.