401k Allocation Advice

[cdub21]

Hello. I am 23 and putting 15% into my 401k with a company match of 3%. I am struggling with how to allocate my percentages into the below listed investments. I want to go with high risk since I am young, but I also do not want make this choice without getting some advice. I'd appreciate any and all advice. Thank you.

Investments 1 YR 3 YR 5 YR 10 YR Life As of Date

Stock Investments
Large Cap
ABF LG CAP VAL INST
Inception Date 07/17/1987 3.44 12.88 -2.12 4.85 8.43 11/30/2011
CALAMOS GROWTH A
Inception Date 09/04/1990 0.42 20.72 1.01 5.50 13.36 11/30/2011
EATON LG CAP VALUE A
Inception Date 09/23/1931 1.08 6.99 -2.39 3.69 8.97 11/30/2011
FID CAPITAL APPREC
Inception Date 11/26/1986 -2.67 16.25 -0.02 4.80 9.80 12/31/2011
FID CONTRAFUND
Inception Date 05/17/1967 -0.12 14.70 2.58 6.96 12.06 12/31/2011
FID EQUITY INC II
Inception Date 08/21/1990 -2.75 11.38 -2.96 2.35 9.45 12/31/2011
SPTN 500 INDEX INV
Inception Date 02/17/1988 2.03 14.07 -0.30 2.84 9.06 12/31/2011
Mid-Cap
JPM MIDCAP VALUE IS
Inception Date 11/13/1997 7.51 18.52 1.91 9.18 11.92 11/30/2011
VICTORY SPL VALUE A
Inception Date 12/03/1993 -3.69 13.96 -1.56 6.32 8.30 11/30/2011
Small Cap
ABF SM CAP VAL INV
Inception Date 03/01/1999 2.71 19.58 0.43 8.59 9.94 11/30/2011
FID SMALL CAP STOCK
Inception Date 03/12/1998 -15.60 19.07 0.75 5.85 7.39 12/31/2011
TRP SMALL-CAP VALUE
Inception Date 06/30/1988 6.48 17.80 2.36 9.72 11.45 11/30/2011
International
FID DIVERSIFD INTL
Inception Date 12/27/1991 -13.78 7.60 -4.55 5.79 7.95 12/31/2011
Blended Fund Investments*
Large Cap
FID FREEDOM 2040
Inception Date 09/06/2000 -4.63 12.90 -0.76 3.40 0.56 12/31/2011

FID FREEDOM 2010
Inception Date 10/17/1996 -0.28 11.59 2.20 4.22 6.33 12/31/2011
FID FREEDOM 2020
Inception Date 10/17/1996 -1.36 12.81 1.13 4.15 6.29 12/31/2011
FID FREEDOM 2030
Inception Date 10/17/1996 -3.15 12.98 -0.12 3.66 5.81 12/31/2011
FID FREEDOM 2050
Inception Date 06/01/2006 -5.57 12.85 -1.29 N/A 0.38 12/31/2011
FID FREEDOM INCOME
Inception Date 10/17/1996 2.02 8.44 3.27 3.73 5.02 12/31/2011
Bond Investments
Stable Value
FID MGD INC PORT
Inception Date 09/07/1989 1.34 1.43 2.47 3.38 4.99 12/31/2011
Income
PIMCO TOT RETURN ADM
Inception Date 09/08/1994 1.58 9.34 7.27 6.30 7.24 11/30/2011

[Mr Nice Guy]

Congratulations on saving 15% at your age. That is great. Remember, this is retirement money only. Unless someone's health is in well being I would say don't touch the money.

You should be invested in mostly stocks, and maybe some bonds in your 401k.

Do you know the difference between stocks and bonds, in terms of risk, reward, and what they are made of?

[cdub21]

I know the differences in terms of risk, but what I do not know is what specific ones are best. I have been split between doing max risk of 80/20 for large cap stock and international stock. I just do not know if these are logical areas to go with. When I look at the breakdown for each of the investment options I listed it is hard to determine what ones to choose. Some have a high life return, some have high short term return. I know that I should be adjusting regularly wit my 401k to ensure max gains, but my initial starting point is confusion.

[Mr Nice Guy]

At your age, I would recommend taking on a good bit of risk, which would be stocks.
I would have something like this(but dont take my word, do your own due dilligence):

25%- Small Cap, International or emerging markets fund(s)
50%-Large Cap blue chip american stocks
25%- Bond fund (for stability.....just in case)



What you need to do is a find a fund that fits the asset class you are looking for, and check its record, as in the annual percentage return. I would like to see a fund with at least a ten year record, as well as solid management. You can see who manages the fund, and how long they have been there. If the fund has performed well for the last ten years, and the fund manager has been with the fund for the last ten years, theres a good chance the manager is good.

[Petunia 100]

Congrats on getting started young. I recommend you do some reading on asset allocation. One great place is Morningstar's Investing Classroom.

Investment Education, Investing 101, Investment Basics, Investment Classroom, Learn to Invest | Morningstar

Personally, I feel that simple portfolios are best. You might do something like:

25% US Large
25% US Small
25% International
25% Bonds

Easy to track and rebalance.

When you choose the individual funds, you want to look at costs as well as past performance. Morningstar has determined that the best predictor of future returns is cost.

The Best Predictor of Future Fund Performance - CBS News

The Fidelity Freedom funds aren't a bad option either.