How to allocate 401k?

[feelxitxburn]

Hey Everyone,

I'm a new graduate and I'm now eligible to enroll in my 401k at work. I've read on numerous sources to invest in "Index" but I'm not sure what the best way is to break down the percentages. Can anyone assist me in setting up my 401K? There's so many options on here and I'm just completely lost on how to set up a secure future.

Thanks

CLASSIFICATION MUTUAL FUND NAME SYMBOL
International Equity Artisan International Inv ARTIX ____________%
International Equity First Eagle Global A SGENX ____________%
Aggressive Growth Janus Triton T JATTX ____________%
Mid Cap Equity Needham Growth NEEGX ____________%
Small Company Heartland Value Plus HRVIX ____________%
Small Company Royce Low Priced Stock Svc RYLPX ____________%
Mid Cap Equity First Eagle Fund of America Y FEAFX ____________%
Growth Jensen J JENSX ____________%
Value Janus Perkins Mid Cap Value T JMCVX ____________%
Value American Beacon Lg Cap Value Inv AAGPX ____________%
Growth & Income American Century Equity Income Inv TWEIX ____________%
Balanced Oakmark Equity & Income I OAKBX ____________%
Index Vanguard Total International Stock Index Signal VTSGX ____________%
Index Vanguard Small Cap Index Signal VSISX ____________%
Index Vanguard Mid-Cap Index Signal VMISX ____________%
Index Schwab S&P 500 Index SWPPX ____________%
Specialty - Long/Short American Indep Fusion Instl AFFSX ____________%
Specialty - Technology Allianz RCM Technology D DGTNX ____________%
Specialty - Health Care Schwab Health Care SWHFX ____________%
Specialty - Fin Services FBR Small Cap Financial Investor FBRSX ____________%
Specialty - Real Estate JPMorgan US Real Estate A SUSIX ____________%
Fixed Income - Corp PIMCO Total Return D PTTDX ____________%
Fixed Income - Corp Federated Short-Term Income Instl FSTIX ____________%
Fixed Income - Govt American Century Ginnie Mae Inv BGNMX ____________%
Fixed Income - Govt Sit US Government Securities SNGVX ____________%
Capital Preservation Schwab Investor Money Fund SWRXX ____________%
Capital Preservation Morley Stable Value Fund SIBTZ ____________%
CLASSIFICATION WESPAC MANAGED PORTFOLIOS CODE
Aggressive WP Aggressive Growth Portfolio R2 WAGTZ ____________%
Moderately Aggressive WP Growth Portfolio R2 WGGTZ ____________%
Balanced WP Balanced Portfolio R2 WABTZ ____________%
Moderate WP Moderate Portfolio R2 WAMTZ ____________%
Conservative WP Conservative Portfolio R2 WACTZ ____________%
TOTAL 100

[humandraydel]

I would recommend an 80-90% stock and 10-20% bond mix. Index funds usually have the lowest expense ratios, so I'd go with:

30% Index Schwab S&P 500
30% Index Vanguard Total International Stock Index Signal VTSGX
10% Index Vanguard Small Cap Index Signal VSISX
15% Index Vanguard Mid-Cap Index Signal VMISX
15% Fixed Income - Govt Sit US Government Securities SNGVX


That being said, the 0.8% expense ratio of that treasury fund is criminal. If at all possible, I'd suggest you open a Roth IRA and hold your bond portfolio in the Roth.

[snafu]

Although you didn't give your age, I'm assuming you are young, perhaps in your 20's. You have a long time to ride out the vagaries of the equity market so I would suggest starting with a low MER, Vanguard type index fund for two years. If you can, go to one or two free [promotional] 'dog & pony' shows put on by the large MFs like Fidelity. Kiplinger's Magazine is an easy read that offers terrific information.

I wouldn't go for Bond Funds at this point as you should be able to tolerate major risk. It's important to re-evaluate your holdings and the general economy [$16T debt] each year. I would likely split contributions in yr 3 to include a good International Fund. Sometimes you will need to 'hold your nose' and continue with your plan when the market dives. After 5 years you will need to re-assess and decide if you want to change your plan for market segments like large capitalization, sm. cap, and lots of other choices the Asia, BRIC, Euro, commodities etc. You will need to monitor costs to buy Treasuries, Bond Funds or CDs by value. As you get older you will need to reduce Equity percentages and move toward Income instruments.