How should I allocate my 401k?

[rk578]

Hi I am a 31 yr old who doesn't know very much about 401k and I am not sure how I should go about allocating my funds, I went with what the person who enrolled me at work suggested but I am not sure if it is the best way to allocate my money any advice would be helpful, below is my potions and allocations. Thanks.


Cash Eq Transamerica Stable Value Option 2%
Bond PIMCO Total Return Ret Opt 0%
Bond Loomis Sayles Bond Ret Opt 14%
High Yield Bond Transamerica Partners High Yield Bond Ret Opt
15%
Hybrid Transamerica Balanced Ret Opt 5%
Hybrid Vanguard Target Retirement 2005 Ret Opt
0%
Hybrid Vanguard Target Retirement 2010 Ret Opt
0%
Hybrid Vanguard Target Retirement 2015 Ret Opt
0%
Hybrid Vanguard Target Retirement 2020 Ret Opt
0%
Hybrid Vanguard Target Retirement 2025 Ret Opt
0%
Hybrid Vanguard Target Retirement 2030 Ret Opt
0%
Hybrid Vanguard Target Retirement 2035 Ret Opt
0%
Hybrid Vanguard Target Retirement 2040 Ret Opt
0%
Hybrid Vanguard Target Retirement 2045 Ret Opt
0%
Hybrid Vanguard Target Retirement 2050 Ret Opt
0%
Large/Mid Value Equity American Funds Fundamental Investors Inv Opt 10%
Large/Mid Value Equity Fidelity Advisor Equity Income Inv Opt
10%
Large/Mid Blend Equity Mutual Shares Inv Opt
9%
Large/Mid Blend Equity Transamerica Equity Index Ret Opt
5%
Large/Mid Growth Equity Janus Capital Appreciation Ret Opt
10%
Large/Mid Growth Equity Transamerica Equity Ret Opt
5%
Large/Mid Growth Equity Transamerica Growth Opportunities Ret Opt
5%
Small Company Equity Federated MDT Small Cap Blend Ret Opt
0%
Small Company Equity Neuberger Berman Genesis Ret Opt
0%
Global Equity Oppenheimer Global Ret Opt
10%
International Equity Janus Adviser International Growth Ret Opt
0%

[disneysteve]

Vanguard Target Retirement 2045

Do you want the simple no-nonsense answer? Put 100% into the 2045 fund and you're all set.

[Broken Arrow]

Interesting. What is Hybrid Vanguard Target Retirement fund? And how is that different from regular Target Retirement fund?

But basically, what Steve said.

[jIM_Ohio]

You have the short answers already

I will direct you to 2 threads I started, if you have questions about them, post them here.

Start retirement planning here, before you pick any mutual funds

http://www.savingadvice.com/forums/investing-banking/50669-questionaire-people-starting-retirement-planning.html

Once you know some of the basics, look here to learn about risks.

http://www.savingadvice.com/forums/investing-banking/50734-investment-risk-questionaire.html

Bottom line- before you invest in something, you need to see retirement planning as an important part of your finances month to month and year to year. There are tax implications in a 401k, and its possible the above advice could have you lose (or gain) 50% of the money you put in in 2010.

If you want to know what those risks are, it is up to you to learn more about investing.

[LMA]

Jim has it right, don't have someone else tell you what to do but choose it yourself. In order to do that you need to educate yourself. I know that stuff is like a root canal to some people but it is important.

You can also call up Vanguard and ask them what is the difference between those funds and how they work. It's their job to answer your questions. Basically the difference between those retirement funds is what percentage they invest in stocks vs. bonds and how they shift that percentage as time goes by and you near your target date.

However I would suggest you figure out what "retirement" is and/or what are you saving for. Because I have no desire to retire that was a factor when I was choosing where to invest my 401k money.

Bottom line: educate yourself first, set goals, make a plan.