How should I allocate my 401k?

Question

35 years to retirement. I consider my risk tolerance moderate to high. These are my 401k options:

SPECIALTY:

BlckRck Ntrl Res Tr

Davis Financial

DWS RREEF RE Sec

EatonVance WW HlthSc

Franklin Utilities

Htfd Global Tech HLS

INTERNATIONAL/GLOBAL:

AF EuroPacific Grth

MFS Intl New Disc

Oppenheimer Dev Mkts

Oppenheimer IntlGr

Templeton Foreign

Thornburg Intl Value

SMALL CAP:

AIM Small Cap Growth

Legg Mason Prt SC Va

MID CAP:

AmCent Vista

BlackRock Aurora

LARGE CAP:

AF Growth Fund Amer

Calvert Social InvEq

Columbia Strat Invst

Htfd Div & Grwth HLS

Legg Mason Prt AggGr

Lord Abbett Affl

Oppen Main St Opp

Thornburg Value

ASSET ALLOCATED/BALANCED:

AF Income Fund Amer

Evergreen Asst Alloc

Franklin Income

BOND:

EatonVance IncFndBos

Htfd TotRet Bond HLS

PIMCO Emerg Mkts Bnd

PIMCO Total Return

STBLE VAL/MONEY MRKT:

SEI Stable Asset

I've temporarily had it at 80% BlckRck Ntrl Res/20% SEI Stable Asset but need to better diversify

thanks!

Answer 1

I would go with the following

10% Bond

15% Thornburg Value

15% Thornburg International Value

20% AIM Small Cap Growth

20% Oppenheimer Developing Markets

20% Oppenheimer  International Growth

This portfolio does have quite a bit of foreign exposure (55%), but that is where the return is long term.

You can always change future distributions to go into cash or another position that is not as risky as you get older.

Good Luck!