How should I invest in my Fidelity 401(k)? Which funds and what percentage of my contribution?

Question

I am 26 and have a sizable 401(k) that I'm rolling over. Considering the changes in the domestic and world economy, I thought maybe I should change my investments. Thoughts?

Right now, my investments are like this:

64% of my investment is divided among 3 funds invested in large domestic US companies.

19% is divided among 3 funds invested in small/medium domestic US companies.

17% is invested in 1 fund invested in international/global companies. The fund is American Funds Europacific.

Should I rebalance?

Answer 1

The real question is should you be taking financial advice from complete strangers on the internet?

But ok.  So the question of "should" you rebalance is all in a matter of preference and taste for risk.  You're young, so you

have plenty of time in front of you.  Your current allocation appears to be relatively low-risk, for stocks.  You could stay as you are and be totally fine.  Or if you want more risk and you think the markets will turn back up, you could shift more into the small caps.  As for international, you probably already have a ton of exposure to it without even knowing it.  Many large cap companies do business overseas, for example.  

There is a neat tool on http://www.morningstar.com that allows you to put in all your funds and see what your total holdings really look like by country, by sector etc.  It really helps to see the overlap and your true exposure.  It is called the X-ray and you can find it here: http://portfolio.morningstar.com/NewPort...

Go put your portfolio in, and look at the results.  You might be surprised.

Answer 2

You should be asking this question of Fideltiy since they know their products best and have been hired to handle your 401K

Without having more information about your personal information, such as age, current income and other data including risk tolerance, martial status, and demographics it would be very inappropriate for me or any other experience person to provide specific information in this type of media.

Any one that answers this question with definitive suggestions is not doing what is best for you nor are they providing any true service for you, and if you take specific advice from a total stranger, you are a fool

You can learn more about mutual fund investing by visiting

http://moneycentral.msn.com/home.asp, under investing they have a whole section about mutual funds

www.morningstar.com/ this is company that was founded to research mutual funs

good luck and don't do anything foolish

Answer 3

You should read a couple of books, like;

Mutual funds For Dummies

Retirement Investing For Dummies(401K?)

That will help you with developing an "asset allocation" that suits you!  In addition pay the $160 for Morningstar's  premium service.  Just using the "star" system will get you in trouble.

I'm 59 and my "asset allocation" is somewhat different than yours...... I have about 27% of my portfolio in International Funds (The American Funds EuroPacific is a great fund... also check out the Dodge & Cox International Fund, also highly rated... and no sales charge).  I have my small cap & mid cap at about 25%..... very small weighting in "small caps".   My large cap is carefully split between "Growth" funds and "Value" funds.  About 15% is in cash and bonds.

Design your own "asset allocation" after reading the books. That way it will meet with your risk tolorence.

Answer 4

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