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Greetings! I am a total newbie here, but hoping that someone might be able to shed some light on the decision for how to allocate 401k existing balances and future contributions. The fund manager thru my employer is T.Rowe Price and currently gives the following choices:

1. Equity Index Fund (S&P 500 Index)
2. Science & Tech. Fund (Lipper S&T Fund Index)
3. New Era Fund (Lipper Nat.Resource Fund Avg)
4. Int'l Stock Fund (Lipper Int'l Fund Avg)
5. New Income Fund (Lehman Bro. Agg. Bond Indx)
6. Equity Income Fund (Lipper Eq. Income Fund Avg)
7. Capital Appreciation Fund (Lipper Cap. App. Avg)
8. Prime Reserve Fund (90 Day Treas. Bills)

I am committed to the long term here, and the Sci/Tech fund shows the best return since inception (21.73% since 1987), second is the Equity Index fund at 17.43% since 1986, and third is the Equity Income Fund at 17.25% since 1985.

The above would indicate where to spread the $$ to gain the best return, but I am not convinced that Sci/Tech won't take a big hit at some point.

Also, I have read in other messages about people using self directed IRA's for rollover of 401k funds, in order to choose the investments that you want. Is that the way to go? Can you rollover funds into something like this if you are planning to stay with the same employer long term?

I know another consideration is the employer match. Currently there is no match for my position, but they are changing effective June 1 to a match program depending on the company's performance. If the company makes plan it will be 50% match of the current 4% salary cap. If it does better, it could be up to the full 4% match, if not, it could be 25% or less.

Any ideas would be appreciated!
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