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This one's pretty long, but I wanted to include as much as I could........

I have been trying to come up with a good investment strategy for my 401K plan here at work. I'm currently 27 years old and I've been trying to figure out what to invest in. Currently, I have 90% of my contributions going into an equity index fund and 10% going into a balanced bond fund. I was planning on increasing the contribution to the bond fund by 5% thus decreasing what's going into the equity index fund by 5% every two years starting when I'm 30, that way I'll be at 50/50 by the time I'm half way to my retirement age of 59 1/2. I was going to continue to increase the bond contribution and decrease the equity index contribution until I'm near retirement, at that time I'd be at 10% equity index and 90% balanced bonds.

I figured this strategy would give me the risk [and hopefully higer return] in the beginning and increasingly get more and more conservative towards my retirement age of 59 1/2.

Okay, here's my question, this all sounded good to me until I found fool.com. Most of what I've read here on this website pretty much says to go with 100% equity index, but it really doesn't say for how long. My main concern with this is the risk that it entails as I get closer to my retirement age. I wouldn't want to see a downturn like we've had this past year or so when I'm say 55 years old. It may be devistating to my 401K contributions if they're invested 100% into stocks.

I'd like to know, what do all of you think of my plan outlined above, am I getting too conservative too early?? Should I stay with 100% equity index longer and then maybe go more conservative when I'm say 20? 15? 10? 5? years from my retirement goal?? I guess I'm asking a real tough question here. I'm not a math wiz, but I'd like to know if I'm robbing myself of higher risk, higher return years in stocks. I'd like to stay in the higher risk, higher return category as long as I can, but I don't want to over do it. All input would be greatly appreciated. And let me know where your contributions are going in your 401K. Thanks much for reading my book :)
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