No. of Recommendations: 0
Hey all--

Here's my situation. I'm 29 years old (and can therefore afford to be fairly aggressive), have a second job at a Gateway Country Store (they're extremely generous to their part-timers, btw), and will soon be eligible for their 401(k). They match 50% of your first 6% deducted--and of course no Fool would pass up an instant 50% return! I have about $10k in savings, split about 40/60 between a Roth and standard discount brokerage account.

Here's the quandary--they offer a whopping 7 mutual funds, in addition to the prerequisite GTW stock. The mutual funds are of course a load of crap. But, should I diversify anyway, so all my 401(k) won't be wholly invested in one stock? Or would it probably safe to just look at things from a wider perspective and rely on my other investments for diversification?

I have a feeling I know the answer, perhaps I'm just looking for reassurance that it's okay to go whole hog into GTW. Besides, that 6% withholding will only amount to about $1,000 a month.

For some detail, I used BigCharts to find the best of the 7 mutuals, and compared them with GTW and the S&P500. Since the mutual data only goes back 5 years, here's the tally after that point:

Gateway (GTW): up a tad over 1000%!
S%P 500: up about 175%
xx Growth Balanced Fund: up about 75%
yy Ultra Investors: up about 70%
zz Equity Growth Fund: young, up ca. 30% after <2yrs

*Names of funds have been withheld to protect the underperforming louts that call themselves fund managers.

Thanks for the input!

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