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I have been trying to decide what funds I should put my 401K money into. I have had this account for a few years now and was spreading the money out in several funds. As I read more about mutual funds I realised the effect of the expense ratio and the fact that the returns I saw advertised were usually before expenses.

I have since elected to have all new money go to a fund that claims to track the S&P 500 (again before fees and expenses!) - Indexed Equity (see below). But I am still not sure that is the right decision.

Can someone suggest what I should do? The following are the choices provided by the 401K plan:

Guaranteed return 6.25% (This rate is modified periodically)
Core Bond Fund (MCBDX) (0.59%) (6.9%)
Balanced (MBLDX) (0.59%) (-6.77%)
Indexed Equity (MMIEX) (0.42%) (-13.01)
Spectrum Growth (PRSGX) (1.08%) (-9.83%)
Contrafund (FCNTX) (1.12%) (-14.81%)
Growth & Income (MIGYX) (0.66%) (-11.8%)
Ultra (TWCUX) (1.24%) (-16.62%)
Small Cap Value (MSCDX) (0.68%) (-0.22%)
International Equity (MIEDX) (1.07%) (-23.19%)

The number in brackets is the expense ratio followed by YTD return. I am tempted to move everything into the guaranteed fund with a current return of 6.25%. Is that a good idea for the long term?

What other mix, if any, would you suggest?

My second question is: Is it a good idea to transfer money now while the value is so low? Is that not like buying high and selling low?

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