<<If it were my money (but of course, it's not), I'd invest
every penny that I don't expect to need within the next
5-10 years in stocks. For a 28-year-old in a 401(k) plan,
of course, that's all of it. Over that period of time, I
expect with very high confidence that stocks will
outperform all other investments. Since (by hypothesis) I
can afford to ride out the inevitable volatility, I want
all my money going for the best possible long-term returns.
Over shorter periods of time, my confidence level is not so
high; therefore, money that I will need sooner (whether 2%,
28%, or 100% of my holdings) goes into less volatile
investments -- primarily double tax-free money markets.

By the way, I suspect this is an unnecessarily conservative
treatment of my medium-term (1-5 years) money. Does anyone
have better ideas? >>

I wish I was 28 with a chance to invest 100% of my 401(k) into stocks. Lets see, I would be $11,983,195 over my original investments.

The sooner you start the better off you are.

Phil