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I've been searching for articles or postings that can help me with this--but haven't found any.

I'm trying to decide if I should redirect my future 401(k) contributions to something other than an S&P 500 Index fund...I'm concerned that I may not be "diversified" enough, but whenever I read about other mutual funds (my 401(k) has a hefty list of options), I'm not sure that "diversification" into med-cap funds, bond funds, international funds, or even small cap funds makes sense, given expense ratios, etc. (All the reasons I went to an index fund in the first place.) However, the 401(k) does offer some other Index funds (Russell 2000, S&P mid-cap 400 Index, MSCI Europe, Australia and Far East Index, and Bond Index and a "split" 60% S&P 500 and 40% LB Aggregate Bond Index).

Here's my situation:

I'm about 7 years away (possibly as much as 10 years) from retirement. I am trying to put away the max ($11,000) per year in my 401(k). Currently, my retirement accounts (rollover IRAs, 401(k)) are all in the S&P index fund, totalling $117,448. I have about $8,000 in some individual stock picks (Walmart, Microsoft, EBay--companies I've researched on the Fool) in a Roth IRA, and will also try to maximize my Roth each year by continuing to pick individual stocks (it's fun for me). I have $15,000 in a no-load, tax free Bond Mutual Fund from a way back, and about $40,000 in cash that I need to keep at that level for a while because my husband is currently out of work due to heart surgery, daughter going to college in a year--etc.

So, are there any resources around on Fool or from your experience that would suggest I should change my future 401(k) contributions in some way? Otherwise, I'd continue to contribute to the S&P 500 Index for another 3-4 years before reassessing again.

Your help would be greatly appreciated!
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