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Subject:  Re: choose funds for 401k - help needed Date:  12/10/2005  2:12 AM
Author:  Lubbockdave Number:  13557 of 18062

If it were me at 30 years old wanting to be aggressive I'd go with the mid cap index fund, the small cap index fund, 30% each. Then I'd go 15% in the Vanguard healthcare fund, 15% in the cheapest (as far as fees are concerned) large cap index fund or the total market index fund and the remaining 10% in the best performing international index fund with the best 5 to 10 year track record. This plan would require you to do a little research comparing the international offerings...and if none of those offered appealed to you then simply pick another sector fund or distribute the remaining 10% into what you liked the best-for me it just might go 5% into the vanguard healthcare and 5% into my total market/large cap index fund.

As young as you are I'd stay away from any of the bond offerings. If you wanted to simplify, simply go with the Target retirement fund that is farthest away from this year-If one is target 2045, and another is Target 2065-the more aggressive approach would be the target 65. You would just have to re-assess your risk tolerance every 5 years or so to make sure you were assuming the level of aggressiveness you were seeking-of course the closer you get to retrement the less risk you probably want to assume, but that is a personal thing. The idea behind these "Target date" funds is that they adjust over time to be less aggressive as you get to retirement age. For me they start out a little too concervative though, and I like taking a more active role in what my furture will be-for better or worse!

Also, I'd be fairly generous with my contributions-hoping to put at least 12 to 15% of my income into the plan.

This is what I'd do if it were me, so your mileage may vary...

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