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Employer plan has the following options:

Large cap equity index fund
Small cap index
International index

What is a good allocation for the old balance and new contributions with a projected retirement in 15 or more years? At this point, growing the balance is the goal and I'm not interested in a bond percentage. The allocation will be revisited periodically but infrequently, and I can always take a "safer" approach later. My dreams won't be crushed if I have to work longer.

We will be funneling a larger share of new contributions to Roths (VTI,FZROX for starters), but as of now, almost all of our retirement balance is in the employer plans. Let's keep it simple but very aggressive. Personally I expect a not great US market over the next 2-5 years, but I'm optimistic long term and plan to buy the sale prices at regular intervals. Pretend you are 28 years old. What percentage would you choose for each of the three funds, and why?


Let's not take ourselves overly seriously. I am aware that I'm an idiot wrt investing. Just looking for the next starting point. Hence the choices and the "Simple Path" type selections. Thanks all.
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No. of Recommendations: 3
If you're asking this question I would say that by definition you are not an idiot. If you're looking for an allocation that you'll keep for the long term I would match the market's allocation. According to Vanguard's Portfolio Analysis Tool the current US market split is 71/21/8.

You mention wanting to be aggressive. To me this would mean under-weighting Large Cap and Over-weighting Mid Cap because I believe there is higher growth potential there right now with the huge run that Large Caps have enjoyed. I would not over-weight Small Caps because I believe that a lot of Small Caps are zombie companies that will not survive once extraordinary support ends. Taking an aggressive approach you may want to adjust your portfolio balance as conditions change.

You don't mention International. I think the potential for International growth is strong and I think that it is a mistake to entirely leave International out of your portfolio. Vanguard has been recommending about 30% International.

I think that you can progress much further in your investing journey by focusing on choosing good individual stocks for the portion of the portfolio that you can control than by trying to micromanage your 401k. I think of the 401k as a safety net that allows me to take appropriate risks with my individual stock selections. I just use a target retirement fund in my 401k and don't even look at it.

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We're in the same boat. We have cash/pension lumps that are locked down in bonds. So I adjust my position based on market and small/mid caps were crushing it since winter. So we had 15% international/45% small-mid and 40% large cap. I just adjusted to 10/40/50 since our international ETFs avg 6% in 10 years. I don't do any bonds. If you want to be aggressive, you could pick a target date fund for when you want to retire and add 10 years to give you more stock exposure. I'm not a fan of target date funds since many are heavy in bonds too early in my opinion.
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