Is this bad 401k investing?

Question

40 % international funds, 25% large cap, 15% small cap, 15% long term growth
i am 25 so i have plenty of time.

i am paranoid.

Answer 1

In my opinion, yes. Here's why:
First, you're heavily invested in international funds. Sorry, but I think over the long-haul, the good ole U.S. of A. market will beat out any international market. Why? Because we have, by far, the most efficient market in the world and aren't subject to the political risks that other nations are subject to.
Next, you don't have enough in small-cap and mid-cap funds. Mid-caps have beaten large-caps over any 30 year period. Small-caps have beaten mid-caps over any 30 period. At your age, you won't be touching your 401(k) for over 30 years.
My recommendation for now: 35% small cap, 35% mid cap, 15% large cap, 15% international.
As you get older, you're going to want to shift those investments to large-cap funds, and then eventually fixed-income funds (bonds).

Answer 2

I like the mix. You are young and well managed international funds have been performing extremely well for the past 4 years.

I don't know why you would need to be paranoid. Monitor your portfolio every month or so and you can re-balance the mix at anytime based on current performance. The nice thing about managing this under the protection of a 401K is that you do not have to concern yourself with capital gains and taxes. Go for it!

Answer 3

I would tend to agree with Mike; way too much in international. Maybe 10-15%. The only thing I would add is to split your large and small cap funds between growth and value. Generally, they tend to move inversely, except when they're both doing well.

Answer 4

not if you don't touch it for a long time!