[Sniper]

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wow, there has been a lot of excellent advice here. A big thanks to everyone, it is much appreciated.

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20% US Total Stock Market Index
20% US Large Cap Value Index*
10% US Small Cap Index*
10% US Small Cap Value Index*
10% REIT Index
10% European Index
10% Asia/Pacific Index
10% Emerging Markets Index*


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Something like this looks great. One question though, if my only concern is expected value and not risk couldn't I only invest in the ones that have a higher rate of return than the S&P?

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You mean "had" a higher rate of return? That is not the same as "have" or more importantly "will have." That's the rub.

eastbay

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As Eastbay said, past performance does not necessarily mean the future will look the same... the reason for diversification is to reduce the variance.

That said, if you want to assume a higher risk level, you can do that by changing the % allocations (and the fund types)! Which is exactly the high-level thinking that primarily passive investors should be doing on a periodic basis.