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Old 07-25-2007, 01:18 PM
Daniel Magix Daniel Magix is offline
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Join Date: Feb 2006
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Default Should I diversify and/or add to my 401k?

I was recently looking over my fund choices in my 401k, and I was wondering if I should diversify my portfolio more. I was also wondering if I should put more into the 401k, or if I am ok where I am at...

Here is a brief financial situation description, if it helps:
30 years old, married, 2 young kids.
Own a home, both my vehicles and student loan are paid off, no real debt other than 3k on a 0% rewards card. I have maybe $5k or so available through a variety cds, stocks, savings accounts, etc.

Here are the fund choices in my account...

Fidelity Advisor Balanced T (FAIGX) - $17.72
Fidelity Advisor Dividend Growth T (FDGTX) - $14.20
Fidelity Advisor Equity Growth T (FAEGX) - $59.16
Fidelity Advisor Equity Income T (FEIRX) - $31.88
Fidelity Advisor Government Income T (FVITX) - $9.95
Fidelity Advisor Growth Opportunities T (FAGOX) - $39.35
Fidelity Advisor Intermediate Bond T (FTBRX) - $10.67
Fidelity Advisor Mid Cap Ii T (FITIX) - $18.34
Fidelity Advisor Overseas T (FAERX) - $25.48
Fidelity Advisor Small Cap T (FSCTX) - $24.84
Fidelity Advisor Strategic Income T (FSIAX) - $11.58
Fidelity Prime Fund; Daily Money Class (FDAXX) - $1.00

Right now, I put in 4% (which is the max that my company will match), and I have it split 50/50 between Fidelity Advisor Growth Opportunities and Fidelity Advisor Small Cap. I believe these are the two most aggressive funds of all my options. I have had these funds for a year, since I started at my current job. I chose the more aggressive funds, because I am relatively young and thought I could ride out the potential volatility of the funds.

But now I am just wondering if I should diversify a bit. Maybe choose a lower yield, steadier earning fund? Or maybe my aggressive fund options are still ok? Just wanted some opinions.

And what about the amount I am putting into it? Should I hold off on adding more, and concentrate on building a bigger liquid savings than my meager $5k? I think maxing the 401k up to the company match is pretty standard, right?
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