401K Question

[BigMoney74]

Is it a bad idea to spread the allocation % across every Investment Election? For example mine looks something like this:

SSgA Govt Money Market Fund - 2%
SSgA Stable Value Fund - 25%
Fidelity Advisor Equity Income Fund-Class T- 5%
American Century Income & Growth Fund- 2%
SSgA S&P 500 Index Fund- 10%
T.Rowe Price Mid-Cap Growth Fund-R Class 20%
RS Value Fund- 10%
DWS Mid Cap Growth Fund Class A- 3%
"
"
And so on.....ranging from 2-25% accross every option.
Also, I am investing 15% of my income so I should try and get it right. Any help would be great

[tonybormin]

[ QUOTE ]
Is it a bad idea to spread the allocation % across every Investment Election?

[/ QUOTE ]

Short Answer: Yes

Long Answer: Depends on your age, risk tolerance, goals, income, etc.

Why double up in specific areas? For example why buy multiple funds of Mid-Cap Growth and pay the double fees for practically the same return?

What is your line of thinking for choosing that many funds?

[Sniper]

Can you explain WHY you chose that allocation?

[Karmic]

[ QUOTE ]
Why double up in specific areas? For example why buy multiple funds of Mid-Cap Growth and pay the double fees for practically the same return?


[/ QUOTE ]

What double fees?

This is not necessarily a bad approach, it is exactly what the "lifestyle" funds do, they invest in 30-40 different funds with 2-10% in each fund. The only real negative I see is you're going to be tempted to actively manage your funds to try and get better returns, don't.

For a 401k in particular it is generally best to choose a few diverse funds, depending on the factors listed above, and rebalance it once or twice a year.

[BigMoney74]

[ QUOTE ]
[ QUOTE ]
Is it a bad idea to spread the allocation % across every Investment Election?

[/ QUOTE ]

Short Answer: Yes

Long Answer: Depends on your age, risk tolerance, goals, income, etc.

Why double up in specific areas? For example why buy multiple funds of Mid-Cap Growth and pay the double fees for practically the same return?

What is your line of thinking for choosing that many funds?

[/ QUOTE ]

I'm 32 with an income of $120K per year. I guess I would consider my risk tolerance to be low to moderate for now. My goal is to save/invest 15% of my income for the remainder of my career. My line of thinking for allocating this way is simply one of ingnorance. I guess I just wanted to throw a cast net and see what kind of returns I got and then re-allocate.