Thoughts on how to allocate Fidelity 401k at my new employer? Stock investments shown here, blended fund and bonds shown in comments. I am 26 and was thinking to put 80% into 500 index and 20% into INTL index.

There is also a separate option to put it all into a target date fund, which would be easier but higher expense ratio.

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For me, my 401k is in the S&P 500 tracking all the way. Super cheap fees and great historical performance. I’ve experimented a little but s&p is the way to go for me. In 26 so bonds aren’t something I am even considering.

likehelpful

Same S&P 500 or total market index all day.

likehelpful

Why young people don't invest in mid / small cap blows my mind

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I do this!! Up 30% in the last year 🚀💎

I’m 27 and have the exact allocation as you OP. I’m planning to add bonds in my 401k when I near 40 and increase accordingly till retirement.

likehelpful

Do you want any smaller companies? If so the extended market index along with 500 gets you total market. I like some smaller exposure and would probably split your 80 sp500 to 60 sp 500 and 20 extended markets. Up to you if you want any fixed income.

helpful

As you are 26, you can be aggressive and take on more risks. Look into small cap funds for next 10 years at the least. Then, switch to S&P 500 funds gradually.

helpful

Blended fund and bond choices

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Thank you everyone! I decided to put the large majority in sp500 + extd market (mid cap). The rest went into international and small cap.

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