Two words "equity income". If you had to choose one mutual fund in your 401k, my suggestion would be either a retirment date fund or an "equity income" fund.

I own T Rowe Price Equity Income (PRFDX) in my Roth IRA and Vanguard Windsor II (VWNFX) in my 401k. My wife has ACGIX in her 401k. All 3 are equity income (large cap value) mutual funds.

Large Cap Value tends to have best returns over time, and is why I make that suggestion.

I believe in assett allocation to reduce risk. As a 34 yo (wife is 33) our target allocation is:

45% domestic large cap
15% domestic mid cap
15% domestic small cap
15% International Large Cap
10% International small cap

This allocation is 75% domestic, 25% international. It is 100% equity "in theory".

For my Roth IRA, I own:

PRFDX (domestic large cap)
PRWCX (domestic mid/large cap value)
RPMGX (domestic Mid Cap)
PRNHX (domestic small cap)
PRIDX (International small cap)
PREDX (junk bonds, emerging market bonds)

My wife's Roth IRA will be

TRIGX (International Large Cap)

as you might see, I prefer T Rowe Price. Low cost funds (all no load), excellent customer service, and offerings in every asset class.

In my 401k, I own:
VFINX (Vanguard 500 index) 20% large cap
VWNFX (Vanguard Windsor II) 25% large cap
VEXMX (Vanguard Explorer) 10% small cap
VEXPX (Vanguard Extended Market Index) 10% mid/small cap
RYTFX 14.30 +0.11 (Royce Total Return) 10% small/micro cap
VTRIX (Vanguard International Value) 25%


In my wife's 401k, we own:

REREX International Large Cap 25%
RGAEX Domestic Large Cap 20%
ACGIX Domestic Large Cap 25%
SSVSX Domestic Mid Cap 20%

we also own 10% company stock in her 401k.

We duplicate allocations, with IRS's being the "core". As we change jobs, we don't have to repick funds, just pick the best 401k funds to meet part of this allocation. If in doubt, we overweight large cap value (if no better 401k choices exist).

I contribute 10% to 401k (increases 1% each year automatically)
Wife contributes 6% to her 401k.
I max out my Roth (4k each year)
2007 will be first year my wife has a Roth IRA.