401k: What types of investments to make?

Question

Based on my age (25) I figured I'd want a moderate-aggressive mix of stocks (50% Large Cap, 20% International, 20% Small Cap, 10% Bonds).

The question is: How do I choose between different Large Cap stocks? (or Small Cap, etc..)

Or should I just trust Fidelity and put it all in one of their FID Freedom 2045 blended fund investments?

Thanks!

Extra info, here are my options:
Blended Fund Investments -- FID FREEDOM 2000 (through 2050)
Bond Investments Income FID CAPITAL & INCOME %
Bond Investments Income FIDELITY GOVT INCOME %
Bond Investments Income PIMCO TOT RETURN ADM %
Short Term Investments -- FIDELITY RETIRE MMKT %
Stock Investments Large Cap ALLNZ NFJ DIV VAL AD %
Stock Investments Large Cap FID FIDELITY %
Stock Investments Large Cap FID GROWTH DISCOVERY %
Stock Investments Large Cap SPARTAN US EQ INDEX %
Stock Investments Mid-Cap MSIF MID CAP GRTH P %
Stock Investments Mid-Cap RVS MID CAP VALUE R4 %
Stock Investments Mid-Cap SPTN EXTND MKT INDEX %
Stock Investments Small Cap ALLNZ NFJ SMCPVAL AD %
Stock Investments Small Cap FID SMALL CAP GROWTH
view restriction(s) %
Stock Investments International FID INTL DISCOVERY
view restriction(s) %
Stock Investments International FIDELITY EMERG MRKTS
view restriction(s) %
Stock Investments International SPARTAN INTL INDEX
view restriction(s)

Answer 1

I would give some advice, but a financial advisor would be able to tell you what percentage to put where based on your situation. Good luck.

Answer 2

In terms of International, because you are so young I would advise investing in Emerging Markets (FIDELITY EMERG MRKTS) - 20% of your portfolio. In the short term this may be more volatile than other options but in the long term the growth expected from emergin markets is far greater.



However, based on your other criteria the selection should be pretty straigh forward: 50% SPARTAN US EQ INDEX, 20% FID SMALL CAP GROWTH, and 10% IMCO TOT RETURN ADM - though you may want to check the FIDELITY GOVT INCOME% if you want the ultimate safe investment... but again you are 25 - so you can be a bit more adventerous.

Answer 3

You can't go wrong with a 75% equity, 25% bonds strategy. Trying to select which would be best is going to be difficult. Everyone has their opinions and if you go to 10 different financial advisers, I promise you'll get some very different answers. Large cap and blue chip stocks usually provide more steady growth without the risks that international, emerging market, and small cap funds. Make an educated and stick with your strategy. It's easy to say what you could've done after the fact. Seek moderate 7%-9% returns and you'll be doubling your money at least every 10 years.

Answer 4

Not a bad group of funds to select from. You allocation is at least 10% light fixed income (my opinion). But this is your portfolio & you have to be happy with it.

40% Fidelity fund or Fidelity spartan equity index

20% alianz small cap value

20% fidelity intl discovery or spartan international

20% pimco ttl return