401k Choices

[stuper1]

The good news about my 401k choices is that I seem to have three good stock index choices.  One is a S&P500 index with an ER of 0.053%.  The second is a small- to mid-cap index with an ER of 0.07%.  The third is an international equity index with an ER of 0.154%.

I'm thinking of using all three of these in the proportion 3:1:1.  This is based on reading posts here that recommend say 20% in the US total market and 5% in the foreign market.  I believe the US total market is about 75% large cap and 25% small- to mid-cap.

Does this seem like a good allocation?  Or should I just put it all in the S&P500 index?  Thanks!

[rhymenocerous]

It comes down to personal preference I think.  I don't like to have small 5% slices, so I just put everything in the S&P500 fund.  I also like the simplicity of just a single fund.  Also, remember with the international fund that there is an element of currency risk.  Gold is your currency diversification in the PP.  A few months ago, when there were problems with the Euro, I remember the international fund being more deeply affected than the S&P500.  I was thinking to myself, why should this affect me?

So here are your options, all of which I think are acceptable:

1. 25% S&P500
2. 20% S&P500; 5% Smallcap
3. 15% S&P500; 5% Smallcap; 5% Intl

[melveyr]

Slicing and dicing gets a ton of attention on Bogleheads, but in the grand scheme of things it is pretty hard to forecast what will be best and IMO it usually won't make a material difference. I would just do whatever makes the most sense to you and try to stick with it. It won't be nearly as important as what ratios you hold other asset classes  in your portfolio such as gold/bonds.