Need help choosing 401k investment options?

I disagree with Judy. Depending on your risk tolerance, with 40+ years of investing in front of you, you have plenty of time to recover if the markets "tank" "next year." Since this not living money, you don't need it "next year" (the time period Judy mentioned) it should be "in the market, especially if the market drops, as the best time to buy stocks is while they are "on sale."

As to the choices - you didn't tell if you know anything about investing or not (I assume not since you are asking for help). If not, a Target retirement fund type (as the Freedom 2050 is) is usually a good choice because it covers the entire world of investing, both domestic and internationally. But this fund, does not have a good Morningstar rating although a 52% one year return (as reported on msn.com) is nothing to ignore. So I suggest you choose that one for 100% of your investment (I includes a stable value fund and a bond fund.) as a START. Once you learn about investing, and can tell when a good fund is about to go bad, you can adjust your investments to other (both within this 401K and in IRAs), individual funds to cover large cap US, small cap US, large cap foreign, small cap foreign, sectors, bonds, etc. in an allocation you can sleep soundly with.

people this is a 401k we are talking about here. This is the one area YOU MUST PLAY IT SAFE! Therefore the safest will be the 2050 target fund because it has built in adjustments from aggressive down to preserving wealth as 2050 gets closer. Only two other options I would even seriously consider is the S&P and the High Yield bond. But the 2050 is a must have period. I like the idea of matching as well plus this is pre taxed so it will help you come income tax time as well. Get no more than three but all you need is the 2050 go with that.

people this is a 401k we are talking about here. This is the one area YOU MUST PLAY IT SAFE! Therefore the safest will be the 2050 target fund because it has built in adjustments from aggressive down to preserving wealth as 2050 gets closer. Only two other options I would even seriously consider is the S&P and the High Yield bond. But the 2050 is a must have period. I like the idea of matching as well plus this is pre taxed so it will help you come income tax time as well. Get no more than three but all you need is the 2050 go with that.

You still have 40 years to invest and manage your funds. I am at the opposite end, very near retirement. Your objectives and mine should be very different. My funds are mostly in "safe" investments, such as high grade bonds. I want to protect my assets.

At your age you should (my opinion) be more interested in growing your funds. You need to look at the holdings of each funds. Are they investing mainly in bonds, government securities, blue chip stocks, high tech stocks, energy stock. The prospectus (they had to make this available to you, or you can probably find on line. It states the investment philosophy for the fund, and will also show the results, usually for one year, three year, five year and life of the fund.

Personally I would recommend that you stay away from funds that only earn income from bonds.

I also I suggest that every time you get a raise, put a portion of it in to your 401k. For example if you get a 3% raise, up your 401k percent by 1%. this will really grow your 401k. currently I am putting in 12% and my company is putting in 5%. It will build up really fast.

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Put at least 50% in a stable value fund.

You never know what the markets will do in the next year - and you don't want to risk it all.

The Dreyfus Index Fund follows the S&P - high risk, but DO put a little in that.

After all, you don't want to be completely out of the markets.

But do please put most in the stable value fund - it will give you peace of mind your money is safe.

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The plan administrator should have someone available to help you with that, for free. They will help you determine your risk profile and your goals and appropriate investments.