I need to choose investment options for my 401k?

First, understand the length of time you plan to spend with this company is not particularly relevant to your 401(k) investment decisions.

Also, any money you put into the plan will be subject to taxes plus penalties if you take it out before age 59.5. This occurs even when if your employment ends and you choose to take the disbursement early (as opposed to rolling it over to a qualified plan).

Also, you should ensure that any contribution amount is feasible within your budget, goals and financial plan. (Meaning don't contribute so much that you can't cover bills and rack up debt).

You should also try to contribute an amount that maximizes any employer contribution, as this is like free money.

Given the listed horizon options, you are most likely an Extended Horizon Investor. This means your retirement is at some point in the very far future: ~40 years. Such a profile will put more of your money in stocks in general (as opposed to bonds). Additionally, the types of stock will include a higher allocation of more aggressive types (emerging markets, international etc).

Because of the long time period until retirement your portfolio will be able to better adjust to the volatility of this type of mix. However, it is not appropriate to a person retiring in a year. Their portfolio couldn't handle a 30% drop that recovers in two years, for example.

You need to develop an understanding of what your risk tolerance is, because even if you are an "extended horizon" investor, you may not be comfortable with large swings in your portfolio.

Having said that, if it were me (and I am moderately aggressive) I would do this, based on my own risk tolerances...remember...you need to get a feel for what your tolerance is:

1. 5%

2. 0

3. 0

4. 15%

5. 40%

6. 0%

7. 0%

8. 10%

9. 15%

10. 15%

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.

The smart money is in capital preservation right now. In other words, keep your money out of the market. The days of a diversified portfolio are basically over. We have more tough times coming in the stock market. Any investment that stays out of the market is best right now. Cash is King.

Out of the options above, I would select the Gov't money market. But look into the prospectus and determine what each option consists of.

Never invest in anything you do not completely understand.