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Hi Mahi,

At your age it's good to have more money invested in stocks. 80% is about right. Knowing which equity investment options to choose from is the hard part for many. I have developed an investment model that helps me decide which options to choose each year. It compares equity index strategies and let's me know which strategies will do relatively better than others 1 year out into the future. Once I know which strategies will be in favor I invest only in those and hold for a year. Then I do the same thing the following year. If there is significant down market due to an economic recession I switch to a 100% bond-only strategy to lock-in my equity returns. I switch back to stocks when equity markets begin to recover.

Your allocation is a diversified approach to investing in that you equal weight to all equity strategies. I would suggest a 100% allocation to equities with a more concentrated approach to your allocation in terms of options. Using index funds, try 33.33% Emerging Markets, 33.33% Mid Cap, & 33.33% Large Cap. Assuming normal market conditions stay with this allocation through 7/31/2008.

Good luck!

-Allan