Thanks for the suggestions, however some of the funds you recommend are not offered at my job (I work for the MTA, NYC Transit).
I wish they had a "total stock" portfolio, because if they did, I would definitely simplify things and invest only in this, instead of three funds.
I would also probably add REIT's and commodities if they were offered, which they are not; not to mention that I would also purchase a few individual dividend-paying growth stocks, if only they had them.
The only investment choices I have are:
* actively-managed mutual funds (individual, and Target-Date Funds)
* index funds
* a "stable" fund
I didn't choose any of the actively-managed funds because the fees are too high. The stable fund yields too little, so the only logical choice was low-cost index funds.
I came up with my asset allocation by trying to copy the Target Date funds.
I examined the asset allocation of the "2020 Target Date Fund", and tried as closely as possible to match that allocation on my own, without the management fees.
Actually, the 2020 Target Date Fund invests 52% of the portfolio in bonds, TIPS, and the Stable Fund. I thought that was a little TOO conservative, so I increased my stock exposure a bit.
If we were living in a more typical investment climate, I would go with conventional wisdom and keep my portfolio as it is (45% bonds/ 55% stocks). The only reason I am questioning this is not because I think this is a bad ratio, but because interest rates are at an all-time low, and can only go up from here. When they inevitably do, 45% of my portfolio (which I plan to retire on in about 8 years) may take a massive hit.
Similarly, if I increase my stock exposure, volatility can derail my retirement plans.