No wonder you're confused - your plan has too many choices. Investment is a simple activity when done correctly that is needlessly complicated by the financial industry. Let's try to clear the fog.
Buy this book and check out the website www.analyzenow.com
. Buying this book will be a very good investment for you.
Author: J.K. Lasser (this is a pen name, the true author is Henry Hebeler).
Title: Your Winning Retirement Plan
Go to Chapters labeled Pre-Retirement and Post-Retirement Planning towards the back. Follow the tables and charts and step-by-step process to plan your retirement.
The book has you estimate your retirement expenses, subtracts your Social Security and pension income, and then you know what you must cover with your own investments. It then gives you an idea of what % of your portfolio must be in stock, bonds, and cash. It takes risk and contingency planning into account. It is very practical. Your wife will love it; have her help you.
At the end of the process, you can evaluate the tradeoff of investing more in stock for potentially more money, or investing in less risky investments and having potentially less money.
The author is a retired engineer and former Boeing business manager who is conservative and will steer you in the right direction. he has a website called www.analyzenow.com
that gives practical retirement advice.
Once you know how much you keep in cash and what % to invest in stock and bonds, almost anyone on this board will recommend you go with low-cost index funds for the stock and bond portion. Below are the low-cost index options from your list. If you construct your portfolio using these four funds, you will have broad coverage in the market and stand a good chance of doing as well or better than most investors out there. Your task is to determine how to allocate your portfolio among these four funds:
You are already familiar with the stable value funds.
For bonds, its the North Carolina Fixed Income Index 0.25%
For large company US stocks, its Fidelity Spartan U.S. Equity Index FUSEX 0.10%
For medium to small company US stocks, its North Carolina SMID Cap Index Fund 0.24%
For international company stocks, its North Carolina International Index Fund 0.31%
Regarding how you invest in these four funds, I can only tell you how I would approach it - you need to decide this for yourself, perhaps with a financial planner to help. An initial cut is to assume the stock portion is (100% - your age). So if you are 60 years old, then stocks should be (100-60) or 40% of your portfolio, with bonds filling the remaining 60%. Since you are very risk averse, you might want fewer stocks and more bonds - only you can make that decision.
Once you know the total amount to invest in stocks, then a rule of thumb is to make the international stock fund anywhere from 15% to 40% of that total number. For you, I might stick on the low end, no more than 25% of your total stock amount. Ultimately its up to you and your financial planner. The balance is split between the US large and the US medium/small funds. If you want it to look like the US market, then 65% to 70% of the US stock amount would be the large and 30% to 35% the medium/small. If you took this advice, your entire portfolio allocation would look like this:
Bonds, North Carolina Fixed Income Index - 60% of total portfolio
Large US stocks, Fidelity Spartan U.S. Equity Index FUSEX - 20% of total portfolio
Medium to small US stocks, North Carolina SMID Cap Index Fund - 10% of total portfolio
International stocks, North Carolina International Index Fund - 10% of total portfolio.
If you find this to be too complicated or hesitate to make the decision, your 401(k) offers a simpler alternative that requires only one investment decision - the Fidelity Freedom funds. You estimate the year to retire and then invest your entire portfolio into the fund that best matches your time horizon and risk tolerance.
Fidelity Freedom 2000 FFFBX 0.51%
Fidelity Freedom 2010 FFFCX 0.67%
Fidelity Freedom 2020 FFFDX 0.74%
Fidelity Freedom 2030 FFFEX 0.79%
Fidelity Freedom Income FFFAX 0.50%
In looking at the rest of the mutual funds in your 401(k) plan, I personally would not invest in them because they are either too expensive or do not give you the broad market exposure you need.
I hope this gives you a clearer view of some alternatives. Of course, this doesn't replace your own decision-making or that of a financial planner.