Is my 401k assett allocation OK?

[ring]

I'm 25 and I have sacrificed to contribute almost the maximum allowable by law to my 401k since I was eligible to participate (when I turned 21). I have 35-40 years before I retire, so I have only invested in stock passively managed index funds. I have no plans to buy bonds or put money into any actively managed funds. This means I am 100% equity with VERY low expenses. I divide my weekly contributions (plus company match) between the following funds:
-an S&P 500 fund with .07% expense ratio
-an international fund in 44 countries With an expense ratio of .18%
-a mid cap, small cap, micro cap USA equity fund, expense ratio .10%
These are the only equity index funds available to me.

I have an extremely high tolerance for volatility as I am focused on where my balance will be decades from now. For Now does 100% equities seem ok? I will of course have to change this when I am older.
Thanks for any opinions.

[osmont]

There's no way to judge your asset allocation without the percentages in each. I agree at your age all should be in stock funds at least for the next 25-30 years.

I don't agree on all assets going into indexes, especially International and small cap.

Here's my idea of a good asset allocation for you;

45% Large Cap US
25% International (75%-100% of this should be in managed funds if you have decent ones)
30% Mid cap and small cap (60%-75% of this should be in managed funds if you have decent ones).

5% if possible should be in REITS.

You should also have a ROTH IRA...... even if it means reducing your allocation to the 401K.
An added benefit (besides the obvious) is you get to pick from the whole world of no-load, low fee Mutual Funds. Stay clear of Vanguard. Way too conservative for your age (even with the great fee structure).

[sebastiano53]

At age 25 100% equities is OK. With 40+ years to retirement age you can take the higher risk higher reward for several years. I started a 401K about the same age as you did. In my 401K I almost always looked at the higher return from age 21-35. Then due to a job change I rolled my 401K to an IRA and began investing in individual stocks making sure I was diversified. At this time I am 49 and still nearly 100% in stocks with the IRA. Starting a Roth IRA is also a great idea, especially at your age.

[coinleain]

I do like your choices...
But I would also add a 'High Income' fund (junk bond) rather than a regular bond fund.
The percentage could slowly be brought up to equal your age.

[denzell]

At 25, I think you are on the right track. You can afford to play the averages and it will work out for you. The only caution I would have is if the economy should go completely in the tank (not a recession but if the sh*t hits the fan) then you need to get out of stocks. Don't be a like a lot of people (thankfully not me) who rode stocks to the bottom and then sold at the worst time. Know when you need to preserve your capital.