Third Approach:

Your large cap is taken care of by the employer match. Unless you want
something else specific in large cap, you can take your contribution and
put it in the remaining categories in the ratio that you had them

2:1 Bonds:Other Stock
2000$ Bonds : 1000$ other stock.

This would make your total

50% Large Cap: 33.33% Bonds : 16.67% other stock

Bucky wrote:

- quote -

What do you want to acomplish?

"Bucky" <uw_badgers[at]mail.com> wrote in message
news:1108414519.206391.289510[at]l41g2000cwc.googlegroups.com...
- quote -


======================================= MODERATOR'S COMMENT:
Please trim the post to which you are responding. "Trim" means that except for a few lines to add context, the previous post is deleted.

Let's say that my ideal 401K allocation is 50% bonds, 25% large cap
stock, and 25% other stock (small cap, international, etc). Let's say
that I contribute $3000 and my employer matches that. This seems simple
enough:
bonds = $3000, large cap = $1500, other stock = $1500.

But here's the problem, my employer's match does not go into the same
401K account, it goes into a special account that can only be invested
in a S&P500 index. I've thought of two approaches, care to comment or
suggest another approach?

1. Priority is to maintain stock to bond ratio. Forget about
diversifying with other stocks (small caps, international, etc).

bonds = $3000, large cap = $3000, other stock = $0

2. Priority is to maintain allocation targets and diversification.
Treat excess employer match as "bonus" outside of my allocation
targets.

bonds = $2000, large cap = $1000, other stock = $1000 (50/25/25 ratio)
bonus large cap = $2000