Douglas J. Lyons, CFA, CFP®

Russ is right that you will get different perspectives on the percentage allocation of international stocks in your portfolio. That's becasue a portfolio allocation has to be very personalized. For some, 30 to 40% may be appropriate, but for others as little as 5 to 10% may be right. You also need to separate developed country exposure from emerging markets in your international allocation decision. And remember, many of the US stocks you may already own provide you with the international exposure you need. Companies like CocaCola, McDonalds, and General Electric for example have a significant portion of their earnings generated from outside the US.

Sean makes some good points Jane. Target Date Funds also have what is called a glidepath. The glidepath is the change in allocation from a more equity oriented portfolio to a more bond oriented allocation in order to make the portfolio more conservative as you age. The problem is that there is no standard for glidepaths. Two TDFs could have the same allocation at their beginning and 15 years later be completely different. So the if you chose a TDF, know what you are getting.

With a Roth 401(k) the first qualified withdrawal (without penalty) begins 5 years from the first year of your first contribution to the plan. In your case, the year you were age 60. In contrast, for a Roth IRA, the 5 year period begins in the year to which your first contribution was attributable. Say you made a Roth IRA contribution in March 2009 for the 2008 tax year. The 5 year period for the Roth IRA begins Jan. 1, 2008. Check with your plan administrator. You may be able to do an in-service rollover while still working. If you roll your Roth 401(k) to your previously established (longer than 5 year) Roth IRA, you may implement the qualified withdrawal. Always check with your tax advisor before making important tax decisions.