**Your domestic and international equity funds are stock investments.** “Equities” means stocks; those funds let you own shares in many companies. For example, the S&P 500 Index Fund provides exposure to large U.S. companies. [SEC guidance on diversification](https://www.investor.gov/introduction-investing/getting-started/asset-allocation).

**For employer stock, my starting recommendation is 0% of your voluntary allocation.** Your paycheck already depends on that bank. Holding its stock adds the possibility that employment problems and investment losses happen together. You can build a diversified retirement portfolio using the other choices. [FINRA’s guidance on concentration risk](https://www.finra.org/investors/insights/concentration-risk).

For the rest, consider two approaches:

**1. Use a target-date fund as your entire allocation.** This is a straightforward choice if its fees, stock allocation, and retirement date suit you. It holds a mix of investments and adjusts that mix over time. Check the fund’s fact sheet and expense ratio. [SEC guidance on target-date funds](https://www.investor.gov/introduction-investing/general-resources/news-alerts/alerts-bulletins/investor-bulletins/target-date-funds-investor-bulletin).

The **2055** date means an expected retirement around 2055. If you’re in your early 20s today and expect to retire around 65, a **2065 or 2070** fund would be closer to your timeline. Ask whether the plan offers those dates.

**2. Build your own allocation using broad funds.** For someone with decades until retirement who can tolerate substantial market declines, this is an illustrative **90% stocks / 10% bonds** allocation:

| Fund | Allocation |
|---|---:|
| S&P 500 Index Fund | 50% |
| S&P MidCap 400 Index Fund | 5% |
| Small Cap Index Fund | 5% |
| International Large Cap Index Fund | 25% |
| Emerging Market Equity Index Fund | 5% |
| Core Bond Fund | 10% |
| Company stock | 0% |
| **Total** | **100%** |

This example assumes the international fund covers developed markets and the Core Bond Fund primarily holds investment-grade bonds. Confirm those details and compare fees before choosing.

The percentages are a starting example; your age alone doesn’t determine the right risk level. If a large market decline would cause you to sell, consider a larger bond allocation. For a portfolio you manage yourself, review and rebalance roughly annually. [SEC guidance on allocation and rebalancing](https://www.investor.gov/introduction-investing/getting-started/asset-allocation).

You don’t need an allocation to every fund. Several large-cap funds can hold overlapping stocks. **The fund fact sheets and expense ratios are the key missing information for refining your choice.**