401(k) Help

Hi. I need some help with my current 401(k) and Profit Sharing account. I'm 22 Years Old and have a current Balance of roughly $1,900 in my account. I am extremely nervous as I have noticed that my account is down nearly 31% YTD. Ok, I currently have my Profit Sharing invested in Company Stock (WMT) and my 401(k) is invested 50% in EuroPacific GR R4 (REREX) and 50% in New York Davis Venture Fund (NYVTX). I can withstand a lot of risk and tolerance because of the potential reward it has. I just got "scared" when I saw my Balance down nearly 31%. I don't know if I should reallocate my choices, stay the course or add new options that are currently beaten down). Before my 23rd Birthday, I would like to open a Roth IRA. For my 401(k), I prefer to invest in Mutual Funds that are either 4 or 5 Stars rating by Morningstar. I also prefer to stay away from Bonds

Here are my choices (ones that are underlined are in my account currently):

EQUITY/STOCK
AIM INTERNATIONAL GROWTH FD A Core AIIEX $18.24 *4 star* [[**Possible Reallocation 15% 401k]]
AMERICAN EUROPACIFIC GR R4 Core REREX $28.16 (50% 401k) *5 star* [[**Possible Reallocation 25% 401k]]
DAVIS NY VENTURE FD CL A Core NYVTX $24.60 (50% 401k) *4 star* [[**Possible Reallocation 25% 401k]]
FRANKLIN SML-MID CAP GRWTH A Core FRSGX $20.80 *3 star*
ML EQUITY INDEX TRUST I Core MLEIX $72.70: The Trust seeks to provide investment results that, before expenses, replicate the total return of the Standard & Poor's 500 Composite Stock Price Index (S&P 500 Index).
*I also love this one since the S&P 500 is also down greatly from its year high* [[**Possible Reallocation 15% 401k]] or [[**Possible Reallocation 20% 401k]]

ML SMALL CAP INDEX CT TIER I Core MSAQX $15.62: The Trust seeks to privde investment results that, before expenses, replicate the total return of the Russell 2000 Index. *I really love this one since the Russell 2000 is down greatly from its high* [[**Possible Reallocation 15% 401k]] or [[**Possible Reallocation 20% 401k]]

RAINIER LARGE CAP GROWTH TRUST Core CITRT $6.43: The objective of the Trust is to maximize long-term capital appreciation. It will normally invest in approximately 40 to 80 companies, consisting primarily of holdings from the Russell 1000 Growth Index. *I like this one some because I told that I should primarily invest in Growth Stocks at my Age (22)* [[**Possible Reallocation 10% 401k]] or [[**Possible Reallocation 0% 401k]]

WAL MART STORES INC Core WMT $55.02 (100% Profit Sharing)
WESTWOOD SMID CAP VALUE TRUST Core SEIRT $7.56: The objective of the Trust is to meet exceed the return of the Russell 2500 Value Index

BOND/FIXED INCOME
PIMCO TOTAL RETURN FUND Core PTRAX $10.14

CASH EQUIV/STABLE VALUE
RETIREMENT PRESERVATION FD Core MLPXT $1.00: This Fund is managed by Blackrock Investment Management LLC and it seeks to provide preservation of participants investments, liquidity and current income that is typically higher than money market funds).

I also contribute about 25% of my Salary toward my 401(k). Walmart puts in 4% of their contributions to my Profit Sharing (2%) and 401(k) (2%) regardless if I contribute to my account or not.

Son, we are ALL down about 30%. You're not in a unique position.

There are two key things:

1 -- you are young, and have a long way to go. Heck, I'm old (40) and have a long way to go, too! I'm not sweating it. Instead, I'm buying! I opened my very first stock trading account a couple weeks ago, just to take advantage of the down market.

2 -- you haven't lost all that much money. So you lost 31% -- out of $1900, that's about $650, or a single month's house payment. Big deal! You'll get that "balance" back by simply investing two hundred a month until MLK Day. (To put it in perspective, my pastor has also lost about 30% of his portfolio, and he is (1) 85 years old, and (2) that 30% is approximately $900,000.)

I know. Well, I decided to invest like: 25% in REREX, 25% in NYVTX, 10% in AIIEX, 20% in MSAQX and 20% MLEIX. I think it will be good.

Good for you Tank!

My new allocation [401(k)]:
* 25% in American Europacific (REREX)
* 25% in New York Davis Trust (NYVTX)
* 20% in ML Small Cap Index CT Tier 1 (MSAQX) [Similar to Russell 2000]
* 20% in ML Equity Index Trust I (MLEIX) [Similar to S&P 500]
* 10% in AIM International Growth (AIIEX)

My new Profit Sharing Allocation:
* 100% in Wal-Mart Stock (WMT)

What do you guys think? At age 22, I think I made this a bit more aggressive. I decided to sell some EuroPacific and NY Davis Venture Fund to buy into my three other options, while I can get more of these mutual funds at a discount since the market still isn't performing too well.

Thank for all your time,

Frank