re: Need help with 401(k) allocation

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Even though some conventional wisdom might tell you it aids in diversification.....accomplishing that vs what you are giving up capturing potential gains when the stock market rises is a lot more than you might think.

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Having bond allocation helps you take advantage of market swings better.

Market dives, increasing your bond allocation, and you sell off to buy more stock when it's low.

You can later rebuild bond allocation during rebound/peak period.

This isn't an insignificant benefit, and is why many long term allocations still include bonds. If you had a long horizon I wouldn't go beyond 5-10% but it still needs to be there.