The sponsor of your 401(k) plan is considered to be a fiduciary: they are legally responsible for all decisions made regarding whose plan to use, what investments should be made available to plan participants, and a lot of other things you never see with the plan. If any of the decisions they make can be held in court to not be or weren't in the best interests on the plan participants, they can be personally sued for damages. If any professional here tells you how to invest your balances, they become a fiduciary to your plan also. They then get to possibly share in any legal settlement resulting from any recommendation they make that doesn't work out. Unless you went to an educational institution that taught courses in stock and bond market investing, your learning curve about how to invest your funds is going to be steep. Hazarding a guess that your 401(k) investment options are all mutual funds, a website like Morningstar, www.morningstar.com is a place to start learning what your fund offerings are all about. Morningstar has a lot of information about almost any mutual fund you can purchase. You may encounter a new vocabulary while investigating your investment alternatives. Please take time to learn the terms as they will be applicable in any investing you do going forward. I really and truly would like to be more help in this case, but the IRS, the Department of Labor and the tort lawyers have essentially tied our hands. Our educational system doesn't do a very good job of preparing anyone for the situation you are in.
I would start by seeing if your employer offers any educational benefits or information to help you make the decision.
After that, most people will want a portfolio diversified across several asset classes (such as US and International Stocks, US and International Bonds, Real Estate through REITs). The challenge is figuring out how much of each you need. Unfortunately, that is hard to say without knowing your situation.
One other option you can consider (if your employer offers them) is Target Date Funds. A Target Date funds adjusts over time to change the asset allocations as the Target Date gets closer.
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