You've asked for opinion. Here is what I would tell family and friends: One doesn't choose an asset mix for a 401k. One diversifies as fully as possible. One contributes up to at least the company max. ChuanFa suggests a target date fund for the year of retirement -- I'd agree, but add 10 years to that target date. Want to retire in 2050, use VTTSX instead. Oh --and ChaunFa's idea of not looking at it -- solid idea. Even for people who know what they are doing -- solid idea.

High cash yields != high liquidity. If you want it fast, you'll earn nothing on it. If you want it slower, but 'safe', then a CD ladder and/or I-bonds for some interest, even if inflation eats a goodly chunk.

Now -- how much are you contributing and when do you want to retire? Basic math: if you plan on a 4% withdrawal in retirement and want diversified investments to last forever, you'll need 25x your annual budget as a target amount. Live on $10k/yr, that's 250,000 in the account. It's called the 4% rule. I personally use the 3% rule for the same calcs, but I'm not as well-liked.

Another way to look at it: If you use up all of what you earn a given year on your budget, and you want to learn how much you need to put away to live your lifestyle, then the math is easy. Put 5% into your retirement, and in 20 years, you'll have enough to live on for one year. Put 10% in, and you get there in 10 years. Put 25% in, and you have your free year in 4 years of work. See the pattern?