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macmanmike, you need to max out your contributions, if you can afford it.The Dryfus fund you mentioned is a good one, however you can't have all your eggs in one basket. Trust me, you can get hurt fast. Speaking of pain, try not to pay much attention to performance in the short term, since you are young, time is on your side, and the market only knows one direction (long term) and that's up. Try to spread out your risk by investing in at least 4 different funds, and make sure they have different objectives, because different sectors move at different times and you always want to have one or two that are really taking off at any given time.
As to your savings, 6 months living expences are about what anyone should need. The rest should be in the market, money makes money, and savings accounts don't pay enough to keep up with inflation. The cost of living goes up by more than the 1 to 2 percent you get from savings, so you are essentially loosing money year over year.
Find a financial advisor you can trust, and stow away all you can now. Chances are your cost of living is the lowest it will ever be, soon comes the hose the kids the car and everthing else.
Best of luck to you!
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A day late, and a dollar short.
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