1. You are participating in your employer’s 401(k) retirement plan and have $165,000 invested in a conservative bond fund that has a year-to-date return of 1.4 percent.

You also have $150,000 invested in a conservative large-cap fund that has a year-to-date return of 8.3 percent. You like the returns the large-cap fund has, but you like the safety of the bond fund. You also think that it may be time to pick at least one more fund to diversify your holdings or even start investing in stocks instead of funds. What should you do?