<prompt> Human: Im looking back at my 401Ks performance for 2015 and my personal rate of return was -0.9. Right now Im looking to have my 401K 100 in stock since Im about 30 years from retiring at least, and I have a whole life insurance policy that I would consider as bonds for now. My investment approach was:40 Large Cap14 Mid- Cap8 Small Cap25 international Developed13 international emergingIm trying to understand what I should change going forward. I read about a 7 return rate and I dont see how people get there. In the 3 years since I graduated I havent come close to 7. Can anyone give me advice on what to look for in the different options I can choose in my 401K. Im also confused as to how to know when to rebalance the 401K, and when I should move my stocks from one index to bother inside the 401K.  <response>: Im trying to understand what I should change going forward. Nothing. I read about a 7 return rate and I dont see how people get there.The 7 number you hear about is a long-term average. Stocks have a higher return to account for volatility, which is why people tell you should not invest in them for short-term gains. You need to be prepared for swings of up to 40 either way with equity investments. The bad years get balanced out by killer years. 