The choices are:
Government Securities
Fixed Income Index
Common Stock Index
Small Cap Stock Index
International Stock Index
Forget the Government Securities and Fixed Income Index.
Split the money among the remaining three ?
I would get out of all Government Securities (I am assuming they are Treasury Notes) and distribute between the other 4 choices - not evenly across the other 4, you have to do it based on your age & years to retirement.
Bill Gross, who runs one of the biggest mutual funds has sold all of his Government Securities.
I like them in the reverse of the order in which they are listed.
Get out of the Government Securities and do not invest in the Fixed income index. Depending on your tolerance for risk and fluctuations in your investments the other three are your best options. Over a long period of time ( >7 years) a well managed small cap should outperform a Common Stock index but will be more volatile.