1. Look at your time horizon. At 29, you probably won't need the money until you're 60 or 65. That gives you 31-36 years. That's your time horizon.
2. That being said, you're in this for the long term. Time is on your side and you can afford to put your money in long-term investments. This means equities.
3. Give yourself a good mix of foreign stocks, domestic stocks, and small and large cap stocks. With our choices, that's Russell 2000 (small cap), S&P 500 (domestic large cap), and EAFE (foreign stocks).
4. For the next 20-25 years, you should be keeping it in a long-term capacity.
5. There's an option to rebalance every 90 days. Do it. Set your percentages for each fund (say, 33% in each), and rebalance it every 90-180 days. This "sells" your top performers, locking in those gains that you made, and "buys" your low performers, getting them at a discount.
6. Did I mention long term?
7. Look at your statements once a month. Any more than that, and you will be caught up in the emotion watching as some of your funds dip lower. This will happen. You may lose 20% (or more), but you will be up 20% the next year, and maybe 18% the following year. And, when you're down 20%, that's like buying shares in that fund at a 20% discount. Who doesn't love a sale?
8. When you start getting closer to retirement (5-8 years), post again to see how you should start shifting your portfolio.
Cheers!