I think my choices may also come down to "you can pick one of these 12-ish [actually, I think it's more like 20] funds", but most of the funds are index funds. In general I've found the selection pretty adequate for my needs, since I'd probably be putting it into index funds anyway, and there're only so many indexes out there. My only quibble is that there's not all that much international diversification possible - but my 401k limit isn't anywhere near my total savings, so I can just put outside money towards that.