I understand diversification mostly. You don’t want all your eggs in one basket. That way if a segment of the market fails, your whole retirement isn’t shot.
I have 35 years until retirement. My main goal is becoming debt free, so that’s where most of my money goes. Still, I invest enough in my 401k to get my employers 100% match. And I am putting 50 a month into a Roth Ira (just to get in the habit of investing and learn about it).
My 401k is a low expense SP500 index fund. My Roth is basically the same style but different name fund.
Does the fact that these are index funds provide enough diversification? At this point we are only talking less than 10k. Should I diversify more when it is larger or is this OK for long term?