I'm currently wondering if my portfolio has enough diversification for my Roth IRA and just wanted to hear some other peoples opinions, thoughts, and ideas on my portfolio and maybe make some decisions based off what i see and do some research into it.
My current portfolio consists of about 75% s&p500 index, 22% total (us) market fund, and then 3% in google. the google was my first trade ever so i just keep it around even if it has a lot of overlap with the other indexes. This being said I know the two funds have overlap with the top 500 stocks but have read that some overlap can be okay in this instance since the total market fund also covers all the other stocks in the market, although i feel like maybe im not diversified enough. I'd say i have about a medium risk tolerance since I only just turned 20 and know i have a lot of potential for growth with the higher risk over the long term. I thought about a international fund but I'm not sure that it would make sense since they don't perform near the us market. I know it diversifies but i also have the worry that if the US is such a power holder in markets that if we go down, then a lot of other markets may also see downturns which wouldn't really offset a downturn in the US markets if it were to occur. I'm not sure if i should maybe take a small position in things that may have more risk/reward in a shorter term and then re-allocate on a certain time based period so i don't get too caught up in a risk allocation.
What would you guys do in my situation? Do you think my portfolio is fine as is? Is it too much overlapping with the US market? Should I just sit where i'm at because i'm so young and am in a good position?
Again any thoughts, ideas, or opinions would be appreciated. I just like to see what other people do and how they think, then reflect those on my own situation and see if it applies!
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