<prompt> Human: Hello! This post is rather extensive. I have some basic financial understanding but wanted to see if some gurus or posters here had more insight on this situation and see how they would proceed given the below information! sorry in advance for poor formattingMy two main questions are: 1 Do I really need diversification with my small balances? I remember reading somewhere or forming the opinion over the time internally if I dont have 250,000 then it is not really worth the effort putting it in anything beyond an SP 500 Index. It may not help that Ive seen depreciation in my account made 100 of an International Index. I am not huge on bonds but I understand how it offsets volatility, has years where it gives the best returns, and allows you to buy cheap stocks. I will list the fund offerings down below 2 Would 10 Roth 401k and maxing out my Roth IRA suffice? I would put more but I dont make much money and I have real bills pending Im living in my parents secondary home and want towill have to help with the mortgage, thinking 1,000 if possible along with other typical expenses: internet, utilities, phone, fun purchases here and there, gas, car maintenance, insurance, etc.CliffsSalary is around 40-45k and I have the ambition and hope that it will only increase in time numbers are low but could be worst. I am 24 years old. Hence, I think Roth makes too much sense in my situation feel free to agree or disagree hereAccounts:Debit Card Account: 2,453.92 have to maintain 1,500 to be charged no fees. Citizens Bank is mediocre but my parents started here and so did I, branch in walking distance if necessary. I would rather Santander or Ally Bank, maybe later.Student Loans: -3,229.71 This will be paid off relatively soon. 401k: 9,041.38 Roth; 1,581.10 employer match The employer match portion will continue to accumulate vesting, need a year and a few months; plan on adding at least 4,391 10 Roth contributions on my end if not moreRoth IRA: 12,108 100 Vanguard Total Stock Market will add 5,500 more and is a priority. May introduce some REITs or Health Care but doubtful Vanguard taxable: 9,640 100 Vanguard Total International I would like to add more money to this but I will be strapped for cash; did drop from the 10,100 I did put in initially401k options please be mindful there is an account maintenance fee of 11 basis points-Name; Ticker; Expense Ratio interestInternational American Funds Capital World; RWIGX; 0.45 so-so American Funds EuroPacific; RERGX; 0.49 so-so Oakmark International; OAKIX; 0.98 somewhat interested, albeit expensiveSmall Cap AllianzGI NFJ Small Cap Value; PSVIX; 0.86 somewhat interested Buffalo Small Cap; BUFSX; 1.0 so-so SP600 company equivalent of SP600 Small Cap 600; NA; 0.60 Mid Cap Artisan Mid Cap Institutional; APHMX; 1.03 somewhat interested Perkins Mid Cap Value; JDPNX; 0.49 very interested Wells Fargo Advantage Opportunity; WOFNX; 0.84 not interested Large Cap Funds American Century Ultra Institutional; TWUIX; 0.79 no idea, not very American Funds Growth Fund of America; RGAGX; 0.33 somewhat interested Blackrock Equity Index; NA; 0.02 YES! Dodge Cox Stock Fund; DODGX; 0.52 so-so Pioneer Fundamental Growth; FUNYX; 0.82 no idea, not very interestedBond Funds Company Loomis Sayles Bond Fund I; NA; 0.90 If I am allocating any bonds, most likely this Company US Govt Mortgage Security Fund I; NA; 0.60 little to no interest PIMCO Total Return Institutional; PITRX; 0.46 no wayEmployer Stock and Certificate Fun as well as Stable Value disregardno interestStandard company target date funds; NA; 0.47 0 nothing specialAsset Allocations; NA; vary from 0.83-1.18 0 nothing specialMoney FlowsTo get a sense of what I have to work with, I will take a regular working week excluding OT:Gross: 834.87 per week, or really net: 641.76. Such that over a year, I have 641.76x52 31,967.52 If I contribute 10 Roth through my 401k, its 83.49 a week or over the year, 4,391 If I contribute 15 Roth through my 401k, its 125.23 a week or over the year, 6,511 To really max out the 18,000 limit, it would require that I put in approximately 40-42 which maybe this year I could but next year I have real expenses to take care of. I am leaning towards 10, as I only need to put in 8 to get my employer matching of 4. Factor in my need to fill up my Roth IRA, thats another 5,500. 31,967.52 5,500 Roth IRA 4,391 Roth 401k 10 leaves me with 22,076.52 net to work with. I may squeeze some more in my 401k. Im generally very frugal. Thank you for your time, I take the responses seriously and really appreciate any insightcomment you may have to add to help my situation. Lets just hope I make enough money where I dont have to put this much thought into things in the immediate future!  <response>: Is diversification truly necessary with smaller balances?Necessary? No. A good idea? Yes. if I dont have 250,000Ive never heard that as being the threshold after which the benefits of diversification start to kick in, so to speak. 