Welcome to the forum
Its great that you have no debt. You are off to a great start with your saving and investing, its great that you are maxing your IRA and 401k, and you have some decent offerings in your 401k. I don't think that you need to list the higher expense choices in the 401k.
WindGypsy wrote:Age: 27
Desired Asset allocation: Not 100% sure yet, thinking 25-30% stocks / 70-75% Bonds..
Desired International allocation: 20%?
I'll start by suggesting that you re-think this, 75/25 stock/bonds would be more usual. Please see : Wiki article link: Asset Allocation
; and viewtopic.php?p=1217243#p1217243
. Given what you have in your accounts now, you may have meant 75 stock/25 bond anyway. The 20% of stocks in international seems reasonable.
1. What areas of improvement are there for my Roth and 401k accounts allocations? I plan to max both accounts every year. Should I be concerned with having all of my Roth in the TRF that has 90/10 allocation, or just go heavier in Bonds in my 401k to balance?
2. I'm looking for suggestions on opening taxable accounts to make additional contributions beyond the roth and 401k.
2. The better more tax-efficient choices for taxable accounts are large cap or total market type stock index funds, like Vanguard Total International Stock Index Fund Investor Shares (VGTSX), and Vanguard Total Stock Market Index Fund Investor Shares (VTSMX). Wiki article link: Principles of Tax-Efficient Fund Placement
1. Roth IRA
. Since you will be using a taxable account and need to use tax-efficient funds there, I think you will find it easier to NOT use a target retirement fund in the Roth IRA. The prime benefit to a TR fund is its set-it-and-forget-it simplicity, you lose that benefit when you have to use it with regular index funds. Using a TR fund makes it harder to keep track of your asset allocation, and means you have to frequently rebalance the funds you keep in other accounts. 401k.
Your 401k is your largest account, and will likely continue to be your largest account since it will be recieving the largest contributions. So I think it will be wise to continue to hold all of your basic asset types there, for ease of management and rebalancing going forward.
Here is portfolio idea along those lines to consider, using the funds you have picked out in the 401k, which should work well for you: Taxable
(23%; $10k; adds $12k/yr)
10%, Vanguard Total International Stock Index Fund Investor Shares (VGTSX), er = 0.22% , <= very tax efficient
18%, Vanguard Total Stock Market Index Fund Investor Shares (VTSMX), er = 0.18%, <= very tax efficient401k with Prudential
(51%; $22k; adds $17.5k/yr plus match)
25% Core Bond Enhanced Index/PIM fund / 0.37
05% Dodge and Cox International DODFX? (Value) / 0.64, <= a nice managed int'l fund, moderate expense ratio
21% Dryden S&P 500 Index fund / 0.32
00% Columbia Mid-Cap Index A NTIAX (Blend) / 0.46
00% Columbia Small-Cap Index A NMSAX (Blend) / 0.47
(You could have all 21% domestic in the S&P 500 fund, or mix in the mid and small cap as you wish. Wiki article link: Approximating Total Stock Market
.) Roth IRA
(26%; $11k; add $5.5k/yr)
26%, Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), er = 0.06%.
This gives you a simple 5 - 7 fund portfolio, which is tax-efficient, which is broadly diversified, with low expenses, which should be easy to manage and rebalance.
. . . .
3. What alternatives to my 0.1% savings account should I consider for keeping my emergency savings?
3. There are currently no good alternatives, except perhaps a short term bond fund or short term CD. I don't think I-bonds are a good idea for you unless and until you need and develop a really large emergency fund. "I Bonds cannot be redeemed during the first year, and if you redeem them within the first five years after purchase, you lose the most recent three months' interest." Wiki article link: I Savings Bonds
I hope that this helps.