lauberge49 wrote:If I am not comfortable with International in the taxable, what would you suggest. I might go 5% Intl, then what?
Is there a reason you are uncomfortable with International in the taxable account? Or is it just that you are uncomfortable with international in any account? Why?
If you don't want int'l in the taxable account, you could then instead put put some more International in one of the IRAs.
A different good choice for taxable could be:
Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), er = 0.05%
lauberge49 wrote:What about the tax managed funds? VTMSX- TM SMALLCAP
VTGLX-TM GROWTH AND INCOME
VTCLX-TAX MANAGED CAPITAL APPRECIATION
Not sure which are the most tax-efficient, you have exhausted my knowledge of tax-efficiency. I suspect some or all may not be as tax-efficient as VTSAX or VTIAX, but I don't know. Some of this may depend on your marginal tax rate, which you have not mentioned so far.
89% of the total portfolio is in the IRAs, so there is just no need to be very complicated in the taxable account.
In my opinion, you are putting the cart way before the horse here. I posted this earlier --
First decide [emphasis added] on an asset allocation you can be comfortable with. For the stock bond mix please consider -- Wiki article link: Asset Allocation ; and 2011 Regression, % Stocks vs Age . For the domestic/international mix, please consider -- Wiki article link: Domestic/International ; and 2013 poll results, median = 30% of stocks .
Also please consider Tabel 3 from the Trinity Study about asset allocation and portfolio withdrawals in retirement. As dbr has already mentioned, there is a broad range of asset allocations that should be very safe. For some context on that study, you might look at Trinity Study, Retirement Withdrawal Rates and the Chance for Success, Updated Through 2009 .
What overall asset allocation do you think you might want, that is:
1. What stock % and what bond %; and
2. What % of total stocks in domestic, and what % of total stocks in international stocks?; and
3. Do you want your domestic stock investment to include some REIT beyond what is already in the Total Stock Market fund VTSAX? ; and
4. Do you want your domestic stock investment to include some extra small cap beyond what is included in VTSAX?
Its important to make those asset allocation decisions first, before trying to pick the particular funds to use and even before deciding which accounts to place the assets or funds in.
For example, if you wanted that extra small cap in your domestic stocks, then it would be best to just put it in one of the IRAs, since you have plenty of room there and because Vanguard Small-Cap Index Fund Admiral Shares (VSMAX), er = 0.10%, has a lower expense ratio than Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX), er = 0.14%. And you would rather have Vanguard Total Stock Market Index Fund Admiral Shares (VTSAX), er = 0.05%, in taxable than have Vanguard Tax-Managed Small-Cap Fund Admiral Shares (VTMSX), er = 0.14%, in taxable, because both are very tax-efficient and it would take a lot of improved tax-efficiency in the small cap to make up for the difference of 0.09% in the expense ratios.
So please try to make the asset allocation decisions first, at least some tentative decisions, before getting to the rest of these questions. The questions you are asking can be important, but other questions really do need to come first.