Where should I put taxable after-emergency fund money?

[Olav23]

Hi all,

I'm feeling sorta restless with my investments. I have added the max to the IRA for 2006 and will do 2007 soon. I also max out the 401k.

I'm pretty frugal which pairs well with having a high income. I'm off to a good start as far as RE.

Right now I am trying to keep my investments simple, as I am good at researching but bad at implementing. So I finally threw in the towel and tossed most of it into the vanguard target retirement 2045. I also put 5% into the vanguard REIT and another 5% in DJP in the tax sheltered accounts.

I've also got a sizable chunk in the taxable account in the 2045. It has a pretty healthy gain so I don't want to sell it and take a capital gain, although looking back it might be more tax efficient if I sliced-and-diced.

But after the emergency cushion of 6 months of expenses, I still have about $60k to do something with. At least it is currently earning 5% in emigrant direct.

Should I just throw this 60k into the Target retirement 2045 as well? I have been thinking I'd like to add a more small/value tilt to my portfolio, but am worried that if I just add a few mix and match funds, then I am not getting the benefits of the target retirement allocation and changing the asset %ages.

So, I am thinking either throw everything into the Target Retirement, or add some slice and dice in the taxable account. What do you guys think? If I want to add Small/value, I should probably sell some of the Target retirement in the tax sheltered accounts, and put it there instead, correct?

Thanks!