Unfortunately, there isn't any magic formula or correct answer IMHO.
Most of the calculators and books that talk about retirement accounts push either a 60/40 or 50/50 split between equities and bonds. Then there is the random advice on how to split up the equities. I'm a rather "black/white type" when it comes to things so I'm also wrestling with the "right" mix.
I'm probably a little closer than you to RE. I've recently declared myself FI but personal issues make the RE part better to be delayed. I'm under no stress in what I do and it's sometimes even fun. Three day weekends are normal but I digress....
Right now I'm 85/15. I have just sold some SPY to get there from 90/10. That is still too high and my plan would be to get to 70/30 by August -- my official rebalance date. As an equity junky, I have to sell off my equities in little chunks so I can take the pain.
That will put me at the following:
- 30% cash/laddered CDs (less than 2 yr maturity - I'm market timing interest rates but there also isn't any incentive for going longer)
- 25% foreign (DODFX - 15% and VEIEX - 10%)
- 10% small cap (VSMAX)
- 35% large cap (SPY, IWD, VTSMX and BAC)
Theoretically, I still need to move a bit more into fixed income. That 30% does represent 5 years of living expenses (high lifestyle budget) so I'm wondering why I should increase it beyond that.
There's my stuff for what it's worth.