Help me balance index fund portfolio/ invest 20k

[LB_001]

I currently have the following portfolio:
Unsheltered from taxes:
Vanguard Total Stock Market Index Fund - $20,000
Vanguard Tax-Managed Small-Cap Fund - $10,000
Vanguard Tax-Managed International Fund - $10,000

Retirement account in an SEP IRA:
Vanguard Mid-Cap Index Fund - $20,000
Vanguard Small-Cap Value Index Fund - $20,000

I tried to take a more aggressive approach with my retirement fund since ideally I won't be touching any of it for 20+ years and since historically smaller value companies have had the best returns I tried to tilt the balance towards that side. I'd like the non-retirment account to be fairly balanced. So, question one is it generally correct to view a regular account and a retirement account as seperate entities for the most part and balance each one seperately?

I'm looking to put $20,000 more into the non-sheltered regular account, any recommendations? So question two , am I fairly balanced with these 3 index funds and best suited to just add on to these or would it be better to buy something like 10k of a mid-cap value fund and 10k of a mid-cap growth fund? Thanks in advance

[Humble Pie]

[ QUOTE ]
since historically smaller value companies have had the best returns I tried to tilt the balance towards that side

[/ QUOTE ]

You sure you know what your doing?

[LB_001]

According to the four pillars of investing annualized returns from 1926-2000 are

Small Value stocks - 14.87%
Small Growth stocks - 9.92%
Large Value stocks - 12.87%
Large Growth stocks - 10.77%

That's my source anyway, could be different for different time periods

[captZEEbo]

q1: depends on time frames. If they are both for retirement, but one is taxable, one isn't, you should look at it as one big portfolio (but for actually buying/selling stocks make sure to take note of which account it is for tax efficient investing purposes).

q2: I'd recommend some more foreign exposure [img]/images/graemlins/smile.gif[/img]

[gull]

Look at them as one big portfolio.

Your portfolio looks good. Since you asked, I would recommend adding more to foreign or emerging markets. Your current portfolio is almost entirely domestic.

(By the way, I think a small value tilt is perfectly sensible.)