I've read that I should consider bond funds tax-inefficient and to place those in tax-advantaged accounts. Is that something I should consider, or is that something that should only be considered by the wealthy?
Yes, Bond funds are very tax inefficient right now. Mainly because a lot are taxed as ordinary income and not as a qualified dividend. http://www.bogleheads.org/wiki/Principles_of_Tax-Efficient_Fund_Placement
I hold VTSAX and VEMAX (emerging market) in my taxable account. I wouldn't suggest REIT with you, mainly because you are already exposed to real estate (albeit, locally) through your rentals. But, if you do a REIT, I would definitely hold it in your Roth or 401k (if it is an option).
You should also look at the options in your 401k. Unfortunately, that is where a bulk of your funds are, so you may have to bite the bullet and pay some higher fees.
It's hard to say without knowing the funds and fees of the funds available to you through your 401k. the fees should be rather transparent, and if they aren't, I'd walk down to HR and ask them. It is federal law afterall, that they all be made available to you.
But, assuming your fees are high, a loose suggestion would be:401k
a fund used to tilt, if any, or more total market if using a 3 fund portfolioTaxable
Many variations can be made off of this. E.g. hold more VTSAX in taxable and an international fund in the roth if doing the 3 fund portfolio.
For know, I would suggest one of the more simpler lazy portfolios until you really understand the point of tilting. And, that should get you all setup really quickly.
"If you only have 1 year to live, move to Penn...as it will seem like an eternity."
Good to see you back, I was starting to miss your incisive commentary!