Hi Mike,

You are getting lots of advice and some of it is conflicting. That does not mean one suggestion is better than another, but you have to know enough to choose what works best for you personally. I would caution you against doing anything until you have a strategy all worked out. The strategy needs to include:

• an asset allocation you have chosen to stay with
• a plan to get your portfolio more tax efficient
• annual additions to a Roth IRA
  
• A plan to get the number of funds in taxable down by selling funds with losses. You can take a tax deduction on the losses.
  
• Finally, buying the new funds you have decided on. That's the last step.
  

 A few comments:

You mentioned keeping an eye on near-term market indicators. No one knows what the market is going to do and if you are looking at indicators, that implies market timing. Timing does not work for the average investor and it can only cause you to make mistakes. Also, avoid media hype altogether.

Your taxable account is extremely tax-inefficient and the taxes you are paying are quite a bit higher than your fees. You can get both of these costs down substantially with good planning. This is especially important in retirement.

You can (and should) contribute 6k/year to a Roth. Treat all accounts as one portfolio when doing your plan strategy. 

Normally in a well-managed taxable account it's best to have dividends and interest transfered to a money market account because that allows you to rebalance without selling anything. However, in your case you don't have a tax efficient account and there are too many funds, so for now it's best to reinvest. You mentioned taking some profit, but there is no profit so reinvest in order to buy additional shares when they are cheaper.

Smart investing is not difficult once you understand the fundamentals. I don't doubt that you can manage your own assets if you are willing to educate yourself a little bit. Here is a primer on investing essentials that will help you get organized. Try the first 8 chapters.

http://investingessentials.blogspot.com/ 

Paul