To be honest, I would rather drop all REITs before I drop the international exposure.
I might be biased, since I am not US-based, but in my opinion stating that "US companies have a share of x% revenue abroad, thus you don't need to diversify internationally" is a bit too simplified/shortsighted. I like JLCollins quest for simplicity, since it helps a lot to stick the course over a 30-year investment phase, but here and there it is a bit over-simplified in my opinion.
It is not only a question of revenue but also a question of legislation, market access and understanding the local customers. For a long-term portfolio with a 30+ year investment horizon, I would not want to miss investing in the Alibaba's, Baidu's and Tencent's of this world - next to Facebook, Apple, Google and the like.
The question is, where will the growth happen in the future and who will benefit the most of it? Since I am not a fortune-teller, I don't know - so I try to invest everywhere.
As a reference, I like the allocation of the Vanguard target funds quite a lot, since they are simple and easy to replicate (e.g.,
https://investor.vanguard.com/mutual-funds/target-retirement/#/mini/holdings/0306). For the Target 2045, they allocate 54% US Total, 36% Intl., ~7% US Bond, ~3% Intl. bonds. If you don't have a US total market fund available, splitting it in large and mid/small caps is also not a big issue. However, I think your VSMAX is only small cap, so you might miss US midcaps.
Thus, for the overall allocation, I would drop money market, US REITs, International REITs, Lending club and maybe International emerging, as they are included with ~10% in VTIAX. Regarding TIPS I am not sure, aren't their returns tax-advantaged in the US? However, I am very sure that an element with 1.5% portfolio weight will have close to zero impact on the total portfolio performance. I guess a portfolio element with <5% is already borderline in terms of impact on the total portfolio performance.
You can see that by trying out different portfolios with one of the available backtesting tools, e.g. at portfoliovisualizer.com
Regarding Bonds: The Vanguard Target Retirement fund for your age bracket has a bond allocation of 10%. I think that is fair. If you want to go a more risky route, go for it. However I would rather reduce the cash in the emergency fund a bit instead of touching the bond part. Can you explain your rationale behind the large amount in your emergency fund? That might shed a different light on your risk tolerance.
Thus, a potential target allocation excluding your lending club balance could be the following:
- US large - 50% (simple 80/20 allocation between large and small)
- US mid/small - 12%
- International - 28% (exactly your current international exposure if you club Intl, Intl Emerging and Intl Reits together and exclude Lending Club)
- US Bonds - 7% (based on the Vanguard Target 2045 fund)
- International bonds - 3% (based on the Vanguard Target 2045 fund)