Congrats! You're very much on the right track re:Roth, though I wouldn't target yield so much as relevance to portfolio for your bond allocation and I'm not sure why the focus on dividend trusts, the avoidance of large caps entirely or the characterization of small and mid-cap companies as play money (it can't be at 30%).

You can absolutely not expect an annual return of 8 to 14% - certainly not in real dollars and probably not in nominal dollars either. This is not the way to frame your goals, in my opinion - you need to accept that the market is not always going to return X amount, but build your portfolio around expected long-term average returns instead as well as your need/ability to take risk.

I guess I'm trying to sort out how you arrived at your specific splits, though applaud you for seeking a significant degree of safety via bonds. If I were to modify your portfolio without disrupting (hopefully) the overall intent too much, I would do it as follows, incorporating safe bonds to balance the riskier equities and making sure to include stocks beyond the US:

• 40% in Bonds (50/50 TIPS/Intermediate-Term Treasuries)
• 30% in US Stocks (50/50 Total Market and Small Cap Blend, to maintain your desired tilt toward small/mid)
• 30% in International Stocks (50/50 Developed/Emerging, perhaps)

You could also add an REIT index like Vanguard's if you want something along those lines, but remember: REITs are already included in broad-market index funds. otherwise, your funds would be something like:

• Vanguard Inflation-Protected Securities 20%
• Vanguard Intermediate-Term Treasuries 20%
• Vanguard Total Stock Market Index 15%
• Vanguard Small Cap Index 15%
• Vanguard Developed ex-US 15%
• Vangaurd Emerging 15%

If you want to stock pick, keep this in mind: http://www.efficientfrontier.com/ef/900/15st.htm