How do we stack up? Whats Next?

[ricky bobby]

Here is our Situation:

We carry $0 debt
We have no children
I'm 38, wife is 39. We're a little late to the savings party, but damn, my 20's were fun!

Income:
-My Salary 80k
-Wifes Salary 167k (short term job, will return to 80-90K within 1 year)

Investable Assets:
$42040 Cash
$105478 - Vangaurd IRA VTSAX - Maxing out this year
$28646 - Vangaurd IRA VTSAX - Maxed out this year
$7698 - Edward Jones (I need to close the account and roll it)
$1880 - Betterment - This account is short term savings, and the balance changes often
$85473 - 403b - seeing 12% of Wifes Salary
Total - $271215

Real Estate Assets:
1. Rental (4bd/2bth) rents for $1440, mortgage payment is $955. Worth $212000. Balance is $131132. This is a property that we intend to hold just incase the MiL needs to live close by within the coming years. Equity $80868
2. Rental (2bd/1bth) rents for $750, owned outright. Comps selling for $60ish
3. Primary Residence worth $345k, mortgage at $260k. Equity $85k. We have no attachment to this house. Property values are rising here. When I can reasonably list for $375k, we'll sell and downsize.

Total Real Estate Equity - $225k

Not counting cars and such, total net worth should be $496k

Other:
We own 2 2013 Toyotas. Bought Cash.

We're not looking to retire soon. We both enjoy work. What are we missing? Whats the next step?

[deborah]

You don’t carry zero debt. You have approx $400k debt, so have a net worth of approx $100k. Your income also includes your investment income, which should be somewhat more. Once your investment income is more than your expenses (including servicing your debts) you can retire.

[2Birds1Stone]

@deborah, he already subtracted the debt against the REI in the NW calculation.....

[bacchi]

Why so much cash? Do you plan to replace 3 roofs at once?

[ricky bobby]

Why so much cash? Do you plan to replace 3 roofs at once?

The cash is my wifes "security blanket". It makes her feel better to have those funds available immediately. We also use that account for saving for our next rental property.

[Greenback Reproduction Specialist]

With 3 houses, I don't think that is a crazy amount of cash..... Its amazing how fast that can dry up with a string of bad luck.