Our net worth is about $254,700.00 with the following breakdown:
Cash - 8%
Investments - 22% of total net worth, broken down:
85% - in an IRA, 401k 2040 fund, tsp 75% in 2050 and 25% in 2040 accounts - we are both close to maxing out 401k's
15% - vanguard VTSMX
Real Estate - 70% (several rental properties - also considering paying off the highest rate mortgage 6% and snowballing the rest)
Before commenting on solutions, I feel we should spend a bit more time on defining the problem some more.
Can you please comment on where the nightmares are coming from? For ex.
+ Management headache on rental properties
+ Vacancy headache on the rental properties
+ ....
This would help focus the feedback much more.
On the other hand, if you are just concerned about the imbalance in your portfolio, the question to ask is: what should be the right asset allocation?
This could be what you are after. But, to answer this question, one would need to know what your goals are for the next 5 yrs, 10yrs, 15 yrs, .....
For example,
+ if you want to retire in the next 5 years, one goal might be repayment of most debts on the rentals.
+ if you have 20 more working years left, then mortgage repayment may not be the most suitable goal.
So, please add some of your target goals to the question for a more focused feedback on asset allocation.
Hope that helps.