Reply to Networth Doesn't Mean Much in DC it seems

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]DH and I are fiscally conservative and try to save as much as possible.  We are 40 years old and work hard.  Our HHI is about 300K and networth is about $2 million.  Yet we don't live that lifestyle.  It feels in DC it doesn't go far at all.  We have a cleaning service that comes in once a month.  We go out to eat at mom and pop restaurants (so nothing fancy).  We drive and Corolla (3 years old) and Sienna (9 years old).  I still worry a lot about funding kids 529s.  We have 2 kids that will be heading to college in about 9 years and so far we have only been able to fund about $67k in total (for both kids).  There is no way that we will be able to pay for the kids college fully. On paper we looks good.

Mutual Funds $207k
Retirement $710k
529 $67K
Cash $55k
Property $1million (net of loans)

So why do I feel like we have to think about every dollar that we spend all the time?  Am I worrying for nothing?  Should I worry more?

We have 3 properties (2 rentals and 1 main).  The rental properties are paid off and our house has a 15 year mortgage.  It should be paid off by the time the kids are in their second year of college.  But I still don't feel that we are in a good enough position.

We do go a couple of vacations a year.  Nothing fancy.  Just rent a beach house or do a road trip.

I guess I am looking for advice and maybe someone can just tell me that I am worrying too much.  Or else let me know if I am not saving enough.

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You seem to have a lot of your money tied up in real estate.  Seems like you are saving enough for retirement, but maybe not for college - is that $200k in mutual funds earmarked for retirement?  If it's not in a restricted account, and you aren't counting on it for retirement, why not leverage that to help pay for college?  Can you cash flow college once the mortgage is paid off?  If not, then maybe refinance to a 30 year, keep paying the higher payment though until you need the extra cash flow for college.  Or a HELOC, as a pp suggested.  Can you sell the rental properties closer to college and use the profit for tuition payments?  My kids are younger than yours (the oldest just entered K last year), and we have almost as much as you do saved in the 529s.  So I think yes, you should be a bi concerned about how you are going to be paying for college, BUT, with your assets, you have options to make it work.[/quote]

I agree, too much of your net worth is in real estate.  Do a cash out refinance and put some of that money into 529s.

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