A: I'm confused. You and your husband make more than $300,000 a year and yet you have only $40,000 in mutual funds and a "fair" retirement account. What's up with that? It sounds like you do not have a handle on spending.
The money you have in mutual funds is not an emergency fund; it's an investment. Markets go up and down, and your $40,000 can become $30,000 before you know it. An emergency fund is money kept in a federally insured credit union or savings account; it is invested in safe deposits that do not fluctuate in value. You need to figure out where all your money is going and make sure you have eight months' worth of living expenses in an emergency fund.
And forget about getting a vacation home. You and your husband still have a big mortgage on your current home, and your retirement funds are lacking. You need to pay off the current mortgage and boost your 401(k) and IRA contributions before you even think about buying a vacation home.
It's not how much money you make, it's what you do with the money you make, and it sounds to me as if you have been spending it, not saving it. That has got to turn around right now.
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