I would think about a worst plausible case scenario and how I can deal with it. For example one of you gets laid off and needs six to twelve months to get rehired and maybe gets a % TC cut. House drops x% in value and stocks drop y%. Nobody can tell you for sure what the future holds so you're going to pick your own figures for this worst case, recommendations are going to vary wildly. In my personal view California as a whole is not a great place for long term investment (i.e. house) since it is subject to net outflow of people and companies and an increasingly hostile tax environment - given how large an investment a house is, I would weigh this very heavily in my decision. But the comp and job opportunities are still arguably the best in the world right now so it's a balancing act.