Well, it sounds like you have your situation well organized. The only thing you lack now is INCOME. Given the demand for labor in this economy, the best thing EACH of you can do is TAKE A JOB. Any job. l Two people should be able to bring in $3,000 net income a month after taxes. Then you won’t have to dig into your savings!
Don’t you dare touch the 40(k). And there is NO place to earn high returns these days without high risk! So leave your money in savings and go back to work! If you can postpone your Social Security to age 70, you will come out far ahead in the long run!