I think the overextended thing is relative, you can break the so called investment rules without being overextended.

If you can loose and not change your life style, your not overextended, If you have everything in one investment and are happy with were you are, then good for you, the banks and financial advisors will never tell you that, but they make a living off of moving around your money, i can move around my money for free.

sometime you just have to believe what your are doing is right and go for it.

GLTA