Thank you so much!
1. Not necessarily because I don't think it's realistic to become FIRE before having kids...I think if we were SUPER dedicated to it, it would take 8 years.
2. I would like to work part time when we have kids...so our income would significantly go down : /
3. I think FI...I'm just worried that index funds are more of a gamble than paying off the house.
Thanks for the recommendations/advice! Do you think we are on a good track to FI?
1. I don't blame you. My wife and I have have a 4 and 1 year old and are working towards FI along the way.
2. Good for you. Having a part time parent would be helpful for sure. Lots of value that goes beyond dollars and cents.
3. I understand the worry about index funds vs the security of owning a home, but if you say you lean towards FI, then index funds get you there sooner.
The risk in stocks is short term ups and downs right(short term meaning years)? So, the longer you own them the less risky they become right? So, doesn't waiting to invest in stocks out of feelings of fear actually increase your risk since you'll own them for fewer years? Owning stocks for a long time = more expected return and reduced risk. Owning for a short time period = increased risk and reduced expectation.
Now, if you are so adverse to the risk that is associated with stocks, than maybe you could head over to Afford Anything and check out Paula Rant's info on owning rental properties. Lot's of people go that way to become FI. In fact, on average it gets people there quicker and index funds, the downside being that once you are FI it's higher maintenance, so less passive.
But I don't think that's your inclination from reading your initial post, I think you are more of an index fund leaning person, right?
Oh, and yes, I do think that you are on a good track for FI. A great track actually! I'm splitting hairs most likely in all the stuff I wrote above. Whether you pay off your house first or not will likely only change your FIRE date by a year or two, which in the grand scheme of things isn't that big of a deal. You seem to be doing awesome!