Hi guys!
This may be a silly question, but I'm trying to figure out how to start the passive income before retirement? The only thing I can see is rental property once the mortgage is paid down or index funds.
Right now, we have $250k in our 401k with 17.5% invested annually and we are paying down a $368k mortgage ($750-800k market value). We are 42 and 45.
We won't be receiving any income before 59 1/2 from the 401k and we live in our house, which we don't plan on moving for 15-20 yrs.
I am a new reader, so haven't made it through all the posts yet. Is our best course of action to buy a rental property? Do we invest in index funds as well? Since we are trying to pay off our mortgage in the next 7-10 yrs, we are throwing all extra money there. Our savings rate is about 50-55%.
Sorry if this sounds like an obvious question, but I am having difficulty with this next (first?) step.
Thanks!