SWAMI Case Study - Input please!

[acroy]

The Situation
-Age 37, wife 35, 6 kids
-Borderline SWAMI. Just over $500k net worth

Income
-$125k/yr gross
-DW earns an extra $3-5k/yr  (she’s a seriously badass fitness instructor, yes, while preggo too)
-60-70% savings rate (‘big’ side of frugal and can trim this pretty easily)
-Maxing out 401k, Medical HSA

Liabilities
-$120k mortgage at 4%
-$5k/yr property tax

PLAN:
-Continue SWAMI-hood till age 45; 8more years.
-Childbearing years will be coming to a close (yes we may have or adopt more)
-Net worth should be well north of $1m by then.
-Then FIRE!

While FIRED:
-Easily earn $20-30k/yr via ER hobbies. Plenty enough for utilities groceries etc
-Kids are homeschooled (minor expense, under $1k/yr)
-Will not pay for kids higher education: I earned mine and will not steal their opportunity to earn theirs as well. One of life’s best lessons IMHO.

FIRE Planning Variables:
1)To pay off or not pay off the mortgage? I’d (probably) have to draw down the ‘stache to cover mortgage once FIRED
2)Medical coverage? We are healthy thus far (thank God, genes & good living) and want a high-deductible, small premium plan for disaster insurance. This is the most ‘open’ question as Uncle Sam debates what’s best for me; cause obviously I don’t know and shouldn’t trusted with this decision (grrrr). I have a lead on $1600/yr $6k deductible plan but who knows if it’ll be available in 8-10-20yrs.

OK all you finely razor-challenged Mustachains, how ‘bout some nice constructive input on FIRE plan & variables?? Thanks in advance!!

[RichMoose]

You have 6 kids and are living off less $50,000 per year with a mortgage. There's not much more to say!

Your retirement hobbies will cover 50% of your current spending needs. I don't see any need to pay off your mortgage. You will have tonnes of free cash flow at your current spending rates if you do some quick math. $1M will generate $40k + $25k (hobby) = $65k per year income. Enough said on that.

I wouldn't worry now about health care since your Congress could change a lot of things in the next 8 years. It's really out of your control (aside from the tiny impact of your vote for 1 of 2 parties), so just plan to tackle it when the time comes.

[acroy]

I wouldn't worry now about health care since your Congress could change a lot of things in the next 8 years. It's really out of your control (aside from the tiny impact of your vote for 1 of 2 parties), so just plan to tackle it when the time comes.

thanks... Kinda what I'd figured but good to hear the thought validated :)