I'm still pretty new to the savings/investing/Mustachianism game, so I wanted to run my rough plan by some people smarter than me.
A little about us financially. My wife and I both have high W2 incomes, max out our 401(k) plans (I can put in $53,000 per year because I am self-employed, the wife gets about $25,000/yr including her match), and we just finished paying off my $150,000 in student loans back in September of 2015. Ever since then, we've been accumulating money in our bank accounts deciding what to do next. We currently don't have an HSA as an option, and we're beyond the income level where we can contribute to a traditional IRA with tax deductions.
Goals:
Likely retire early or cut back to part time work at some point in our early thirties (I'm 28 and the wife is 26). We plan on starting a family soon, and we love to spend time with family and camp (mostly backpacking or canoe camping).
Pretty passive income. I don't mind the idea of looking for rental properties, but we almost definitely do not want to manage them. We value our free time a lot, and aren't looking for property management to be a part time job.
Reasonably stable cash flow, but without overly sacrificing long-term total returns.
Rough plans:
Max out both 401(k) plans (~75-80K/yr). Mine is invested in VTSAX(60%), VTIAX(30%), and a small position in VGSLX. My wife's options aren't as good, but she has hers in a higher fee index fund and about 25% in XOM.
With after tax money (probably around $80-100K/yr), we would like to invest in taxable Vanguard accounts and in real estate. Does it make sense to have a rough guideline of buying VTSAX when the p/e ratio is below 18, and buying real estate when we find a particularly good deal and/or when the stock market p/e ratio is higher than 20 or so? I'm moderately leery dumping a ton of after tax money into index funds currently with the high valuations. Like everyone else, I would like my money working as hard for me as possible.
I realize my wife and I are in a great position with our incomes, and I don't want to waste this potential. We both have pretty simple tastes, and like simplicity and freedom more than the allure of fancy stuff. How can we best take advantage of our situation? By the way, we live in Houston, TX, and would likely be investing in real estate locally. Thanks for the help!