Give me a reality check. ( My retirement plan )

[Zachary D.]

I am 36 and married with a 9 month-old-baby in north Texas. I am an independent contractor making 86k a year before taxes and I owe 192k on the home I bought last September. I do not know how long my position will continue to have funding, and may have a corporate position in the same company in the near future. I have some worries about my staying power. 

PLAN 1:
- Buy a different home or duplex every couple of years to build a portfolio of properties for cash flow and equity. 
- Do not invest in stocks or bonds. Use all funds for living expenses and real-estate investment. 
- This plan is easy for me to stomach. 

Benefit: Achieve goal of exploring different cities. Gain a lot of equity. Less volatile than stock market. Equity increase curve likely better than 401k.
Detractor: Early withdrawal penalties, market could drop at a time when I need the money to live on. No real-estate equity. Would like have to continue working full time.

PLAN 2: 
- Follow the 'Fi' community and invest everything into a total stock market index fund through my 401k with the intent of taking equal separate draws to retire somewhat early. 
- Do not invest in real-estate, unless using equity of own home to purchase additional ones

Benefit: Easier to cash out that real-estate. Simple. Easy for me to stomach. Would be able to retire sooner rather than later. 
Detractor: Early withdrawal penalties, market could drop at a time when I need the money to live on. No real-estate equity. 

Thank you for any ideas or insights you may have!

[Mark S.]

@Zachary D., I would consider doing both.   It’s not an all or nothing.  The two crowds often are all-in on one or the other, but that doesn’t mean you can’t do both.  I like having options and am doing both myself.  Feel free to PM me if you’d like to chat in more detail.