Reply to If your HHI went from $350k to $900k +

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[quote=Anonymous]This is hypothetical, but our HHI is $350k, so I can tell you what we would do.  Important to this is that we just moved, and neither need nor want to move again.  I'll assume you will keep, after taxes, 50% of the $550k increase, so $275k.

Year One:  Top off college fund with $50,000; Top off new car fund with $25,000; Increase travel fund by $25,000; $175 into laddered CDs (serves both as emergency fund and cash for eventual retirement).    
Year Two:  $175,000 into mortgage; Invest $75,000 according to current plan, using DCA; Extra $25,000 into travel budget.
Year Three+:  Repeat until mortgage paid off.

After that, look for ways to creatively invest - residential or commercial real estate.

As may be apparent, we are conservative, and live a very nice life on $350,000.  Yes, I may be able to get better returns investing v. paying off the mortgage, but maybe not, and being mortgage free is appealing.  And if you live a nice life now, why start adding to your expenses.  More travel would be nice, so I've allocated for that, but I don't need a Maserati, or a bigger house.

I'd drink better whiskey, though.  [/quote]

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