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[quote=Anonymous][quote=Anonymous]I would start to max out your retirement at work, both of you, and then use some of the 100K to backfill that amount.  For example, if you need to up your contribution by $300 then replace that with $300 if you need to.  You will get an immediate return of about 25%, or your tax rate, because that amount will be a deduction for taxes.  It's a sure investment just based on the tax deduction, but also you will get compounding interest over time.  You'll be surprised how soon you will be 50 and looking at your retirement accounts and wishing you'd put more in while you could...

Then I would open a Roth IRA in your name and in your husband's name.  That's a great vehicle to both investment in and have it be somewhat liquid.  Put the max in monthly (around $500 each).  It's somewhat flexible and also tax advantageous.

Do you have kids?  Then do a 529 for the state tax advantage up to the $ amount (in DC it's $4000 per year).  So about $320 a month per kid.  Again, the State tax deduction alone makes it a good investment.

Beyond that, I would save 6 times your monthly expenses in a fairly cash/liquid place (maybe an on-line bank in a money market).  That way it's liquid but not tempting to just blow on a vacation or something like that.  That's for emergencies only -- medical tragedy, one of you losing a job, etc.

If there's anything else, invest it systematically over time in ETF funds in a wide variety of sectors using a low-load broker like Vanguard (www.bogleheads.org).  Don't touch it.

Good luck!  [/quote]

Except did you actually read the OP?  She said a large chunk of it is emergency fund and down payment for use in a few years.  You don't want to put that money in a 401k, IRA, or 529. [/quote]

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