Need advice for 200,000

[Chlopaige]

We just received 200,000 (after taxes) from my husband's company and we are trying to figure out what do with it (investment wise)

A little about us:
Husband is 40 and makes 220,00 a year
I am a stay at home mom (37 years old)
5 kids (2, 12,13,15,17)

Only debt is our house (we owe 369,000) interest rate is 3.4 percent.
We have 50,000 cash in an emergency savings account.

We own one investment property that is paid for (50,000.)

Including the 200,000 we reviewed, we have about 1,400,000 in assets (retirement plans, college fund, mutual funds, equity in house, etc).
We don't want to put the 200,000 on our mortgage because we have such a low interest rate. Should we buy another rental property? Mutual funds?
Any advice would be appreciated!
Thanks so much!

[97guns]

I'm a big fan of rental property provided the numbers are good, I like the income and I love the tax benefits

[Fishindude77]

I'd put a big chunk of it down to reduce your mortgage significantly.

[disneysteve]

How much are your basic monthly expenses? Is your 50K EF sufficient to cover those expenses for at least 6 months?

What % of income is currently being saved for retirement not counting any company match?

[corn18]

Take a deep breath, relax, and do nothing for a while. At first glance, you appear to be in good shape financially, so no need to rush into anything.

In order for us to provide any meaningful recommendations, we would need a lot more details. Disneysteve has started the queries, so let's start with answering his questions and go from there.

In the mean time, this might help as a baseline:

https://www.bogleheads.org/wiki/Managing_a_windfall

Tom

[feh]

You should simply follow your investing plan. If you don't have one, you should create one.

https://www.bogleheads.org/wiki/Bogleheads%C2%AE_investing_start-up_kit

[tripods68]

To me, if I had 200k in windfall while carrying a mortgage balance of $369K, I'd simply put all 200K towards the mortgage which reduced overall risk. Next, I'd Pay off the 169K remaining balance aggressively with your great income. The reason I would do this instead investing to mutual fund or buying a rental property, if in the future your husband losses his great income/job, you won't have to tap into your savings to payoff remaining debt. You essentially eliminated any type of financial risk once you are debt free. It also gives your family greater flexibility in event husband decide to do something else; pursue a passion but earn less household income. You can live anywhere in the country and pursue your dream whatever that maybe.