Hi everyone,
I'm new to the forums but have been a fan of the blog for a few years. I've recently inherited $17,000 and probably will have another $20,000 coming when the estate is settled in the next 6 months. My husband and I also save about another $4,000 per month. I had been putting the extra toward our mortgage ($118,000 at 3.65% with 10 years left) but am considering real estate investing. We both max out our 401ks and IRAs and have about $460,000 in Vanguard and Fidelity index funds (401k, IRAs). We are 45 and 48 with 6 kids ages 7-20. We pay about $7000/year for oldest kid's college and the rest will have free in state tuition thanks to geographic arbitrage. I still have $155,000 of student loan debt at 2.65% interest (12 years left). I am considering real estate to diversify our portfolio. We live in a college town so rental market is good. Questions are: am I on the right track of investing before paying off the mortgage? (Student loan is a no brainer) Is it a good idea to diversify with rentals and if so, where should I stash the cash until we are ready to invest in 1-2 years?