Noob when it comes to investing

[noobie]

Hi I'm new to the forums and would love some feedback.  My wife and I are sitting on a decent sum:

650k cash
380k stocks (company options)
80k Vanguard 2040 retirement + Pension

Our only debt is our mortgage (250k remaining at 3.75%).  We're currently leaning towards paying off our mortgage (simplify) and allocating 100k for emergency (in a 1% account).  Once we pay off the mortgage, we should save about 25-30k a year.  The retirement funds grow by about 20k a year.

This leaves us with about 300k to invest.   I'd like to semi-retire in 5 years (I'm currently 40 y/o).  I would still work but most likely from home or start my own business.  We're thinking of buying gold or maybe some type of index fund but not sure where to begin.

[redcedar]

Could you elaborate on the 380k company stock options?  That sounds like a steep concentration of your overall money which could influence your investment mix for the 650k.

[noobie]

I purchased company's stock options offered to me.  They vest in a year or two.

We're also thinking of looking into rental properties.

[PhysicianOnFIRE]

You need an IPS! And probably a smaller emergency fund. I won't argue against paying off the mortgage. You might do better investing the money, but being debt-free is a wonderful thing.

Best,
-PoF

[MDM]

Consider a case study - at least for your own consumption, and you'll likely get more accurate suggestions if you choose to post it.

[Mother Fussbudget]

Consider a case study - at least for your own consumption, and you'll likely get more accurate suggestions if you choose to post it.

+1 on the Case Study suggestion - do that.  $650K in cash losing 2% annually to inflation is not a sustainable investment strategy. 
Paying off the house would at least keep up with inflation (housing appreciation tends to keep pace or slightly outpace inflation).

[marty998]

No need for gold, and when have you ever had to deal with an emergency that requires $100k cash upfront?

Split the cash between investments and the mortgage (if it is your forever home)

[MichaelB]

My thoughts: write a check for the mortgage and save yourself the interest--$9k per year at 3.75%. It's a guaranteed return. Go for the index fund, NOT the gold. Gold is really volatile, and shouldn't be more than a small percentage of your portfolio, and definitely not a core holding. I would think a $100k emergency fund is probably a lot more than you need, too.

[Tyler]

We're currently leaning towards paying off our mortgage (simplify) and allocating 100k for emergency (in a 1% account).   
...
We're thinking of buying gold or maybe some type of index fund but not sure where to begin.

Gold is fine to have in a portfolio (it's in mine), but it's important to think of an asset allocation as a big-picture recipe rather than just a collection of random ingredients you like.  You might browse these for ideas. 

BTW, if you personally enjoy holding a good chunk of gold and cash, I'd recommend reading about the Permanent Portfolio.