What to do with $200k

[hightower]

Surprised people are saying to buy the car.  I wouldn't want to drop 100k on a car, no way.  That's like instantly throwing away $30k after you drive it for a year.  Then a kid throws a rock at you as you're driving around downtown...oops, there goes another 5k.  I mean, don't get me wrong, I like Teslas, but 100k is too much for a car unless you have a very high net worth ((like 10 million and up) and can afford to take 5 digit hits without getting stressed about it.  The only way I would say it's ok to buy the car is if your husband has no other hobbies or interests and this would be his hobby...to own an expensive sports car.  I've spent a lot of cash that was a total waste of money on hobbies over the years and it's fine because it's stuff that brings me joy in life.  It's hard to argue against that.  But, if it's just to get to and from work, then no way, too much.

You're doing well financially now, don't change the habits that got you here.

I would take the 200k and hang on to maybe 25-50k of it (for an efund and to have some cash reserves for investing opportunities as they arise), but the rest should be invested.  Index funds are fine.  If you have any interest in some alternative investments, you're at a point you could start doing that (real estate for instance).

I don't see the point in paying off the mortgage.  It's not like you're having any cash flow problems and with a thriving private practice, you have no worries of job security.

What are MLG and Origins?

[MPMD]

Pay off your house.

Rest is your e-fund.

Yeah yeah yeah, low interest rate, tax deductible etc etc etc.

You would be 100% debt free which would be an incredible milestone.

[Benji]

Agree with MPMD. The overall mental value behind getting to "debt free" sounds better than any of the other alternatives. From there you may have a different approach to life and money in general (though it sounds like you have been doing excellent so far and may not want to change things).

I think Teslas are awesome too, but wouldn't drop 100k on one. I'd look for a recent, used Model S that has all the hardware/software capacity for autopilot installed or is capable of the upgrade and go for that. Limits that 30-50k hit on it being used. Plus, the tax credit isn't what it once was.

[runfast00]

Pay of the mortgage first

We finished of the last 50k of our mortgage at the end of 2018

There are few feelings better than being debt free

[cutis]

Agree with BCBiker that its not a great idea to have this much cash..which is why deciding what to do with it is stressing me out. We had so much set away for the first year of my new practice thinking we would live on that and take a minimal salary but I ended up continuing 1 day a week at my previous employer so we didn't have to use it. Also had planned/saved for purchase of new car. I've been working too much and should not have let the balance get so high.

[DCdoc]

The only thing worse than having too much money, is having too little.