Reply To: Best use 250,000
Before using a target date fund, I would check the fees, some are ridiculously high. I have my investment money in a Vanguard S&P 500 index fund, the lowest fee I could find at the time. Managed funds of any kind will have higher fees, to pay for all that expertise, and meta-analysis of their results over long term finds that managed funds do no better, after fees, than the market as a whole. See Nate Silver’s book, “The Signal and the Noise”, Chapter 11, especially sub heading “Buy High, Sell Low”, page 364 in my paperback version.
Also, I would consider paying off the other rental property, even though it would take half of your pot. Can you realistically earn a guaranteed 3.75% in whatever you put your 250K into? Or even 3.75% less what your tax deduction is for the interest? Then, use the money you are currently paying on that mortgage to pay into the investment fund you put the rest of the money in. You will then be paying yourself the money you currently are paying a bank. And, be debt-free with income property, a retirement fund, and no worries! Sweet!