Quote Originally Posted by Dreadnaught View Post
I agree with the gist of what (I think) EyeKhan is saying. I think debt reduction could be good. But borrowing is also quite cheap (I'm refinancing my 30 year at 3.75 just this month). But I don't think putting the money into CDs is a good idea. I'm not sure what bank promised you a 3% CD rate, but I'm candidly a bit skeptical there.

If you don't want to put all the money into reducing your debt, there are conservative stock choices that would be better places for that money. Even putting a chunk of that into a cheap Vanguard dividend fund will likely bring you more value over time if you just plop it there and forget about it.

Warren Buffet wrote something interesting about this just this week.It's a bit long, but I actually think it does add something to your particular question about what to do with cash.
Off Topic: While I like and agree with that logic by Buffett, the one thing he doesn't cover is land [although VR has already bought that]. Off Topic: While gold in itself isn't productive, Buffett doesn't exactly cover the use of land (besides as a business for farming etc) and that somewhat is in that it is a finite resource with increasing demand. Population growth plus the breakdown of large families into smaller ones leads to an increase in demand. New gold gets mined every year, but that isn't true with land.

On Topic: Seems like you've got some good advice here VR. Personally I would like to pay down the debt I would suspect, but I don't know about 401K's etc so can't give too much special US advice