It's a good problem to have, but a problem nonetheless.
I bought a house (London) last year, gave all my cash, except my 50 bitcoins. Fast forward end of the year I sold all my bitcoins, for £650,000.
My mortgage was around £500,000 at 2.5% for 5 years, with option to early repay 10% with no penalty every year. I paid around £90k towards house principal with no penalty. Another £110k has to go to tax :( My 9 to 5 job as software consultancy company earns around £140k/year, my wife and me being almost equal owners. We draw £680/month salary + dividends up to $45k/year/person, below the max dividend rate. Rest will stay in company (plan to take £10k/person as pension directly from company). Wife stays with kids currently. Have 2 kids and expenses are around £20-25k/year plus £2.2/month mortgage payment.
That leaves around £450k cash to use somehow. Options are: 1) Stay safe in NS&I 2) Bonds or equity indices in Vanguard/Fidelity etc 3) Pay mortgage (just 10% of remaining balance per year for free or around 1% early repayment penalty per remaining year in fixed term). 4) Buy some property
My goal is to be able to retire (that for me means survive off passive income like Mr Money Mustache, try some business ideas etc, not sit doing nothing).
I'm a bit confused by all the possibilities. Pay off house and be able to save a lot per month and invest it aggressively? LKeep it safe in NS&I and wait for economy cycle to finish to buy equities in half price and watch it double in some years? Keep a mix of 1/3 year fixed term deposits and bonds and invest say £50k/year to equities while paying the 10% penalty free repayment to the mortgage? Seek professional help?