I'm trying to figure out my next steps in terms of income, investments and asset allocation. I'd love for you all to tell me about how you would personally handle this. All of these are hypothetical round numbers to make the math easier, so actuals are materially different.
Annual spend: $80k
Current pre-/post-tax stock investments: $1.5M.
Dividend + interest income (from above): $40k
Own house - no mortgage.
Own two rental properties with mortgages: Cash flowing about $6k per year.
Fully max 401k, backdoor roth IRA, HSA, contribute to 529.
Vested stock options of $500k. Any exercising of stock options will be at the highest tax rates. Fortune 100, very stable company.
1) Cash out stock options and put it into an index fund
2) Cash out stock options and pay down rentals
3) Cash out stock options and buy more rentals
4) Don't cash out
5) Other - You tell me!
Again, this is what you personally would do.