What to do with $500K?

Why you wish to stay there is beyond me my friend, I just moved from NY to NC and my eyes have been opened to just how much they tax you there, but to each their own. I will say that if you have that kind of scratch, real estate my friend, NY is one of the few areas that has kept values pretty well. Don't go overboard, maybe a 300k home, but don't go over 20 years on the mortgage, your just throwing money away at that point, the rest, I'd put 100k is a money market, nice, safe, solid investment. put 50k in a mutual fund, then take 50k and put it in a real beaten up stock, citi, bank of america, wachovia, and forget about it! Check it two years and enjoy the profits, good luck

That's a really hard question to answer without a lot more information. For example, are you planning to stay in New York for many years? If so, now might be a good time to buy a home. If you're not sure or are planning a short stay, be cautious. Home ownership can be a trap if you have to sell at the wrong time. In any case I'd put down on the house only as much as you have to and invest the rest -- preferably in a tax deferred account like a Roth IRA.