1.5 mio is a rather large sum of money so I suggest you take some time to think carefully about how to deploy it. Firstly, let's look at your liability. How much are you paying in terms of the mortgage monthly? 1 mio invested wisely would provide you easily $40k/annum @ 4% which might be more than enough to take care of your loan, and perhaps even your basic expenses, with another $500K left over to have as a rainy day fund/warchest. If you are paying lesser than 4% interest on your loan (which you should be) then it probably makes more sense for you to invest your money conservatively and use the returns to settle the loan, rather than paying down the whole loan. As for what asset classes to invest in, you would want to consider your risk appetite, combined with your preference of asset classes to determine how to deploy your money. Each asset class has a risk/reward associated with it and you should sit down with an advisor to understand all options available before committing to anything. Ideally, a good way to deploy the funds would be a mixture of income-producing bonds, equities, UTs, etc, which can comfortably yield 4% without too high a volatility. The allocation of each asset class will be a matter of personal preference and risk appetite. If you would like to find out in detail about the options available to you, you can contact me at [email protected]
and I will see how I can assist.