Just a couple of other general notes. In my mind, I sense a big red flashing warning sign regarding what you mention regarding your real estate situation. You mention that you've paid off "almost all your debt", but still have a $250,000 mortgage. In my mind, that is a big hunk load of debt.
You mention that you paid off most of your other debts by virtue of a red-hot property market. I'm interested in how you accomplished this, because a red-hot property market on its own generally doesn't pay off debts, unless you are generating cash (i.e. rentals or flipping properties).
My sense is that you should be paying off that mortgage a long time before you start investing in mutual funds.
I don't know if it's similar in the US, but with home builders here in Canada, you can lock in the home price at time of purchase, thereby appreciating on your existing property and the "to-be-built" property at the same time. In that fashion we sold the condo we bought for $128K for $250K as we moved to our current home. We are building again and should be able to sell for $500-525K (purchased existing home for $293K). The home we are currently building is $513K, so at the worst, we'll take on a slightly higher mortgage, at the best, we'll start reducing it now. As I mentioned, I expect the market to remain like this for at least 2 years, if not more, and we will build again once we move into the next new home.
I'm certainly not opposed to paying the mortgage down further, but I felt the gains by investing now would outweigh the short-term expense of interest on the mortgage (currently 5.18%).
Either way, that's the kind of advice I'm looking for. Admittedly, I've spent much more time looking at investing, and relatively little considering my mortgage. I don't intend to start down any path until the end of April or May (or later if prudent), so I'll spend a lot of time reviewing all the options before committing.
I'll update on your previous post later this afternoon.. just popped in quickly while here at work!