I'm in my late twenties and am finishing up college and then going to grad school. I recieved a life insurance settlement, and after buying a car, a townhome for $185k and paying off debts I have about $175k left. I don't know anything about investing but have been reading every book I can get my hands on. At first I thought it would be best to invest for income doing a 65% bonds, 20% money market, 15% stocks, in order to help with living expenses until I finish school, while preserving my capital, and then when I start working, change my investment portfolio to accumulate growth. However, many people told me I should set aside money for living expenses and tuition for the next few years (which would be at least 75k) and invest the 100k right now for growth. Others say I should do that, but refinance on the house and add that to the investment. What would you do?