In
my circumstances, I'd pay off my house, replace one of the cars, and pay off my kids' student loans. I'd put the rest into a retirement fund, and see if I had enough to retire now.
In your circumstances, I wouldn't pay $500K for a house. Out here, $500K doesn't get you a "decent house", it gets you a mansion. You, your wife, and your baby probably don't need 5000 square feet of house. (Seriously, $500K can get you that. And seriously, don't do it - it's a huge waste.)
The other part that bugs me about what you propose is that "I want to work for myself", "no boss", "I feel super lucky to give it a shot" is not a plan. You can waste a lot of time and money trying to figure this out - certainly you can burn through $100K. It's far better to have a realistic plan before you start, even if you don't have all the details figured out yet.
In your circumstances, I wouldn't pay $500K for a house. Out here, $500K doesn't get you a "decent house", it gets you a mansion. You, your wife, and your baby probably don't need 5000 square feet of house. (Seriously, $500K can get you that. And seriously, don't do it - it's a huge waste.)
The other part that bugs me about what you propose is that "I want to work for myself", "no boss", "I feel super lucky to give it a shot" is not a plan. You can waste a lot of time and money trying to figure this out - certainly you can burn through $100K. It's far better to have a realistic plan before you start, even if you don't have all the details figured out yet.