posted by gut
It's hard to recommend any investments, right now. Probably why paying down debt is a good idea.
Normally, in this market environment, I'd be saying to plow into fixed income investments. But you'd be chasing risk above 3% yield. Short-term and Intermediate-term duration debt should do well in a bear market, especially after they cut rates back down to zero. Certainly better than buying equities that will donk-off 30%+ in the next year or two.
Anyway, money market accounts usually offer about the worst returns you can find. 6 months of savings isn't that good any more - I'd recommend more like 12 months. But it doesn't have to sit in cash. At least put it in a short-term CD that gets you a little bit better rate. Sure, there's a penalty if you cash out early but only part of the interest (which might make it yield less than a money market, but that's only if you really need to cash out).
You might do better still, and more liquid, in a low cost bond fund. Vanguard has a short-term treasury ETF that returned 3.5% last year (keep in mind that's after two(?) rate cuts). It averaged about 1.5% over the last 3-5 years. Vanguard also has a short-term Corp. Bond ETF that did 7.0% last year and has averaged about 3.0% over the last 3-5 years.
Top CD and money market rates right now are @ 2% right now. Keeping money in a bank only makes sense if you're getting some sort of packaged discount, like waived trading fees or lower mortgage rates.
Only real debt is the mortgage @ 2.75%. I don't know how much sense it makes to be in a rush to pay that down right now? My wife has a car loan but its 0%. That's it for debt.