Cash-heavy + Windfall

My spouse and I, late 30s, have recently come into a windfall of ~$2 million after taxes due to the sale of spouse’s business. We have two small children under 5. Currently live in a VHCOL area and considering a career move to a less expensive but still HCOL area where our combined household income will be approximately $190k/yr on just my income with my spouse no longer working but looking to either go back to work or start a new business eventually.

We currently rent and assuming the move happens, our top goal would be to purchase a home (~$1 million). Beyond this, we’re aiming to optimize the windfall and secure our financial future. We have a solid understanding of investing fundamentals but we’re both very conservative with money. There’s a bit of “paralysis by analysis” happening with us and as a result we’ve become very cash-heavy in the last year or so, amassing a lot of cash in a HYSA not including the windfall.

The windfall is currently parked in a CD while we establish a plan. We already know it’s not ideal to sit on a pile of cash, just taking things slowly until we develop a diversification plan that takes into account our goals. Current uncertainty of the U.S. economy is also not giving us the confidence to jump into the market with everything we’ve worked very hard for.

Other relevant details excluding the windfall:

No debt.

Combined 401k: ~600k (maxing out every year)

Checking: ~100k

HYSA: ~500k

529: ~75k

HSA: ~12k

Thank you!