If the money is going to be invested in a taxable account and not used for 10+ years, then a target retirement or balanced fund is not a good idea. The reason is that the income generated by those funds gets taxed as ordinary income.
Now you may wish to have the $175K invested so that you have 50% in equity funds (say index funds split between large cap, small cap, foreign, etc) and 50% in fixed income funds (intermediate bond, TIPS, GNMA, money market). But if you do that see if you can get the fixed income side of things in an IRA or 401K.
As an example, supposed you $80K in an IRA in the S&P500 index fund. You could exchange that $80K into a bond fund and buy $80K of an S&P500 index fund with your taxable money. That still leaves you with $80K of S&P500, but a nice $80K earning dividends tax-deferred in your new bond funds in your IRA. You could then purchase $80K of a foreign index fund in you taxable account. So now your taxable account has $160K of index funds and your IRA has $80K of bond funds.
So think a little bit about taxes when you do this investing. Think alot about asset allocation and which kinds of assets to have in which accounts. I would be advising something different if you needed income now to live off of.
For more help on this kind of stuff, I have found
the Diehards board immensely helpful. The folks there give the absolute best free personal asset allocation advice on the web.