recently and my mom is 58 and they are not very prepared for retirement. They have $25,000 cash they want to invest now but I don't know where to put it given the stock market is so high right now. Any recommendations? I am quite familiar with Vanguard's index and target funds but not their actively managed funds. Ideally, my parents will retire in 5-10 years.

They have an alternative investment where they could earn a guaranteed 5% return for 10 years. Is it better to go with the guaranteed return of 5% or go with a stock/bond split and hope for more? The 5% return investment is a personal loan to a friend who needs about $25,000 to finish paying a balloon payment on a mortgage.