I'd say go with the mithril chainmail/shirt, a +1 composite longbow, elven cloak and boots, and spend the rest on a title and estate in an elven kingdom, being managed for you by your trustworthy younger cousin who was always more of a stay-at-home-reading-books kind of elf/halfelf. Guaranteed income, better relations with the elves and better reason for adventuring...fleeing the paperwork