8 smart ways to spend a hefty windfall
Karen Altfest, executive vice president of L.J. Altfest & Co., a financial planning firm in New York, says to concentrate on three strategies.
"What you're going to do is think of it as pockets," she says. "You've got three pockets, divide the money in thirds. Take the first pocket and use it to pay down anything that you think should be paid down: your child's education, your debt, your mortgage. Get rid of something and make your life a little easier.
"Then, save for something in your future -- your next car, your vacation, your old age. Third is that you're a good person. Do something nice for yourself now. A vacation or something special you've always wanted," Altfest says.