Depends on what their financial picture looks like and how they feel about debt. If it was me I would do the following. 1) Pay off all consumer debt, cars, cre

Depends on what their financial picture looks like and how they feel about debt. If it was me I would do the following. 1) Pay off all consumer debt, cars, credit cards, personal loans, etc. 2) I would set aside at least 50% of what is left for long term savings 3) Depending on where you are in child's college savings I would put some money there maybe like $50k and let compounding interest do its thing 4) I would create a Toys and Play fund (aka TAP fund) say $100-$150k, this is for vacations and toys. Invest this money and every few years take out some of the gains for a really nice vacation or toys. Anything left I would personally put towards the mortgage but that is because I HATE debt, not everyone feels the same though. I will say this, that TAP fund can really be AMAZING for enjoying life. I don't know of anyone but me how has one as I started one by accident many years ago and it pays for all my vacations and cars now. Give it a few years to get going and you will be able to have several amazing vacations a year. One benefit of this fund is that it is setup specifically to ENJOY life. I now have zero guilt spending the gains in that fund. Some people are great at savings and become bad at spending/enjoying. I am one of those people. Having this fund removes all guilt, hesitation, or family friction when it comes to buying hobby items or nice vacations.