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[quote=Anonymous][quote=Anonymous][quote=Anonymous]You know yourself best. If keeping that much $$ is going to tempt you into spending habits that you don't want, then paying off your mortgage is the smarter choice.

You could pay off your mortgage then set up an automatic monthly transfer of an amount just under your old mortgage payment into to an investment account. And then don't touch that account until you really need it. [/quote]

Op here.  That’s a great option - my plan  would be to push the old mortgage payment into the 529s.  [/quote]

This is not a good idea -- do NOT pay off a mortgage under 3%. First, do a backdoor Roth and make sure college is funded -- if not, fund a 529 WITH the money you are receiving, not with your monthly income after paying off the mortgage. Also, take a great trip. Then invest the remainder of your windfall in a low-cost index fund. If you get the urge to spend it, know that if you sell <1 year, you'll have to pay short-term capital gains (your income tax rate). If you sell >1 year, you pay long-term capital gains, i.e., much less in taxes. Let that be your motivation to keep it in the market.[/quote]

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