The main issue is keeping this money from being taxed. You could pay up to 41% federally on this, not to mention state taxes. The CD ladder is great, but it would require drawing out the lump sum to set up, and the $3,300 a month assumes a million dollar investment. Reducing taxes on this should be your primary concern - secondary is making money on it. Once you have it, make sure you invest as much into your 401K that your employer will match, then max out your Roth IRA every year, and take the rest and find either tax free or tax deductible investments.
Another thing to look at would be real-estate, especially with the market as soft as it is.
No matter what you decide to do, you need to make sure you educate yourself on tax laws. Talk to a flat rate or hourly estate planner, not so much a financial adviser. The estate planner will tell you how to keep things from being taxed and what investment vehicles will help you in that area the most. The financial adviser will tell you what in those investment vehicles are most beneficial to your particular situation.
If you invest this money right and just keep up with the market - which averages just under 12% annually since 1935, you should have roughly $100 Million when you turn 63 without investing anything else the rest of your life.
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