Plan an investment strategy that will keep you financially secure. Plan on a number of sources to finance your retirement. For many retirees, that will mean a three-legged stool of Social Security, a traditional pension and the income from your own savings or retirement plan. Your standard of living will likely depend on how well you manage the financial resources under your own control. It's not how many dollars you have now that matters, but what those dollars will buy in the future.
Inflation erodes a dollar's buying power over time.
Factor in a steady rate of inflation when investing your lump sum. Aim for earnings that outpace the rate of inflation. Diversify your retirement investments. Don't put all your eggs in one basket. Diversifying means balancing your investments by placing some money in conservative investments with a guaranteed rate of return and some in more aggressive investments that carry more risk but have a potential for greater returns.