Do not consider upgrading lifestyle: A windfall amount does not mean that you should upgrade your lifestyle and help last the money in the shortest possible time. The idea should be to invest the gains in a manner that it starts providing a regular income stream to the family. The investment should be proceeded after ensuring goal and risk-based asset allocation.
Invest keeping future in mind: A person can invest the VRS amount either in Monthly Income Plans, Equity or debt funds of Mutual Funds, Post Office Monthly Income Scheme or Annuities. The investments should be made keeping in mind the tax obligations and returns.
Secondary income: A person who has opted of VRS should look forward to getting into employment if possible. In this way, the income stream from the invested VRS amount can become a secondary income for the family.
Do not use as a capital: If people wish to invest their VRS amount as a capital in a business, then it is one of the most disastrous ideas. Though a small percentage of the VRS amount could be diverted towards business, but staking everything is wrong.
Avoid the attraction: It will be not prudent to employ VRS amount towards buying a property or other superficial schemes, which bears the risk of eroding your income instead of creating one.