I suggest you treat this as a windfall and keep it safe. Right now, just put it in a money market account at your bank. It won’t earn much interest — less than 2% — but you won’t lose any!
Then, pay off all your debt — except your mortgage. No sense in paying higher interest on credit cards or auto loans.
If you are still working, you can open a non-deductible Roth IRA and put in up to $7,000 since you are over age 50 — assuming you earned at least $7,000. I would contact Fidekity ((800-FIDELITY) or Vanguard (800-VANGUARD) and open the IRA directly with them. They will guide4 you over the phone.
You’ll have to chose an investment for your IRA. I would suggest their Equity-Income3 fund — a petty conservative investment. Or, you can put that $7,000 in a money market mutual fund in the IRA — and ask them to move $500 per month into the equity/income fund. That will spread out the risk.
Keep the balance in your bank money market deposit account. It may come in handy! So don’t sp0end it!