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Hi from just answer. I'm PDtax.
The real truth is sale of a business means change. It is likely a financial gain, but you also lost your job. This is the second part of the sale. How to live afterwards.
Using terms like burn rate for personal finance make sense. Without the big income your business offered, you do have to revise your spending. Or you will go through the sale proceeds, which is more than most people accumulate in a lifetime.
You do have to tell your family that you ask will have to adjust. If you can't live on what that newest egg will earn you, you have to cut expenses. An 8% return yield 100,000 per year. Since that isn't enough, you have to cut expenses and decide what to do with the rest of your life.
Involving the family by letting them know is the only way to do it honestly. If you return to work, or opening a business again, it might be different in the future.
Good luck, and thanks for asking at just answer. Positive feedback is appreciated. I'm PDtax.