What Are Some Tips for Handling a Financial Windfall?

October 2, 2020
by Team SESLOC


First, consider putting the money into a safe, liquid account such as a savings or money market account until you have time to take stock of your situation. Don’t spend or invest your windfall until you have a chance to:

  • See a tax professional and analyze the tax-consequences — you may need a big portion of what you have received to pay taxes.
  • Consider how the windfall affects your overall financial situation.
  • Create a budget.
  • Speak with a financial professional to help you decide the best way to invest.
  • Consult with an estate planning attorney to create or update your will and other necessary documentation.

You should also guard against those who offer get-rich-quick schemes or otherwise want to share in your windfall. If you have hired an attorney or other professional to help you manage your new wealth, it might be a good idea to refer all of the requests that you receive to that person.

Often a wise financial move, no matter the size of your windfall, is to pay off high-interest loans such as credit card balances. Then, only after you have carefully considered how your circumstances have changed, indulge yourself with something you’ve always wanted. Spend wisely, though. If you plan well and control the urge to spend lavishly, your good fortune could provide you will financial confidence for many years to come.

SESLOC members have access to our knowledgeable CFS* Financial Advisor, offered through SESLOC Wealth Management »

Prepared by Broadridge Investor Communication Solutions, Copyright 2020.

SESLOC Wealth Management is provided through our relationship with CUSO Financial Services, L.P. (CFS)* an Independent Broker-Dealer and SEC Registered Advisor formed for the express purpose of serving Credit Union member’ investment and financial planning needs.
*Non-deposit investment products and services are offered through CUSO Financial Services, L.P. (“CFS”), a registered broker-dealer (Member FINRA/SIPC) and SEC Registered Investment Advisor. Products offered through CFS adre not NCUA/NCUSIF or otherwise federally insured, are not guarantees or obligations of the credit union, and may involve investment risk including potential loss of principal. Investment Representatives are registered through CFS. SESLOC has contracted with CFS to make non-deposit investment products and services available to credit union members. CFS and its representatives do not provide tax advice. For specific tax advice, please consult a qualified tax professional.

Share this post

Like this post