It goes without saying that receiving windfall money is always a welcome occurrence – but now that you have it, what should you do with it? Maybe you are already being pressured by friends to invest in a certain area or by family to spend it on some real estate, while you’d be happy to simply let it sit in your bank account. What is the best course of action to take when you receive a windfall? That answer may be different for everyone, but there are certain things you should avoid doing and other actions that are highly recommended by financial experts to protect yourself and capitalize on your good fortune.
What Is a Windfall?
Windfalls are not always massive lottery jackpots or large inheritances from a forgotten family member. They are sometimes unplanned for, such as a modest inheritance from a grandparent or a favorable legal settlement. On the other hand, you may be anticipating the windfall, but the actual amount involved is more favorable than you had thought. Such a situation might be the sale of real estate property for more than you expected or the result of cashing in stocks or bonds at a particularly optimal time. Typically, a windfall is defined as a sizable amount of money that has some element of surprise to it. Regardless of the source of your windfall, there are some definite actions to take to get the most lasting benefit from it.
Consider Payout Options
You may have payout options associated with your windfall and, if so, these should be considered carefully. It might be your best course of action to receive the payout in payments over a period of time rather than as one lump sum. This can also help you avoid squandering the money through impulsive, hasty decisions while giving you more time to study how to best invest it. If you or your immediate family is prone to irrational spending, then you should seriously consider payout options. In addition, receiving a large amount of money in payments rather than as a lump sum may discourage predatory friends and relatives who do not have your best interests in mind.
Do Not Make Hasty Decisions
Contact FBO Services today and let us help you get the most out of your windfall!