Change your life by
managing your money better.
Subscribe to our free weekly newsletter by entering your email address below.
Subscribe to our free weekly newsletter by entering your email address below.
Few Young Workers Take Heed of Need to Start Saving Now Monday, March 6, 2006 from USATODAY.com by Sandra Block. Southern Discomfort: Troubles at Atlanta Hedge Fund Snare Doctors, Football Players.
March 9, 2006 from The Wall Street Journal by Ian McDonald and Valerie Bauerlein.
Unlucky Lottery Winners Who Lost Their Money March 9, 2006 from Bankrate.com by Ellen Goodstein.
What is a Financial Windfall?
A financial windfall can be defined as an amount of money that people would be hard-pressed to earn through their own efforts. Examples of this are winning the lottery, receiving an inheritance, life insurance, or selling property.
Steps To Take If You Come Into a Financial Windfall
1. Create breathing room for yourself.
a) Attain a CPA and get tax advice to meet immediate tax liabilities.
b) Avoid impulsive decisions!
c) Make a wish list of everything from houses and cars to vacation and education goals (now lock this list up for 30 days to give you time to settle down).
d) Immediately pay down high interest rate credit cards.
e) Spend no more than 5% on wish list items in the first 6 months.
f) Set aside enough money to cover living expenses for 6 to 12 months.
2. Screw your head down to your shoulders.
There is a huge psychological impact when receiving a financial windfall and the adjustment period is longer for some than others. It is common to experience elation, fear of losing the money, depression, distrust, lack of confidence, intimidation, a sense of loss, feelings of unworthiness, numbness, confusion, and even a desire to give the windfall away. To soften this psychological impact, try taking a break from decision-making. Allow as much time as possible before making major decisions about money or life. Also, consider volunteering for the less fortunate to help you put things in perspective.
3. Organize a Financial Team.
Begin by educating yourself. Read books on sudden wealth and investing. The more you learn, the better your prospects are for a successful relationship with your money. When you feel confident enough about your knowledge level, organize a team of financial advisors. This may include a financial planner (we recommend a “Fee-Only” Advisor), an accountant, and an estate planning attorney. Interview prospective financial advisors in person, asking questions about their professional credentials, the amount of experience they have, and whether they work based on commission or a set fee. Resources for building your Dream Team Financial Advisor: The National Association of Personal Financial Advisors (NAPFA); All “fee-only” advisors.
Accountant: American Institute of Certified Public Accountants.
Estate Attorney: The American College of Trust and Estate Counsel. Lawyers skilled and experienced in estate planning.
Subscribe on these platforms or wherever you listen to podcasts for new episodes every Friday, live streams every Tuesday at 10am CT, and new highlight clips throughout the week.
Financial Order of Operations®: Maximize Your Army of Dollar Bills!
Here are the 9 steps you’ve been waiting for Building wealth is simple when you know what to do and…
View Resource
Can This Annuity DESTROY Your Retirement?
Read MoreThe IRS Just Changed the Rules About 401(k)s (What You Need to Know)
Read MoreWealth Multiplier Revealed: The Magic of Compound Interest!
Read More
How about more sense and more money?
Check for blindspots and shift into the financial fast-lane. Join a community of like minded Financial Mutants as we accelerate our wealth building process and have fun while doing it.
It's like finding some change in the couch cushions.
Watch or listen every week to learn and apply financial strategies to grow your wealth and live your best life.
Subscribe to our free weekly newsletter by entering your email address below.
