Difference between revisions of "Managing a windfall"

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==Common sources of windfalls==
 
==Common sources of windfalls==
 
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* Legal settlements
* '''Legal settlements'''
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* Inheritances
* '''Inheritances'''
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* Gifts
* '''Gifts'''
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* Lottery winnings
* '''Lottery winnings'''
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* Insurance settlements
* '''Insurance settlements'''
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* Retirement lump sums
* '''Retirement lump sums'''
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* Sudden increases in income
* '''Sudden increases in income'''
 
  
 
Other common sources of receiving large lump sums: <ref name="Guide">Larimore, Lindauer, and LeBoeuf (2006). ''The Bogleheads' Guide to Investing''. Chapter 15, p.180: Wiley. ISBN 978-0471730330. </ref>
 
Other common sources of receiving large lump sums: <ref name="Guide">Larimore, Lindauer, and LeBoeuf (2006). ''The Bogleheads' Guide to Investing''. Chapter 15, p.180: Wiley. ISBN 978-0471730330. </ref>
* '''A real estate sale'''
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* A real estate sale
* '''The sale of a business'''
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* The sale of a business
* '''Widowhood and divorce'''
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* Widowhood and divorce
  
 
==Managing a windfall==
 
==Managing a windfall==
* '''Take your time'''
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* Take your time
* '''Determine your tax situation'''
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* Determine your tax situation
* '''Formulate a plan'''
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* Formulate a plan
:* '''Paying down debt'''
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** Paying down debt
:* '''Retirement'''
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** Retirement
:* '''Charity'''
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** Charity
  
 
==See also==
 
==See also==
 
*[[Financial planning]]
 
*[[Financial planning]]
*[[Financial adviser]]
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*[[Investment adviser]]
  
 
==References==
 
==References==

Revision as of 21:36, 4 September 2012

A windfall, in personal finance, is defined as an amount of money that a person gets unexpectedly. Windfalls can range in magnitude from small additions to an individual's wealth to a significant increase in fortune. Since a large windfall almost invariably means huge changes in a recipient's life, psychological and emotional factors are often the most important factors determining outcomes.

Common sources of windfalls

  • Legal settlements
  • Inheritances
  • Gifts
  • Lottery winnings
  • Insurance settlements
  • Retirement lump sums
  • Sudden increases in income

Other common sources of receiving large lump sums: [1]

  • A real estate sale
  • The sale of a business
  • Widowhood and divorce

Managing a windfall

  • Take your time
  • Determine your tax situation
  • Formulate a plan
    • Paying down debt
    • Retirement
    • Charity

See also

References

  1. Larimore, Lindauer, and LeBoeuf (2006). The Bogleheads' Guide to Investing. Chapter 15, p.180: Wiley. ISBN 978-0471730330.

Notes

External links