Difference between revisions of "Managing a windfall"
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==Common sources of windfalls== | ==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: <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 |
| − | * | + | * The sale of a business |
| − | * | + | * Widowhood and divorce |
==Managing a windfall== | ==Managing a windfall== | ||
| − | * | + | * Take your time |
| − | * | + | * Determine your tax situation |
| − | * | + | * Formulate a plan |
| − | + | ** Paying down debt | |
| − | + | ** Retirement | |
| − | + | ** Charity | |
==See also== | ==See also== | ||
*[[Financial planning]] | *[[Financial planning]] | ||
| − | *[[ | + | *[[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.
 | "Most financial practitioners agree that well over 50 percent [of windfalls] are lost in a relatively short period of time. NBC News reported that more than 70 percent of lottery winners exhaust their fortunes within three years." -Larimore, Lindauer, and LeBoeuf (2006). The Bogleheads' Guide to Investing. Chapter 15, p.180: Wiley. ISBN 978-0471730330. |
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
- ↑ Larimore, Lindauer, and LeBoeuf (2006). The Bogleheads' Guide to Investing. Chapter 15, p.180: Wiley. ISBN 978-0471730330.
Notes
External links
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