Difference between revisions of "Managing a windfall"

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==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==

Revision as of 19:27, 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


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


External links