Managing a windfall

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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

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