Importance Of Receiving A Windfall
So, how do you make the best choices after receiving a sudden influx of cash or assets? We’ve outlined a few steps to take to help you make rational decisions.
• Take a step back. Oftentimes, the best step to take is to not take one at all. Stashing the windfall aside for a few months will all you to step back from the situation and evaluate your options – this is vital and will allow you to make the best choices during and after the grieving process. While you will not earn much interest on the money by having it sit untouched in your account, but no interest is better than wasteful spending that only makes the situation worse. Take your time …show more content…
While saving for retirement and paying off debt with a windfall is a prudent decision, sometimes having fun with newly acquired money is a great morale boost after the grieving process. The best way to go about allocating a portion is to take a small percentage of the money, less than 10%, and do something fun with it – go on a vacation, dine out at a nice restaurant, purchase that fun toy you’ve been eyeing. Allowing yourself some leeway and freedom will help you make great decisions on what to do with the remaining money.
And finally, receiving a windfall can be both a blessing and a curse. Taking proper precautions and working to ensure it is squandered is within your best interests. If you have any questions or doubts about the process, talk with a friend or loved one, or reach out to a trusted financial advisor and get a second opinion.
And if you are looking for a place to store your recent inheritance, look to the premier banking services of Virtus Bank – we can help you by providing concierge service that is second to