Every once in a while, some individuals will have a financial windfall. This group includes those who win lotteries, professional athletes, and entertainers who have an unexpected hit. In addition to those groups, a financial windfall can come in the form of an inheritance from a loved one.
When a financial windfall comes from a loved one through an inheritance, there often is a great deal of sadness that accompanies the financial assets. It is important to find a comfort level if this kind of event happens in your life.
We believe there are strategies and steps that can— and should be— taken to help you integrate the new financial situation in your life. We believe that “sudden money” will change your life. Whether it changes your life for better or for worse often is a result of what occurs during the first year of receiving the money.
Financial planning for sudden money events includes the non-financial part of receiving the money as well as tracking a financial coursethat includes a lifestyle where more money is spent every year.
We believe that a thorough inventory of your wants and needs is an important part of the planning you should do if you experience an unexpected sudden money event.
Some of the activities we believe are important as it relates to financial planning are:
- Establishing separate buckets of money for various uses.
- Creating a budget for how you want to spend your money on your lifestyle.
- Having an investment plan that allows you to grow your assets.
- Knowing how you want to include others in your lifestyle. (Children and grandchildren.)
- Having a discussion about philanthropic activities and if your participation and/or contribution would make your life better.
- Understanding what is a cooling-off period and why it is important in these situations.
Our goal in working with individuals who have had sudden money experiences is to help you focus on what is important to you and to help you discover activities and strategies that will help make your life better.