- Could You Handle a Financial Windfall?
Receiving a financial windfall is often a life-changing event. It's a relatively common one, too. You might never win the lottery, but the odds are that at some point you'll receive a significant amount of money, perhaps from an inheritance, bonus, insurance settlement, or the sale of a home or business. If so, would you be prepared for the financial decisions you might suddenly face?
- Sudden wealth
Before you go on a spending spree with that extra money you just received, take a look at your financial position to determine just how wealthy you are. If you need help, a professional (tax attorney, financial planner, insurance agent, or accountant) can advise you on an investment plan for the future. You're more vulnerable to lawsuits now, so think about purchasing an umbrella liability policy. Re-examine your life insurance needs, too. And since estate planning is even more important for you now, remember to update your will.
- What's the best way to handle a financial windfall?
- When I play the lottery, I have to choose between a lump sum and annual payments. Does it matter?