Changes and choices
Coming into money may mean opportunities that you haven't previously considered.
1. Pursue a more meaningful career
This could be a chance to change your career path. Analyze your spending needs, investment objectives and long-term cash flow projection. Then consider what you want to do now that you have some flexibility.
2. Buy real estate
It may be a good time to buy property and make a bigger down payment, reducing monthly mortgage payments. But remember this is a long-term investment. You may not be able to get to your cash quickly if circumstances change. And you will have other expenses to consider and cover: real estate taxes, insurance and maintenance.
If you do not plan to use your windfall for day-to-day living expenses, you may want to consider investing it. Take the time to understand your short- and long-term goals so that you can build an investment program that meets your personal objectives and risk tolerance. (See the Investing section for more information.)
4. Share your wealth
Before taking any action, make sure your own long-term needs have been addressed. Don't give in to influence from others to make gifts, loans or impulse purchases that will leave you second-guessing your generosity.
5. Donate to charity
There are many avenues for charitable giving, from volunteering to cash gifts to creating a charitable legacy. If you decide to make any sizable gifts, be sure to discuss them with your team and tax advisor so that you understand all of the tax and cash flow implications. (See the Giving Back section for more information.)