[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.amorusolaw.com\/blog\/how-to-be-smart-about-a-financial-windfall-new-york-ny-white-plains-ny\/#BlogPosting","mainEntityOfPage":"https:\/\/www.amorusolaw.com\/blog\/how-to-be-smart-about-a-financial-windfall-new-york-ny-white-plains-ny\/","headline":"How to Be Smart about a Financial Windfall","name":"How to Be Smart about a Financial Windfall","description":"\u201cWindfalls can result from fortunate events, like lottery winning, and unfortunate events, like a legal settlement. Whatever the triggering event, a big injection of cash can certainly be a life-changing event in someone\u2019s life.\u201d Few would complain about a financial windfall, but many people report feeling feelings of anxiety, guilt and stress about what to […]","datePublished":"2020-09-02","dateModified":"2024-04-02","author":{"@type":"Person","@id":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/#Person","name":"Amoruso & Amoruso LLP","url":"https:\/\/www.amorusolaw.com\/blog\/author\/amorusolaw\/","identifier":5,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/12de032c04195e9c39a06a6d6eea182f7b4fa655c20e245f8094a244b5cdd0cb?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"Amoruso & Amoruso LLP","logo":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/07\/amoruso-logo.svg","width":0,"height":0}},"image":{"@type":"ImageObject","@id":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b026be40c9004.jpg","url":"https:\/\/www.amorusolaw.com\/wp-content\/uploads\/2023\/04\/6a01901dd0a082970b026be40c9004.jpg","height":427,"width":640},"url":"https:\/\/www.amorusolaw.com\/blog\/how-to-be-smart-about-a-financial-windfall-new-york-ny-white-plains-ny\/","about":["Estate Planning","IRA","Life Insurance","Retirement","Taxes"],"wordCount":427,"keywords":["Estate Planning","IRA","Life Insurance","Retirement","Taxes"],"articleBody":"\u201cWindfalls can result from fortunate events, like lottery winning, and unfortunate events, like a legal settlement. Whatever the triggering event, a big injection of cash can certainly be a life-changing event in someone\u2019s life.\u201dFew would complain about a financial windfall, but many people report feeling feelings of anxiety, guilt and stress about what to do with new-found wealth, and even more importantly, how to not blow it. Making a plan, says the article “Handling a financial windfall” from MSN Money.com, is the best way to start.Treat yourself. Finding a balance between being cautious about the money and enjoying it is not easy, especially if you\u2019ve never handled large sums of money before. One way to do this, is to set aside a certain percentage of the money for fun. Depending on your situation, that might be 5% or less.What is the tax liability? Some windfalls come with taxes, and some don\u2019t. Life insurance proceeds are not taxable, but an inherited IRA is. Gambling winnings are definitely taxable, as is income realized from the sale of a home or stocks. If you don\u2019t know what the taxes on your windfall will be, find out before you spend anything.Time for a team approach. If you don\u2019t already have an estate planning attorney, a CPA or financial advisor, now is the time. Ask well-off friends, whose business acumen you respect, who they recommend. Speak with these professionals to learn about what they do, and don\u2019t be shy about asking what they charge for their services.Create financial and life goals. You may have choices now that you\u2019ve never had. Knowing what matters to you, can help determine how you use the money. It\u2019s very personal. Some of your choices:Buying or upgrading a homeInvesting in financial marketsBuying life insuranceCreating an emergency fundPaying for educationSaving for retirementPaying off credit card debtThese are just a few\u2014the choices are limitless. Think about this from a long and short-term perspective. What matters today\u2014buying a luxury car, for example\u2014may become an expensive loss in ten years.This is also the time to have an estate plan created, or if you have an estate plan, this is the time to update your plan. A big change in your financial situation may require changes to protect your assets, which can be done through your estate plan.Enjoy the windfall but also be smart about protecting it.Reference: MSN.Money.com (July 31, 2020) “Handling a financial windfall“"},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Blog","item":"https:\/\/www.amorusolaw.com\/blog\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"How to Be Smart about a Financial Windfall","item":"https:\/\/www.amorusolaw.com\/blog\/how-to-be-smart-about-a-financial-windfall-new-york-ny-white-plains-ny\/#breadcrumbitem"}]}]