Cash windfalls are more common than you think. People inherit money, receive life insurance payouts, sell businesses, win lawsuits and take pension distributions every day.Here’s what to do if you receive a cash windfall. Resist the urge to immediately use the money. Take a step back and get the guidance you need. You can hire a financial advisor, tax pro or even an attorney to guide you through estate planning issues. A team of experts is even more important if your windfall was unexpected. But bad financial advice has been the downfall of many pro athletes and lottery winners. Thoroughly vet any advisor you hire. Don’t let emotions cloud your decision-making if your windfall came from a divorce or a death. Avoid hasty decisions. Don’t give in to pressures from family or friends, and set limits on what you give them. More than a few might line up to profit from your fortune or misfortune. Finally, define your goals and establish a plan to achieve them. It’s your money, so take control of it.
