Feast or famine: Protecting a windfall

Description

Abstract: Receiving an inheritance, a legal settlement or prize winnings may seem wonderful, but it can also raise new problems. It’s important for recipients to use smart strategies that will help ensure the money continues to grow over the long term. This article offers some guidelines and advice for recipients that will help them avoid potential traps and pitfalls. It suggests that it’s a good idea to determine the tax obligations on the amount received, pay off any debt and increase savings before spending the money. The article points out that, with care, thought and planning, a windfall can help provide financial security.