Wake Up Wealthy June 12, 2012My MoneyOff

“Unexpected (or expected) financial windfalls can come from a number of sources,” says financial consultant Debbie Lucente.

“Whether it’s a spot bonus from an employer or an inheritance from the passing of a loved one,” she says. “We even see this around tax-filing time with refunds.”

So, if you find yourself suddenly flush with cash, what’s the next step?

Lucente says take a step back. Evaluate the big financial picture before announcing to the office: “Drinks on me!”

Bogged down by high-interest credit card debt? Pay it down. Have an emergency savings fund? Pad it with “at least three to six months of living expenses,” she says.

Next, you can consider investing in long-term goals like retirement. “If I received a sudden influx of cash,” adds Lucente, “my family and I would look at boosting our retirement savings first, and then augmenting [our children’s] college savings accounts.”

Other financial experts say not to rush into allocating funds anywhere at first. Take a deep breath, then begin resetting financial goals and getting familiar with factors like new tax brackets.

Advisors recommend building a trustworthy financial team to help you manage. Calculate your “end of day” number (how much you have to spend, invest and live off) and considering additional finance education.

Bonus PINK Link: Need the 411 on your IRA? We’ve got it here.

how you would spend your jackpot.

By Caroline Cox

“Luck never gives; it only lends.”
Swedish Proverb

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