What To Do With A Life-Changing Sum Of Money

Many of us dream of a life-changing sum of money landing in our bank account. When it happens, though, it can bring about challenges that are unfamiliar. Whether it’s a business sale, a lottery win, or an inheritance, such windfalls can have lasting impacts, both positive and negative. However, without the support of an experienced financial planner, it can be daunting to know where to start.

Pause and reflect

The first step is often to do nothing. In the heat of the moment, we’re all capable of making rash decisions, especially when it comes to money. So, take a breather, give yourself space to think, and allow the reality of your new wealth to sink in before making any significant financial decisions.

Plan for the future

While it’s challenging to think too far ahead, envisioning your desired lifestyle in 5, 10, or 20 years can help prioritise your decisions today. A clear and understandable Financial Plan will set out what you need to set aside for your future, and will enable you to make short-term decisions more freely.

Avoid the common pitfall of spending big initially and then reassessing what you can afford long term.

Seek guidance

With your new wealth, a world of options opens up:

These decisions can quickly become overwhelming, and information on the internet is often filled with technical jargon, and potential hidden bias.

Remember, financial decisions can carry significant weight, potentially leading to stress and worry. This is why Lottery winners are directed towards advisers in all fields, but if you’ve sold your business or received a large inheritance, you might find yourself navigating these waters alone.

You’ll also need to consider the tax, legal, and lifestyle implications of your newfound wealth. Seeking advice from the right places is essential. A good Financial Planner will recognise your needs, and direct you toward other experts who can help.

Sharing your wealth

While retail therapy or a good party can be fun, the most rewarding way to use your money might be to share it with your family or to support a cause close to your heart. Done properly, this could also offer tax benefits.

Trust your advisers

It’s crucial to trust the Financial Planner you work with. Take personal recommendations and speak to more than one if possible, to find someone you “click” with. After all, you’re likely to work with this person for decades and you should look forward to your conversations!