Bruce Helmer and Peg Webb are financial advisors at Wealth Enhancement  and co-hosts of “Your Money” on WCCO AM 830 on Sunday mornings. Email Bruce and Peg at yourmoney@wealthenhancement.com. Advisory services offered through Wealth Enhancement Advisory Services, LLC, a registered investment advisor and affiliate of Wealth Enhancement Group®. 

Sudden wealth can arrive in many forms—an inheritance, the sale of a business, a legal settlement, or even a lottery win. Whatever the source, a financial windfall offers a rare opportunity: not just to improve your own financial security, but to create meaningful, lasting change. 

But before you do anything, take a breath. 

Pause before you spend 

The most important first step, and often the most difficult for an investor, is to do nothing fast. Emotions run high after a financial surprise—good or bad—and quick decisions can lead to regrets. Experts often recommend waiting at least a few weeks and even up to a year before making any major moves. During that time, assemble a team: a financial advisor, tax professional, and estate attorney. Together, they’ll help you create a plan that aligns with both your values and your long-term needs. 

Secure your financial foundation 

Once the dust settles, start by reinforcing the basics. Use part of the windfall to pay off high-interest debt—credit cards or personal loans, for example. Then make sure your emergency fund is solid: aim for 6 to 12 months of living expenses in an accessible account. 

Don’t forget insurance. A larger net worth can bring greater liability, so it’s wise to review your home, health, life, and umbrella insurance coverage. Peace of mind is one of the best purchases you can make. 

Invest for the future 

A sudden influx of cash can be the seed of long-term financial independence—if invested wisely. Max out retirement accounts like IRAs, Roth IRAs, or 401(k)s. Consider tax-advantaged health savings accounts (HSAs) if you qualify. 

Depending on the size of your windfall, you may have the wherewithal to consider private investments that ordinarily are not available to less wealthy, “non-accredited” investors. But with the added complexity and higher fees of these opportunities, you need to tread carefully.  

Rather than investing everything at once, work with your advisor to develop a diversified plan tailored to your goals and time horizon. And be cautious about putting too much into a single stock, property or “hot tip” from a friend. 

Give with purpose during your lifetime 

Beyond personal gain, a windfall is a powerful opportunity to give back—and to do so thoughtfully. Many people choose to give during their lifetime, allowing them to see the results of their generosity in real time. 

Vehicles such as Donor-Advised Funds (DAFs) allow you to set aside money for charitable giving, receive an immediate tax deduction and then distribute the funds over time. You can also donate appreciated assets, such as stocks or real estate, directly to charity, avoiding capital gains tax and increasing the impact from your generosity. 

Focus your giving on causes that resonate with you. Whether it’s education, environmental conservation, healthcare or the arts, targeted philanthropy tends to be more effective—and more personally rewarding. 

Evaluate impact, not just emotion 

While generosity is noble, it’s even better when it’s strategic. Look for nonprofits with strong track records and measurable outcomes. Ask: What kind of impact is this organization having? How is it tracked? Can my gift be multiplied through matching grants or collaboration? 

Leave a meaningful legacy 

A windfall also gives you a chance to think long-term. Updating your will and estate plan ensures your assets go where you want. Consider charitable trusts or endowments that continue to support your values after you’re gone. 

Most importantly, talk to your loved ones. Share not just your plans, but your purpose. What matters most to you? What do you want your wealth—and your life—to stand for? 

Receiving a windfall can feel overwhelming, but it’s also a tremendous privilege. Used wisely, it can provide security, fund dreams, and create real lasting good in the world, and security for your family. The key is to move slowly, plan carefully and give intentionally. 

In the end, it’s not just about having more. It’s about using more—for good. 

See the whole article in Pioneer Press.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. 

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