How to handle a financial windfall
Ever dreamed of a financial windfall? We all have.
It could happen to you – and not just if you win the lottery.
Many people receive a lump-sum retirement plan payout, an insurance settlement, inheritance, proceeds from selling a business or a big profit from selling a home.
What would you buy with a windfall? Where would you go? What gifts would you give?
Your plans may be serious, frivolous or both. But after the initial euphoria fades, you'd need to take a hard look at some important issues, like:
- What do you want to achieve with the money?
- How much can you spend each year?
- What's the best way to invest the money?
- Are there gaps in your insurance coverage or estate plan?
You also may want to learn more about the basics of investing to learn how to manage your windfall.
Please be aware that investing involves market risk, including possible loss of principal, and there is no guarantee that investment objectives will be achieved.
Decide what’s important
Talk to your family and investment professional about goals and priorities. such as:
- Planning for a financially secure retirement
- Funding your children's or grandchildren's college educations
- Paying off your mortgage
- Buying a vacation home
- Financing your own or a child's business venture
Take stock of your financial situation
Your investment professional can help you evaluate where you stand financially and identify any gaps. Review your investments, examine how you allocate your assets, and determine whether your investment strategy still meets your needs.
Take care of other financial needs:
Insurance –Even if you’re wealthy, you need protection to help
your family's ongoing needs in the event of your death and to help pay
– An extended stay in a hospital or nursing home can
easily deplete your assets. Adequate long-term care coverage may help
defray the costs.
A will – Be sure you've clearly directed who is to receive
and minimize potential estate taxes.
Neither the company nor its representatives give legal or tax advice. Please consult your attorney or tax advisor for answers to specific questions.
Don’t to go it alone – get expert help
The thought of handling a financial windfall by yourself may be intimidating. That's why it makes sense to work with a long term professional.
Their insight and experience can help you make the most of your new opportunity. They can:
Show you how long a windfall might last, based on hypothetical
returns and withdrawal rates
Explain various investments, so you can choose those that match
goals, time horizon and risk tolerance
- Help you structure an asset allocation strategy for your portfolio
- Monitor your portfolio's performance over time and help you make adjustments
Develop plans to help protect your spouse and other loved ones in
that you become disabled or die
Help you identify and fill gaps in your financial and estate
The use of diversification and asset allocation as part of an overall investment strategy does not assure a profit or protect against loss in a declining market.
Be sure to talk to your investment professional about Nationwide products that could help you meet your long-term goals.
Life insurance is issued by Nationwide Life Insurance Company or Nationwide Life and Annuity Insurance Company, Columbus, OH.