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How to Manage a Financial Windfall

January 03, 2022

If you have, or are expecting, to receive an unexpected financial windfall, whether through an inheritance, divorce, sale of property or a business, or other means, there are important considerations.

The truth is that a sudden influx of money is a unique situation that most people are unfamiliar with. This is not the time to figure things out on your own. A good financial advisor will help you understand your options.

From a financial perspective, managing a windfall requires a fresh wealth management approach. Investing can mean the difference between having the money last you the rest of your lifetime, or not. Ideally, recipients of instant wealth would take time to consider their financial life and goals before they do anything with the money.

The advisors at Middlesex Financial Group typically discuss prudent fiscal options, such as:

•  Putting the majority of the money towards your biggest goal - retirement.

•  Adding the maximum contribution limits to your tax-deferred accounts, like a Traditional or Roth IRA. Once that is completed you should explore ways to invest the remainder.

•  If you are in your 40’s or 50’s, you’ve likely shaped your portfolio to grow and build wealth. After including the money from the windfall, you may want to restructure your holdings to ensure that the money is properly allocated to align with your financial goals.

If you would like to schedule a consultation with an experienced advisor, call 508-315-5449.

Learn more about financial planning.

Not FDIC Insured Not Bank Guaranteed May Lose Value
Not Guaranteed by any Government Agency Not a Bank Deposit

The financial advisors of Middlesex Financial Group offer securities and advisory services through Commonwealth Financial Network®, member FINRA/SIPC, a Registered Investment Adviser.

Middlesex Financial Group is not a registered broker-dealer or Registered Investment Adviser. Middlesex Financial Group and Commonwealth are separate and unaffiliated entities of one another. Fixed insurance products and services offered by Middlesex Financial Group are separate and unrelated to Commonwealth Financial Network.

by Middlesex Savings Bank