You're likely to incur federal and/or state income taxes, capital gains taxes, or estate taxes on your money, which can mean that a substantial portion of your windfall may be going to the government. Sitting on the money for a few months can help clear your head of any temptation to spend it, and will help give you the time you need to develop a financially sound plan.įigure out what you'll need to pay in taxes. In most cases, you will owe a portion of your windfall in taxes. Put your windfall funds aside temporarily. Put the money into a relatively safe short-term account ( savings account, money market account, or CD) while you determine the best strategy for your windfall. Below are 10 key steps that can help you maximize your newfound money and put you on more secure financial footing. With a financial plan based on your personal goals, you can ensure your money is not wasted. So what’s the secret when considering what to do with a windfall? Planning and careful consideration.

Environmental, Social and Governance (ESG) Investingīeing smart about how to invest a windfall could mean an earlier retirement, a more comfortable monthly budget, or even just more peace of mind.Bond Funds, Bond ETFs, and Preferred Securities.ADRs, Foreign Ordinaries & Canadian Stocks.Environmental, Social and Governance (ESG) ETFs.Environmental, Social and Governance (ESG) Mutual Funds.Benefits and Considerations of Mutual Funds.These are easily available for KiwiSaver and other managed funds on Smart Investor. It’s also wise to read any documents relating to an investment you’re considering, such as the investment statement and/or prospectus. Read the business sections of the newspaper, go online, talk to an adviser, bank manager, or accountant. Research, compare and contrast the options – or get someone to do that for you.

While studying the options for investing, keep in mind that looking at past results is not a reliable way of predicting what the future will bring. Then there are the many kinds of investments to choose from, such as bank deposits, bonds, property or shares. There are so many choices to make – such as whether to invest in professionally managed funds such as KiwiSaver or to take more of a DIY (do-it-yourself) direct approach. We need to do our homework, or get a professional to do it for us.

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