Handling a windfall — Sudden money creates new financial planning challenges

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Abstract: Whatever the source of the money — an inheritance, legal settlement, insurance payout or early retirement package — financial windfalls should be handled with care. The first question to consider is whether the “windfall” is indeed that — a bonus or employer stock options are things earned through hard work, and should be treated as part of an overall financial plan, rather than “mad money” to spend freely. This article offers several suggestions to avoid making impulsive decisions.