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You know, like maybe a 100-year-old distant relative youve never met dies and leaves you their fortune.
Or maybe you win the lottery.
Unfortunately, many of those who land a major amount of money at once do not make wise decisions.
If you come into a windfall, experts advise you to avoid these fivedisastrous financial mistakes.
you could celebrate, but dont overdo it.
Keep it quiet, Corgiat said.
Family and friends will come out of the woodwork with their hands out.
Your windfall could involve tax obligations.
What sort of a windfall is it?
Some have significant tax ramifications.
Due to some unlucky timing, one client owed more taxes than the cash he received from his options.
He turned his big windfall into an unexpected bill to pay.
And often youll have to pay these taxes pronto.
If you forget, theres a penalty when you file.
Still, Corgiat said to avoid buying big-ticket items like a Corvette or a powerboat.
Wait until youve worked out asafe financial planbefore you splurge on something substantial.
And dont get out of debt only to land in more debt later.
You should also check that to keep your emergency fund fully stocked at all times.
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