How to Invest a Sudden Windfall of Cash

Apr 24, 2017 | Blog, Investing

Suddenly having a large amount in your bank account might seem like a pipe dream at the moment, but it can become a reality when you least expect it. Whether it’s through the a promotion or a sudden business success, it can happen, and you should be prepared (and optimistic).

Without further ado, here are some tips on how to invest a windfall of wealth, and make it last for your lifetime:

Don’t make any rash spending decisions

When your first receive a sudden windfall, it can be tempting to make rash spending decisions. It might seem counterintuitive, but doing nothing initially is often the best course of action for this very reason.

There’s going to be a huge rush of emotions when you suddenly have more money – but those are your worst enemy. The key to long-term financial success is separating rational thoughts from the short-term choices you’ll regret next week.  By allowing your emotions to cool, you’re more likely to make a smart long-term decision, instead of a long-lasting mistake.

Resist the urge to make a major strategy shift

If you already have an investment plan in place, you might be tempted to make major shifts to it – such as changing your asset allocation or trying to time the market.

Unless that wealth comes with changing life circumstances (such as your retirement date), you probably shouldn’t make a major shift to your portfolio. Don’t let a sudden influx of wealth damage progress towards your long-term goals.

Consider working with a fiduciary advisor

Don’t discount the value that a trusted advisor can bring to the table when it comes to a sudden windfall. An fiduciary advisor can help you reach your goals and needs, while always having your best interests in mind.

Learn more 

At LexION Capital, we help our clients invest their wealth, and offer bespoke investment solutions based on their long-term goals and needs. If you’d like to learn more about how we can help you achieve your financial goals, let’s start a conversation today.

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