Tuesday, September 26, 2023
Receiving a significant financial windfall is often seen as a life-changing event, but it doesn't guarantee a positive transformation. Some may be able to make big purchases or travel, but it can also overwhelm those who receive it after a loss or need to be more experienced with managing large sums of money. The newfound freedom a windfall brings can also disorientation, particularly for those whose peers are still early in their careers, dealing with student debt, and can't relate to the sudden responsibility of managing a significant sum, often reaching five or six figures.
Gina Knox, who received a large sum of money in her early 20s, now counsels others about managing their money.
"If you don't know what to do with it, it is vitally important to do nothing," she said. "Ask a family member or financial adviser when you have large sums of money you are strategically or emotionally not prepared to deal with. Spend some time imagining what you want your life to be."
For more information see Caitlin Kelly “How Do You Deal With a Windfall in Your 20s?” The New York Times, August 19, 2023.
Special thanks to Matthew Bogin, (Esq., Bogin Law) for bringing this article to my attention.