How to use sudden cash to help you reach your financial goals
Congratulations! You just came into a large amount of cash – maybe you sold some real estate or a business, received an inheritance, paid off a big debt, or just got a large raise or bonus. It’s a scenario everyone dreams of, but still, now what?
Hit the pause button
First, take a deep breath. This extra cash is an opportunity to significantly improve your financial situation, but many people lack a strategy. So take your time and be intentional. While you’re contemplating out your next steps, do the following:
- Consider parking your funds in a savings account, certificate of deposit, or low-risk, liquid investment like a money market fund (but don’t forget that is a short-term parking).
- Calculate what you’ll need to pay in taxes. Many gifts and inheritances aren't subject to income tax. However, tax laws are complicated, so it’s best to seek professional tax advice well before tax season rolls around.
- Watch out for scammers. Your newfound wealth makes you a more attractive target.
- Track any debts you may have and share this information with a financial advisor. When you pay and how you pay them off can make a difference in wealth accumulation.
Map your strategy
Use our New Wealth Workbooks to document and review your financial situation, so you can strike a balance between what works for you right now and your plans for the future. Learn how to protect your new money, get organized, set priorities, and make smart investments.
Amount of new cash
What to do with a $500+ monthly increase
This extra cash might not seem like much, but it is if you use it wisely. Pay down high interest debt to free up money to achieve other financial goals.
Talk with us
Edward Jones is here to help you preserve and grow your new wealth, in alignment with your risk tolerance and with the priorities that are important to you and those around you. Our financial advisors will meet you where you are and take time to get to know you beyond your finances.
Find out what we mean by talking with an Edward Jones financial advisor now. Because there’s nothing more important to us than understanding what’s important to you. Your first meeting is complimentary.
