Great news for a couple of anonymous Biloela locals recently with a $1.5 million lotto win. We all dream of winning the lotto or an unexpected windfall but what would you actually do if it happened to you?
I’m guessing most of us have a wish list of impulse purchases that we think would make an immediate improvement to our circumstances. However, it is important to pause before big purchases are made to consider the long-term implications of those investments and how they would fit into a financial strategy that sees you living well for the rest of your life and able to provide for your beneficiaries.
Our local winners have already made a wise choice in remaining anonymous, and hopefully giving them the time to process this life-altering event and plan for the future.
With additional income and increased spending also comes unwanted additional expenditure such as increased income tax, capital gains tax, stamp duty and maintenance on purchases, professional fees and more.
Here are our top five tips for wise windfall management
- First up, deposit your windfall into a high interest account
- Then seek expert professional advice from a trusted Solicitor, Accountant and Investment Advisor who ideally will work together to provide complementary advice to you
- Review and update your Will, beneficiaries and trusts with a legal professional
- Seek professional accounting advice on your new tax position so you don’t end up paying more tax than you should on your windfall
- Make a long term financial plan with a trusted investment advisor to clear any current debt and make an investment plan to ensure you can sustain your new lifestyle into retirement
Wright Clarke Solicitors are always available for legal advice and happy to refer our clients to other trusted professionals for complementary services whether you have landed a windfall or not.