This article was written by Darrow Advisor Kristin McKenna, CFP® and originally published by Forbes.
Whether sudden or expected, a financial windfall can come in many different forms: an inheritance, selling a business, stock options, distributions from a trust, or even winning the lottery. How to best use the proceeds from a windfall depends on a number of factors unique to your situation and the type of lump sum you received. Broadly, you have options for the proceeds: save it, spend it, invest it. In many situations, the best approach will be some combination of the three.