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140 - What Should I Do When I Receive a Large Windfall?

An episode of the Real Personal Finance podcast, hosted by Scott Frank and James Conole, titled "140 - What Should I Do When I Receive a Large Windfall?" was published on February 23, 2022 and runs 18 minutes.

February 23, 2022 ·18m · Real Personal Finance

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Scott and James discuss what to do when you receive a large windfall. Listener Question Can you provide (hypothetical) advice on how to handle a financial windfall? My wife and I are in our mid-thirties with one young child. She is a stay-at-home mom while I work in tech. My salary of approximately $130k covers all of our annual expenses in addition to 401k contributions (up to the amount needed to receive full employer matching). We also started contributing to a 529 plan for our son. W...

Scott and James discuss what to do when you receive a large windfall.

Listener Question

Can you provide (hypothetical) advice on how to handle a financial windfall? My wife and I are in our mid-thirties with one young child. She is a stay-at-home mom while I work in tech. My salary of approximately $130k covers all of our annual expenses in addition to 401k contributions (up to the amount needed to receive full employer matching). We also started contributing to a 529 plan for our son.

We recently came into possession of $2.3M in concentrated stocks and bonds with unrealized capital gains of around $1.5M. Are there any no-brainer moves to make given our new financial position.

Timestamps:

3:08 - Windfall Introduction

5:16 - Cost Basis Impact

7:21 - What Matters Most?

9:48 - Life Goals

12:22 - It's Not About Perfect

16:02 - Value of Diversification

17:18 - Aligning Your Values With Your Goals

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James

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Scott

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