Financial Windfalls don't just happen to someone else.
Sudden money sits you in the pound seat.
(if you're prepared)
Bonuses. Stock options. Restricted stock. IPOs. Inheritance. Divorce. Lottery. Jackpot! Financial windfalls occur more often than you think. It's important to plan for them in order to grow 'the value of you'; to control creative spending impulses; and to protect you against creditors and preditors.
[KEYS] Sudden Money
ISOs, RSUs, IPOs & Bonuses
Yes, these are all employee benefits. They are also frequently "sudden money." How you plan for taxes, saving, and spending is important to understand. Each has different rules and the rules can change depending on the circumstances. If you are fortunate to receive these sudden money benefits, you need a plan. Fortunately, you know this well in advance. Get a plan!
When the day of "I do" turns to the year of "We don't", you need to know that simply 'splitting assets' isn't that simple. The IRS sits at the table too. Plan properly or you could be splitting your assets three ways. You also need a plan for living on fewer resources with potentially more expenses. Divorce is tough enough emotionally. Take some of the stress out by planning for the new you.
When you inherit wealth, you inherit responsibility. Planning for this eventual wealth will help you focus on the importance of this gift: what you want it to mean, what you want to accomplish with it, what you will do to pay-it-forward. As an heir, you may have flexibility to do some tax planning before the inheritance distribution. You may also need planning to protect your assets from creditors and preditors (especially if you have/will have minor children).
You don't have to be a gambler to be on the receiving end of pure luck. When you find yourself in this unfamiliar territory, take a step back. Get professional advice. Tax, Legal, and Planning. Don't leave out the Planning. Most "pure luck" windfalls are gone in a matter of months because of the failure to plan with intention.