Sudden Money: 8 Ways to Handle an Unexpected Windfall

By Barbara Pronin, RISMedia Columnist

Whether you’ve inherited a large sum, sold an asset for cash, or won a lottery prize, coming into money is exhilarating. But the thrill of the windfall may not last long unless you plan ahead to make the most of it.

Before you go on a spending spree, say financial consultants at Consumer Reports, take a deep breath and consider these eight steps to maximize your sudden wealth:

1. Park the cash – Do nothing immediately but put it into an FDIC-insured money market account. (If over $250,000, divide into two accounts.) Or put it in a three-month CD with a penalty for early withdrawal. 2. Consult a financial advisor – Find a fee-only financial planner who makes no commission from your investments. A certified planner can help you devise a plan to help you meet your financial goals and pay you an allowance if that is what you want.
3. Cut debt – High interest loans like credit card debt should be paid off first. Then build a safety net of cash, enough to cover six to 12 months of living expenses. Then consider paying off some or all of your mortgage, depending upon the return you might expect to get by putting the money elsewhere.
4. Boost your savings – If you are not already contributing the maximum to your retirement account, start doing so now.
5. Keep your job – A windfall will propel you into a different standard of living only if it's a vast sum of money, say several million dollars. In most cases, you shouldn't quit or retire early or you may blow through your bequest.
6. Learn to say no – Think twice before giving money to friends or family members—and especially to the salespeople who will almost certainly find you.
7. Allow for fees and taxes - If you inherit assets other than cash, the amount you receive may be less than you expect. For example, if you inherit a house or stocks, you'll likely pay a real-estate or brokerage commission when you sell.
8. Indulge yourself a bit – Once you’ve accomplished the first seven steps, use no more than 10 percent of the windfall to take a vacation or buy yourself something nice.

Tips to Manage Your Performance Review

By Diane Stafford

RISMEDIA, Wednesday, March 07, 2012— (MCT)—The annual performance review strikes fear and loathing in the hearts of most workers, even those who believe they’ve worked well and hard. There’s usually some disconnect between what we see in ourselves and what others see in us, even if both worker and manager have a reasonably good working relationship. The good news is that workers can minimize some disagreements. Writing in the March newsletter of The Five O’Clock Club, a career advice organization, counselor Cecelia Burokas offers tips to influence an upcoming evaluation. To paraphrase Burokas: -Understand the review form, the process and the timing so you know what’s being measured and when. -Keep track of your accomplishments over the review period and share them in writing before your manager writes the review. -In your note, include benefits to the organization. Remember: Your job isn’t all about you. It’s about the value you bring to the company. -If you know there was a disappointment, share facts that explain it and include ways your performance improved since the problem. -Share your own goals. It speaks well to your attitude and desire to be a valued contributor. -In your face-to-face review, hold your tongue and temper. Listen to each point before you jump to respond. -Make sure you understood your manager. Paraphrase: “What I heard you say is…” in order to know if you got what the reviewer intended. -Ask questions. If your review said you were rude in meetings, get specifics so you know what problems or misperceptions you need to correct. -If you believe something was unfair or wrong, be calm and factual to refute it. You might counter with praise from others on the topic. -If your emotions rage, admit that you’re angry or very sad and ask for time to absorb the feedback before completing the review meeting. -End on a “team” note by asking how you can help your manager or work unit be better. Diane Stafford is the workplace and careers columnist at The Kansas City Star.