MyMoney Online

How to make the most of a financial windfall (tax refund, bonus, gift, etc.)

(Click here for all the latest personal finance articles and tips from our resident experts.)

How do you make the most of an unexpected (or expected) windfall such as a bonus, inheritance or (we can dream, can’t we?) lottery jackpot?

About 70 percent of people who win large amounts in the lottery have nothing to show for it after seven years. The same can be said of people who received other windfalls such as inheritances or financial gifts.

How to use your windfall to live the life you dream of

If you’re lucky enough to have received such a windfall (or you if you haven’t but you play the lotto and you’re hopeful you will); how can you make the most of it? How do you ensure you use it to live the life you’ve always dreamed of?

“You’ve got to think like a wealthy person,” says Certified Financial Planner Paul Roelofse. “Wealthy people don’t pass the time thinking how they should spend. They look at how they should guard their capital and grow it, not only for themselves but for generations to come.”

So, how can we guard and grow a windfall that comes our way?

“I would suggest, before you do anything, take a few days off and go away to think about what just happened,” suggests Roelofse. “Think hard about what you’ve got. Let it really sink in.”

Then, when you’ve taken a deep breath and gathered your thoughts, get professional help. “This is what wealthy people do,” says Roelofse. “They have financial planners and advisors.”

How to find a good, honest financial advisor

Start your search for honest advice at the Financial Planning Institute (FPI). The FPI’s website has a function whereby you can search for and browse the CVs of accredited advisors in your area.

All these advisors are “Certified Financial Planners” – the gold standard when it comes to certification of financial advisors. “This is an international qualification,” assures Roelofse. “In addition, if anything goes wrong, you’ve got recourse with the institution as well as with the Financial Services Board (FSB).”

(Click here for all the latest personal finance articles and tips from our resident experts.)

Listen to the Soundcloud clip for more detail.


Recommended

by NEWSROOM AI
Read More
Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Why you must own Naspers, the hottest tech-firm in Africa (or is that China?)

Naspers is expensive, but geared for growth. Ashburton Investments’ Nick Crail on why you should just be brave and buy its shares.

Why medical aid is woefully inadequate (and how affordable gap cover helps)

Why medical aid is woefully inadequate (and how affordable gap cover helps)

It may come as a shock (but it’s all there in the small print); medical schemes do not fully cover you when you’re hospitalised.

Why the rand is getting stronger (and how much stronger it can get)

Why the rand is getting stronger (and how much stronger it can get)

Michael Keenan, Currency Strategist at Barclays Africa, discusses our volatile currency.

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! South Africa gets tax-free savings accounts on 1 March 2015

Savers rejoice! On 1 March 2015 government introduces tax free savings accounts. Financial planner Claude Hannah explains…

13 random thoughts on living a happier, less materialistic life

13 random thoughts on living a happier, less materialistic life

702/Capetalk's Kabous le Roux shares 13 thoughts he has on being less materialistic and living the good life right here right now.

10 reasons why this is BY FAR the best way to save for retirement

10 reasons why this is BY FAR the best way to save for retirement

Is there a single best way to build your wealth so you can retire with dignity? Yes, there is, despite costs and limitations.

How much you should save for retirement

How much you should save for retirement

You know you should save for retirement, but do you know how much? Financial planner Claude Hannah breaks it down in simple terms.

Popular articles
The Polo GTI has got that vrrrpha mentality written all over it - Jacob Moshokoa

The Polo GTI has got that vrrrpha mentality written all over it - Jacob Moshokoa

Automotive Journalist, Jacob Moshokoa shares his views of the Polo GTI 2018, and chats about the vrrrpha mentality among young men

'Drug traffickers are used as a decoy'

'Drug traffickers are used as a decoy'

Director at advocacy group Locked Up SA, Patricia Gerber describes the extent of drug trafficking from South Africa.

Yet another wet and cold weekend for Gauteng warns weather service

Yet another wet and cold weekend for Gauteng warns weather service

Gauteng residents are warned to brace themselves for another weekend of heavy rain, possible hail and damaging winds.

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone Viral'.

Calls for more women to come forward and testify at Timothy Omotoso's trial

Calls for more women to come forward and testify at Timothy Omotoso's trial

Thanduxolo Jindela explains why he is running a campaign to encourage more of Omotoso’s victims to come out and testify.

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

Azania Mosaka catches up with Sbahle Zwane's mother to hear about developments with his schooling.

[WATCH] Is it a cow's penis or an udder? Well, this kid thinks it's a penis

[WATCH] Is it a cow's penis or an udder? Well, this kid thinks it's a penis

Check out the videos, tweets, Facebook posts that have gone viral and why this kid cheered her dad on in the toilet.